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RETAIL PRICES OF RICE IN AUGUST SPIKE TO NEW ALL-TIME HIGHS T

A MAN waits for a customer inside the Dagonoy Public Market in San Andres, Manila. Data from the Philippine Statistics Authority showed average retail prices for all varieties of rice posted double-digit increases in August to mark new all-time highs. The supply constraints for the staple have been blamed for the record spikes, which, in turn, were tagged key factors in the 6.4 percent inflation in August, the fastest in over nine years.

By Jasper Emmanuel Y. Arcalas

HE average retail prices of rice in end-August rose by double digits to new all-time highs as the slim market presence of the National Food Authority (NFA) proved unable to check the spike in retail prices of the staple. The average retail prices of well-milled and regular-milled rice in the fourth week of August grew by 11.30 percent and 15.24 percent year-on-year, respectively, according to the Philippine Statistics Authority (PSA). “The average retail price of well-milled rice at P47.12 per kilogram [kg] posted a higher rate of increase from previous week’s level by 2.30 percent,”

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GMA: China must play ‘Big Uncle’ role in WPS

By Cai U. Ordinario

@cuo_bm

URNING the 21st Century Maritime Silk Road into a reality requires of China the role of a “Big Uncle” in the West Philippine Sea, according to Speaker Gloria Macapagal-Arroyo. In a speech delivered at the China-Asean Mayor’s Forum in Nanning City in Guangxi province, Arroyo said that by assuming the role of Big Uncle, China will be able to encourage cooperation especially

in the disputed West Philippine Sea. Apart from the Philippines, China shares the waters in that area with Asean countries Malaysia, Brunei Darussalam, Indonesia, Singapore and Vietnam.

“In my humble view, the ideal approach is for China to think of itself as the Big Uncle to many nephews in the family. Both uncle and nephews have responsibilities within the family to work for

“In my humble view, the ideal approach is for China to think of itself as the Big Uncle to many nephews in the family. Both uncle and nephews have responsibilities within the family to work for harmony and the common good of the family.”—Arroyo

harmony and the common good of the family,” Arroyo said. The former Philippine president also said the “One Belt, One Road” initiative currently lacked feasibility studies, which will enable countries to better understand how they can contribute in creating the 21st Continued on A2

2 taxiways to ease Naia congestion launched By Recto Mercene @rectomercene

WO newly built rapid-exit taxiways (RET) that would allow a speedy exit of landing airplanes on runway 06-24 will be opened for operation at 3 p.m. today, (Monday), promising to reduce runway congestion at the Ninoy Aquino International Airport (Naia). Built at a cost of about P300 million, the new RETs basically allow aircraft to exit the runway at 93 kilometers per hour, from the previous 65 kph, Manila International Airport Authority (Miaa) General Manager Ed Monreal said. He explained that, without the RET, a landing airplane usually stays in the runway for two to three minutes, requiring longer separation for the next landing airplane. “When RET is in operation, aircraft See “2 taxiways,” A2

it said in its recent price-monitoring report. “Similarly, the average retail price of regularmilled rice at P43.86 per kg went up by 3.01 percent, from previous week’s level of P42.85 per kg,” it added. Based on PSA data compiled by the BusinessMirror, this is the first time that the average retail price of well-milled rice broke the P47-per-kg price level. The P43.86-per-kg average retail quotation of regular-milled rice is also the highest in the country’s history, according to PSA data. At the wholesale trade, well-milled rice was sold at an average of P44.49 per kg, 13.21 percent higher than the P39.30-per-kg level it posted a year ago. The figure was also 2.21 percent over the previous week’s See “Rice,” A2

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A RAMP controller looks at an arriving commercial plane as it taxis to its designated parking bay at the Naia Terminal 1 on Sunday, on the eve of the unveiling of two new rapid-exit taxiways meant to ease airport congestion. NONIE REYES

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From hybrids in PPP to hybrid PPP to hybrid budgeting Alberto C. Agra

ead

L AlbertoPPP C. Agra

VEN in public-private partnerships (PPPs) and budgeting, policy-makers offer an alternative approach to pure or unadulterated strategies. Under a hybrid system, they apply not one, but combine two or more strategies and approaches. “Hybrid budgeting.” A couple of weeks ago, it was reported that Congress and the Executive branch agreed to mix two systems on budgeting. Under the hybrid budgeting strategy, which is being considered for the 2019 national budget, the cash-based and obligation-based budgeting systems will be both used. Continued on A11

PSA data show local, foreign investments shrink 14.8% in H1

PPROV ED foreig n and Filipino investments contracted 14.8 percent in the first semester of 2018, according to the Philippine Statistics Authority (PSA). In the first semester of 2018, approved investments declined to P299.82 billion in the January-toMay period this year, from P351.87 billion in the same period last year. Data showed foreign direct investments pledges rose 10 percent to P45.15 billion, while approved Filipino investments contracted 18.1 percent to P254.67 billion. In the first semester, PSA data also showed the largest decline in approved investments among the seven investment promotion agencies (IPAs) was observed in the Subic Bay Metropolitan Authority (SBMA). Data showed that approved investments in SBMA contracted 93.2 percent to P2.77 billion in the first semester of 2018 followed by the Authority of the Freeport Area of Bataan (Afab) with a contraction of 88.2 percent to P41.8 million;

and the Philippine Economic Zone Authority (Peza) with 55.9 percent to P53.07 billion. PSA data also showed there were no foreign investments approved in Afab and the Board of Investments (BOI) in the Autonomous Region in Muslim Mindanao (ARMM). Once these investments are realized, the PSA projects that these will create only 78,258 jobs, a 47.8-percent decline from the 149,857 jobs estimated from Filipino and foreign national investments in the first semester of 2017. The sectors that will post the largest declines in employment generation are Financial and insurance activities with a contraction of 98.6 percent; Information and communication, 75.8 percent; and Professional, scientific and technical activities, 70.1 percent. The PSA obtained the data from the seven IPAs: the BOI, Clark Development Corp., Peza, SBMA, the Afab,BOI-ARMM and the Cagayan Economic Zone Authority.

n JAPAN 0.4848 n UK 69.4349 n HK 6.8394 n CHINA 7.8638 n SINGAPORE 39.0713 n AUSTRALIA 38.6578 n EU 62.3969 n SAUDI ARABIA 14.3134

Cai U. Ordinario Source: BSP (7 September 2018 )

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A2 Monday, September 10, 2018

Cost of shifting to federalism only ₧17.6B: Con-com TWG

By Bernadette D. Nicolas

@BNicolasBM

HE total direct additional cost of shifting to federalism will amount to P17.567 billion, a figure way below earlier estimates by economists and certain groups. The P17-billion tab was revealed by Wendell Tamayo, head of the technical working group (TWG) of the Consultative Committee (Concom), in a recent forum. Tamayo’s estimate on the cost comes more than a week after the Con-com and the Economic Development Cluster met to compare figures on the cost of shift to federalism. Although there is additional cost, Tamayo stood firm that the government will have savings once the country shifts to federalism. “The federal government which is very bloated will go on a diet because the regions will transfer functions, personnel, assets and will start to build up their own capacity but based within the cash revenues given to them under the federal system,” he said. However, he said it is the role of the Department of Budget and Management (DBM) to look into the P17.5 billion additional cost vis-a-vis the savings, even as he noted that collapsing into one the separate electoral tribunals, as proposed by Con-com, will result in savings. “It is the management side of DBM that will look at how this will evolve and it is the individual agencies who will prepare and assess their own capacities on how they

Rice. . .

Continued from A1

average wholesale price of P43.81 per kg. This is the first time that the wholesale price of well-milled rice reached the P44-per-kg price level. “At the wholesale trade, the average price of regular-milled rice at P41.49 per kg during the week recorded a faster rate of increase of 3.23 percent from the level a week ago,” the PSA said. “On an annual basis, it accelerated by 16.32 percent during the week,” the PSA added. Rice is usually more expensive during the lean months of July to September, when harvest declines significantly. The arrival of rice imported by the NFA was expected to ease the increase in rice prices. However, bad weather delayed the delivery of rice imports to NFA’s warehouses and prevented the agency from immediately distributing rice to local markets. In fact, the NFA is importing an additional 250,000 metric tons (MT) of rice via open tender to beef up its stockpile and arrest the spiking retail prices of the staple in the market. The additional volume is expected to arrive in the country in November, when almost all of the country’s riceproducing provinces are harvesting. “The additional importation can increase NFA’s active participation in the market by as much as 20 percent,” the NFA said. From January to August 23, the NFA said it has distributed a total of 4,443,082 bags of rice through its accredited retailers, outlets and other recipients. Currently, the NFA distributes rice through its 15,892 accredited retailers and outlets inside and outside markets, such as Institutionalized Bigasan sa Palengke, Biogasan Bayan, Barangay Bagsakan/Barangay Food Terminal, Bigasan sa Parokya, rolling stores and the Tagpuan Rice Response Delivery in remote barangays.

will comply with the constitutional requirements for noncentralization of functions,” Tamayo added.

Con-com’s estimate

EARLIER, Con-com said the estimated total incremental cost directly attributed to federalism features would only amount to P13.29 billion, way below what was computed by the National Economic and Development Authority—with estimates as low as P156 billion to as high as P243 billion. Con-com’s earlier computation of P13.29 billion excludes the computation for additional courts and additional constitutional commissioners since the only ones considered were those directly attributed to federalism features, meaning, those that are necessary for the country to shift to federalism. Putting up additional courts and additional constitutional commissioners are considered “improvements” of the current setup. According to a separate computation made by Tamayo, the P17.5 billion in additional cost already includes the tab for setting up three new high courts and additional commissioners and staff for the constitutional commissions, particularly in the Commission on

Audit (COA)and the Federal Ombudsman Commission. In its proposal, the Con-com is adding two constitutional commissioners who are experts on quality control and management under the Commission on Audit. There will be four additional Associate Ombudsmen for the Federal Ombudsman Commission. Of the total P17.5 billion in additional cost, P2.807 billion will go to the additional court justices and their staff for the Federal Constitutional Court, Federal Administrative Court and Federal Electoral Tribunal. In other words, each additional court with nine justices and their staff as proposed by Con-com—in a bid to speed up the resolution of cases—will cost about P900 million each. Although the Con-com is proposing four new high courts, including the Federal Supreme Court, Tamayo excluded the cost for the Federal Supreme Court since it is not classified as an additional cost, being already in the current setup. The salaries of additional constitutional commissioners and their staff for the COA and Federal Ombudsman Commission will incur a cost of P1.8 billion. Although the Con-com is proposing to add the Commission on Human Rights and the Philippine Competition Commission to the list of constitutional commissions, Tamayo excluded these commissions from the computation since these already exist in the present setup. Besides the COA, the other current constitutional commissions listed in the 1987 Constitution were the Civil Service Commission and

the Commission on Elections. Notably, the bulk of the additional cost of P17 billion will go to the salaries of additional federal legislators (12 senators and 108 congressmen), their staff and the operating expenses of their offices, which will amount to P7.66 billion. The 15-man Federal Intergovernmental Commission, which will administer the equalization fund for those regions in need, will cost the federal government an additional P300 million, covering the salaries of its appointive members and the group’s operating cost. Meanwhile, the second-biggest item funded from the P17 billion will go to the direct new cost of having 17 federated regions. Although Con-com is proposing a total of 18 federated regions, Tamayo excluded from the computation the Bangsamoro region since there is already an existing government for the Autonomous Region in Muslim Mindanao. Tamayo said P5 billion will be composed of salaries of regional governors and deputy regional governors, estimated operating expenses of offices of the Federal Regional Executive Government (P3.3 billion) and the salaries of Regional Assembly members, their staff and operating expenses of offices (P1.7 billion). Earlier, the Con-com said it was “willing to reconcile” its position with other government agencies. Con-com Chairman and retired Chief Justice Reynato S. Puno told the BusinessMirror they also asked for time to respond in writing to the areas of concern on the draft Charter raised during the Economic Development Cluster meeting.

SC junks ₧12-T reward bid of Marcos wealth informer Continued from A12

(Treasurer Tan), former Secretary of Finance Margarito B. Teves, the governor of the Bangko Sentral ng Pilipinas and the secretary of the Department of Environment and Natural Resources (DENR) as respondents. In denying the petition, the SC stressed that the grant of informers’ reward depends on the considerations by the appropriate government officers under Republic Act 2338, also known as “An Act to Provide for Reward to Informers of Violations of the Internal Revenue and Customs Laws.” Under the law, the Court noted the information supplied must be new or not yet known to the Bureau of Internal Revenue (BIR). It must not pertain to a pending or previously investigated case, and must have actually led to or was the actual cause for discovering frauds upon tax laws. It added that the information must have actually led to the recovery of sums relating to the fraud, as well as the conviction and/or punishment of the liable persons. However, the SC noted that based on Lihaylihay’s letter to the BIR-PCGG in 1987, the petitioner made broad claims about the Marcos family’s ill-gotten wealth and stressed the need for the government to recover them. The petitioner, the SC said, failed to cite specific acts of tax fraud, violations of internal revenue and customs laws. “From his 1987 letters to the present petition, his bases for rewards swelled from the Swiss

bank deposits, gold bars, and diamonds mentioned in his original letters to Atty. Pitargue to virtually all forms of the Marcos family’s ill-gotten wealth,” the SC explained. “ He would not even stop there. He also turned his attention to President Marcos’ cronies, such as Roberto Benedicto, Lucio Tan, Fabian Ver, Herminio Disini, and Jose Campos. Rather than animate the State’s efforts with direct and reliable information, he has embarked on a fishing expedition, casting his lot on a progressively widening net,” the court added. W hile it may be true that many cases brought against the Marcos family and their cronies involve violations of tax laws, the SC said, the law governing informer’s rewards demand specific information that would help in either securing convictions for tax offenses or recovering proceeds that should have otherwise been paid to the government as taxes. Furthermore, the SC said Lihaylihay failed to show that his supplied information was the main basis that prompted the government to prosecute the Marcoses and their cronies for possible tax offenses and recovering from them their ill-gotten wealth. On the contrary, the SC noted the petitioner’s March 11, 1987, letters acknowledged ongoing efforts by the BIR and the PCGG to prosecute the Marcoses and recover their ill-gotten wealth. The Court added that Lihaylihay also failed to prove that he was the sole and exclusive source of information leading to the

discovery of fraud and violations of tax laws committed by the Marcos family. “While this Court appreciates active citizen participation in addressing the iniquities of public officials, it must underscore the need to comply with procedural and substantive standards set by law for the grant of remedies. The availability of reliefs is not a matter of personal preference, but of order and judicial economy, and due process,” the SC said. “The present Petition could have been dismissed outright for its readily discernible flaws. This Court has, nevertheless, gone out of its way to painstakingly explain the plethora of grounds for dismissal,” it added. The High Tribunal also castigated Lihaylihay for resorting to forum shopping in his bid to get a reward. It noted that the petitioner filed a similar petition for mandamus before the SC, raised the same issue in two cases being tried before the Sandiganbayan, and noted several news reports saying that the Commission on Audit has also denied his claim for an informer’s rewards. “ This decision is rendered with a stem warning for petitioner not to trifle with court actions. Frivolous litigation translates to injudicious delays, hampers the resolution of more meritorious cases, and compels courts and tribunals to unnecessarily expend themselves. Its ultimate result is a weakening of the courts’ and tribunals’ capacity to effectively and timely dispense justice,” the Court declared.

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GIR rises to $77.83B at end-August By Rea Cu

@ReaCuBM

HE country’s gross international reserves (GIR) rose to $77.83 billion as of end-August, higher than the $76.72 billion in July, but lower than the $81.51 billion recorded in August 2017, the Bangko Sentral ng Pilipinas (BSP) has reported. BSP Governor Nestor A. Espenilla Jr. said that based on the preliminary data from the Central Bank, the country’s GIR level increased due mainly to inflows arising from the national government’s net foreign currency deposits, as well as the BSP’s income from its investments abroad, which were partially tempered by payments made by the national government for its foreignexchange obligations, foreign-exchange operations of the BSP and revaluation adjustments on the

BSP’s gold holdings resulting from the decrease in the price of gold in the international market. “The end-August 2018 level of GIR remains as an adequate external liquidity buffer and is equivalent to 7.5 months’ worth of imports of goods, and payments of services and primary income. It is also equivalent to 6.2 times the country’s short-term external debt based on original maturity and 4.2 times based on residual maturity,” the BSP said in a statement. Net international reser ves, which refers to the difference between the BSP’s GIR and total shortterm liabilities, increased to $77.82 billion as of end-August 2018, coming from the end-July 2018 level of $76.71 billion. The country’s GIR is the economy’s dollar cushion against potential rapid foreign-exchange volatilities in the global scene.

GMA: China must play ‘Big Uncle’ role in WPS Continued from A1

Century Maritime Silk Road. Arroyo said to this end, Asean countries can “jointly seek” technical and engineering manpower to prepare these feasibility studies designed for project proposals. She said the One Belt, One Road initiative can explore the inclusion of cities in terms of cross-border cooperation. This means forging partnerships between cities that are near each other to connect the 21st Century Maritime Silk Road. “ The term cross-border cooperation should not only consider cities that share a common highway, region or mountain like Laos and Thailand but also a common sea like the Philippines,” Arroyo said. “Bonds across the city are smaller bonds but bonds across the sea can be formed between and among our coastal communities,” she added.

2 taxiways. . . Continued from A1

occupancy of the runway would be reduced to about one minute per airplane,” Monreal said. Presently, the two major international runways have about 40 movements per hour, which could be increased to 50 movements per hour with the RET in place. Monreal said construction of the east and west RET taxiways two years ago were carried out simultaneously, but the Naia remained in operation throughout that period, without causing any flight interruptions. The two RETs are 60 meters wide and 310 meters long. Previously, the taxiways immediately attached to runway 06-24 were constructed at a right angle, requiring landing aircraft to completely slow down before making the turn. “The new RETs were constructed at a slight angle to the runway, al-

DOT. . .

Continued from A12

Acosta underscored the Philippines as an attractive place to learn scuba diving, with majority of dive instructors being Filipinos. “In other places like Thailand, for instance, there are no Thai dive instructors. Most of them are foreigners.” On Saturday Tourism Secretary Bernadette Fatima Romulo Puyat visited the booths and tried out Studio H20’s virtual-reality goggles, which showed images from Tubbataha. Speaking with reporters, she said the DOT will be “strengthening the Philippine Commission on Sports and Scuba Diving,” an attached agency,

In 2014 China created the 21st Century Maritime Silk Road initiative, which sealed its position as a key player in global trade. The initiative was envisioned to greatly increase trade between and among the countries, as well as make logistics and trade more affordable in the region. The Pan-Beibu Gulf is an intersection of economic activity in south China, southwest China and Asean, as well as an important marine traffic hub connecting China with the Asean countries. The trade corridor, the 21st Century Maritime Silk Road, could greatly increase trade between and among countries, as well as make logistics and trade more affordable in the region. During the Beibu Gulf Rim Economic Cooperation Forum, Guangxi put forward the concept of a “PanBeibu Gulf Economic Cooperation,” which extended the Beibu Gulf Rim Economic Cooperation to the adjacent Asean countries in 2006.

lowing airplanes to exit at a faster clip than before and giving the next succeeding planes [a chance] to land as soon as the preceding airplane is headed toward the RET exit,” Monreal explained. From touchdown to taxiing toward the Naia terminal parking aprons would usually take about two to three minutes. He said the RET pavement’s thickness can accommodate aircraft “characteristic of the B777300ER or above,” which means a modern wide-body plane with 300 passengers or more, up to the level of a B747 or A380. The pavement has a design life of 20 years. The whole project cost P212, 548, 37.52 for civil works and P96, 680, 178.89 for electrical works, or a grand total of P309 million. Invited to grace the occasion were Transportation Secretary Arthur P. Tugade, Director General Capt. Jim Sydiongco of the Civil Aviation Authority of the Philippines and Executive Secretary Salvador C. Medialdea. and “formulate policies to make sure all dive destinations are protected. Our overarching theme is sustainable tourism. And, of course, that goes with all marine resources.” At the welcome dinner for DRT participants, Romulo Puyat said: “Our biodiverse waters mean that there is a site for all types of dives, and all types of marine life or species to see and check off your bucket list. We have it all—from the rarest and smallest critters to the largest pelagic fish, colorful reefs and many others. So whether you’re looking for a relaxing fun dive, honing your photography skills, doing technical or cave dives, or training to free dive, we invite you to take on our dives sites to get the best of both, rather, all worlds.”

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Editor: Vittorio V. Vitug • Monday, September 10, 2018 A3

BOC files criminal charges in unlawful release of shipments at MCT-Phividec

By Rea Cu

@ReaCuBM

HE Bureau of Customs (BOC) has filed criminal charges before the Department of Justice against a dozen individuals allegedly involved in two smuggling schemes at the Mindanao Container Terminal-Philippine Veterans Investment Development Corp. (MCTPhividec). According to the BOC, the charges were filed on September 7 against consignees, a customs broker and customs employees, for violation of the Customs Modernization and Tariff Act. The BOC said it discovered the schemes—“swing operation” and “Release and File Entry Later” (RFEL)— after the unlawful release of containers from Customs before the filing of entries and payment of corresponding duties and taxes. The BOC added the schemes were applied in connivance with its employees at the Sub-Port of Tagoloan, MCT-Phividec. Under the sw ing operation scheme, shipments were released from BOC custody through the use of a Pre-assessment Single Administrative Document (SAD) printout from

the Value-Added Service Provider. The document is stamped “Subject for X-ray” or “For transfer to MICTCCA [Customs Clearance Area]” and the shipment is spirited out from the port. No taxes or duties are paid under this scheme. Under the RFEL scheme, shipments are immediately released from Customs custody with its corresponding import entry filed several days after the release. This scheme, according to the BOC, allowed the suspects to avoid detection from offices and from the BOC to properly examine a shipment. Criminal charges were filed against the owner of General Success Merchandise, Sherbet Sabillo Alazas, and its licensed customs broker, Raul

Mercado de Leon Jr. The BOC added it filed charges against RP Joegen Lisondra, who is the owner of Melea RPL Enterprises, Meljane B. Mejos, who is named as the owner of Mave Trading and Francis Victor V. Gracias, the owner of FVV Gracias Enterprises. Others charged were MCT Terminal Manager Jose Mari G. Fernandez and Customs representative Geneva C. Cedeño. The BOC alleged that Cedeño personally facilitated the unlawful release of the containers from customs premises. Customs employees charged included Liling Comayog, officer in charge of Cargo Control Division of the Sub-Port of Tagoloan, whose name and signature were found on the PreAssessment SAD of the shipments. Also charged were BOC police agents Mangigin D. Macawadib, Godofredo T. Cahulogan and Magalona T. Busok, who were on duty at the time of the unlawful release of the containers. Cao D. Malic, the on-duty customs gatekeeper, was also charged, according to the BOC. In July this year, BOC Commissioner Isidro S. Lapeña ordered an investigation to find out how 25 containers were released by customs employees at the MCT without going through the proper protocols. Of the 25 containers, eight were partially processed while the remaining 17 were not covered by permits, the BOC said.

SENATE TO REVIEW PHL’S RANKING IN EDUCATION By Butch Fernandez @butchfBM

HE Senate moved to assess the Philippine education system in a bid to improve its dismal ranking after placing 113th out of 127 countries in the education category of the 2017 Global Innovation Index. Sen. Sherwin T. Gatchalian confirmed over the weekend he was tasked to mount the inquiry in aid of crafting remedial legislation as chairman of a subcommittee mandated to “look into the current state of the Philippine education system and assess the efficacy and effectiveness” of existing education laws and policies. In filing Senate Resolution 675 paving the way for the hearings, Gatchalian is

expected to render a subcommittee report for appropriate action by the education committee, before the report is submitted to the entire Senate for plenary action, if remedial legislation is needed to promptly carry out reforms. The senator’s resolution noted that despite earlier legislative reforms introduced by the government to expand access and improve the quality of the Philippine education system, the country still ranked low in the education category. Moreover, Gatchalian grumbled over the poor marks received by the Philippine education system on the Global Competitiveness Index 20172018 recently released by the World Economic Forum. In this index the Philippines ranked 66th out of 137 countries for primary education quality, 74th for secondary education quality and

76th for quality of math and science education. According to the senator, a comprehensive review of the performance of the Philippine education system, with special emphasis on collecting and analyzing concrete empirical evidence regarding key educational access and quality indicators, is necessary to craft responsive legislation and policies that will put the country on the right path toward the transformation of the Philippine education system into a world-class institution. He added that the output of the Senate subcommittee would guide the legislative and executive reforms to be crafted in empowering the State to fulfill its obligation under the Constitution and international law to “provide the Filipino people with access to quality education at all levels.”

MMDA to respect court OK of Angkas operation

HE Metropolitan Manila Development Author it y (MMDA) on Sunday said it will respect the decision of a Mandaluyong City court allowing a motorcycle ride-hailing app to resume operations. “We will abide by the ruling of the court,” MMDA General Manager

Jose Arturo Garcia said after the Mandaluyong regional trial court granted the writ of preliminary injunction to Angkas on September 6. The court also prohibited the Land Transportation Franchising and Regulatory Board, the Department of Transportation and anyone acting on behalf of these agencies, from

interfering in Angkas’s operations. The court specifically prohibited employees of these agencies from “apprehending Angkas bikers in legitimate pursuit of work and from performing any acts that will impede, obstruct, frustrate or defeat Angkas’s pursuit of its lawful business and trade.” Claudeth Mocon-Ciriaco

A4 Monday, September 10, 2018 • Editor: Vittorio V. Vitug

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Firms urged to bid for govt procurement deals

By Roderick Abad

@rodrik_28 | Contributor

HE Philippine Government Electronic Procurement System (PhilGEPS) called on the private sector to participate in biddings for government procurement deals after upgrading its portal. PhilGEPS Executive Director Rosa Clemente said over the weekend that the government is now upgrading the procurement system. Clemente said this is expected to increase not only the number of users but also improve the quality of auctioned goods or services due to competition. “Our objectives are to upgrade technology and add functionalities,” she told the BusinessMirror in an interview on the sidelines of a forum, titled “The Future of Philippine Procurement System”, held at the AIM Conference Center Manila in Makati City last Friday. PhilGEPS is the single, centralized electronic portal that serves as the primary and definitive source of information on government procurement. State agencies, as well as suppliers, contractors, manufacturers, distributors and consultants, are mandated under Republic Act 9184, or the Government Procurement Reform Act,

to register and use the system in procuring goods, civil works and consulting services. Through the use of the PhilGEPS, transparency in government procurement is improved, since opportunities to trade with the government and the ensuing transactions are provided online. Currently, there are around 45,000 government agencies, 21,000 barangays and 154,192 merchants registered in the PhilGEPS system. Since January to August of this year, a total of 495,842 bid notices, costing about P1 trillion, has been posted on its portal, or approximately 1,000 on a daily basis. “So, hopefully, with our modernization, we can reach the 200,000 [number of listed merchants] maybe in two years’ time,” he cited. “Also, we can accommodate at least 2,000 bid notices.” While they have already covered almost all state agencies, Clemente

PHOTO TAKEN FROM PHILGEPS.GOV.PH

revealed their goal to enlist another half of the 42,000 barangays nationwide. The PhilGEPS first upgraded the government procurement system in 2000. This was followed in 2006. “This March we upgraded, but not totally, to make it fast and future-proof, as well as accommodate more users because we need to make

onboard the civil society to observe the bidding through the system, since we have electronic bidding to add additional functionalities in the system,” she said.

Virtual store

AS part of this modernization program, PhilGEPS is set to launch a virtual store by October of this year, which is portal for the procurement service. “With this facility, the common used goods will be available to the government agencies. When they go online, they can just do it just like buying from Lazada, Amazon

or Shopee. Now, we tied it to the annual procurement plan for common supplies so that the procurement service will be able also to provide the correct demand so that we will not go out of stock with the common used goods,” Clemente said. Also included in the first phase of the project is the pilot of online catalogue for merchants that the procuring entities may use for market research, and later on, if the policies will have to be revised and reviewed, will allow for electronic shopping and electronic small value. “So the agencies can readily avail [themselves] of the goods through

this online catalogue and the merchants can upload this, provided that they are a platinum member,” she said, adding that the initiative could kick off either in November or December of this year. The second phase of the modernized system will be the electronic bidding, which is scheduled to roll out in March 2019. The third and last phase of the modernization program is contract management, which would kick off by July of next year. “We can have an end-to-end facility for the government to provide their information, as well as for the merchants to know the opportunities,” Clemente said. These undertakings, according to her, will enable them to capture what was planned as against what was actually procured. The upgraded system will be linked also to the budget treasury and management system in order for the merchants to be paid online, as well, she added. “In some government agencies, there are different financial management systems,” Clemente noted. “Because of that, a problem arises with regards to payment, which I think becomes a big factor why the suppliers or the merchants are not participating in government bids.” For the next few months, PhilGEPS will announce the availability of these new functionalities. “I hope all of the private companies can participate in government biddings and government agencies— with these innovations—will be able to realize that procurement is not very hard to do. The harder process is the planning as well as the contract management,” she stressed.

BOC told to look into unloading of smuggled trucks in Davao By Elijah Felice E. Rosales @alyasjah

HE Department of Trade and Industry (DTI) has requested the Bureau of Customs (BOC) to investigate the alleged entry and undocumented release of smuggled trucks in the Port of Davao. In a letter to Customs Commissioner Isidro S. Lapeña, Trade Undersecretary Ceferino S. Rodolfo Jr. said used trucks have been unloaded in the Port of Davao and released without proper certification from the government. “It has been brought to our attention that a number of shipments of used trucks have arrived during the last few days in the Port of Davao,” Rodolfo said. Rodolfo said importers of the vehicles should have complied with government requirements before their transactions are processed and the imports released. They should have submitted a certificate of authority to import (CAI) at the time of

filing the import entry declaration. The date of the CAI must be prior to the arrival date of the used trucks. The importers should have also processed release certificates before the release of shipments. In a separate letter to Lapeña, lawyer Bienvenido D. Cariaga of Cariaga Law Office, representing PK Industries and Trading Services Inc., appealed for the BOC’s immediate legal action on the entry of used trucks. “Our client would like to bring to your immediate attention that MV Corebright OLV-69 arrived in Davao Port on August 28, 2018. The said vessel is carrying on board used completely built up trucks and special purpose vehicles from Korea to be discharged at the stated date and port,” Cariaga said. He alleged that the importation violated various sections of Executive Order 877-A, Series of 2010. Under Article 2, Sections 3c and 3d, importation of trucks with gross vehicle weight of 2.5 tons and above,

as well as buses 6 tons and above, must be issued CAI by the DTI. Section 5 also states that importation of used engines and parts and components for all motor vehicles must be required authority to import from the DTI. Section 6d indicates that all imported vehicles are mandated to undergo emission tests under the Clean Air Act of 1999. Cariaga said the used trucks were imported without a certificate of roadworthiness and compliance to emission standards that should accompany all imported used vehicles. “Contrary to the above rules, the imported vehicles have been released by the Bureau of Customs, Davao City, without a release certificate from the Department of Trade and Industry. We are respectfully requesting your good office to immediately conduct the legal action on the aforementioned smuggling,” Cariaga said. A copy of the letter was also furnished to President Duterte.

Govt targeting to set up Polo in China By Samuel P. Medenilla @sam_medenilla

MID the expected increase in the number of overseas Filipino workers (OFWs) in China, the Department of Labor and Employment (DOLE) is planning to put up a new Philippine Overseas Labor Office (Polo) in Shanghai. More OFWs are soon expected to head to China with the full implementation of the country’s new memorandum of understanding with the Chinese government this month for the deployment of Filipino teachers. Aside from China, Labor Secretary Silvestre H. Bello III said the DOLE is also targeting to set up a

new Polo in Florida (United States), Berlin (Germany), Osaka (Japan), and Wellington (New Zealand). “We have to immediately consider putting up one [in these areas] so they could help the [Filipino] people there,” Bello told reporters in a previous press briefing. “We would implement once we can provide the necessary manpower,” he added. Currently, China, Germany and New Zealand have no existing Polos. The planned Polos in the US and in Japan will be the second Polos in the said territories once set up. In the United States, the existing Polo is in Washington, D.C., while that in Japan is in Tokyo. Bello said they wanted to put up additional Polos in both countries

due to the large number of Filipino seafarers in Florida and Osaka. Initially, the new Polos were supposed to be set up this year, but Bello said the DOLE is seeking funds to bankroll the initiative. He said the DOLE hopes that Congress will have the necessary allocation in their 2019 budget for this program. The DOLE is requesting for P126 million next year for its labor attaches, welfare officers and other personnel assigned abroad. The Polos are directly under the Office of the Secretary of Labor. It acts as the operating arm of the DOLE for the administration and enforcement of its policies and programs applicable to OFWs.

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N. Korea stages huge parade, holds back on advanced missiles

The World BusinessMirror

China’s trade outlook darkens as Trump threatens total tariffs

HINA’S chances of escaping the trade conflict with the United States with only minor damage to its economy just got slimmer.

PARTICIPANTS march during a parade for the 70th anniversary of North Korea’s founding day in Pyongyang, North Korea, on September 9. North Korea staged a major military parade, huge rallies and will revive its iconic mass games on Sunday to mark its 70th anniversary as a nation. AP

YONGYANG, North Korea— North Korea rolled out some of its latest tanks and marched its best-trained goose-stepping units through Kim Il Sung Square in a major military parade on Sunday to mark its 70th anniversary, but held back its most advanced missiles and devoted nearly half of the event to civilian efforts to build the domestic economy. The strong emphasis on the economy underscores leader Kim Jong Un’s new strategy of putting economic development front and center. Tens of thousands of North Koreans waving brightly colored plastic bouquets filled Pyongyang’s Kim Il Sung Square as the parade began. Pyongyang residents have been training for months for the anniversary and held up the bouquets to spell out words and slogans that can be seen from the VIP viewing area. Kim attended the morning parade but did not address the assembled crowd, which included the head of the Chinese parliament and high-level delegations from countries that have friendly ties with the North. At the end of the two-hour event he strolled to the edge of the balcony with the Chinese special envoy, Li Zhanshu, who is also the third-ranking member in China’s ruling Communist Party. The two held up their joined hands to symbolize the countries’ traditionally close ties, though the absence of Chinese President Xi Jinping could indicate Beijing still has some reservations about Kim’s initiatives. Senior statesman Kim Yong Nam, the head of North Korea’s parliament, set the relatively softer tone for the event with an opening speech that emphasized the economic goals of the regime, not its nuclear might. He called on the military to be ready to work to help build the economy. After a truncated parade featuring tanks and some of its biggest artillery, fewer than the usual number of missiles and lots of goose-stepping units from all branches of the military, the focus switched to civilian groups ranging from nurses to students to construction workers, many with colorful floats beside them. The combining of military and civilian sections is a familiar North Korean parade format. The past two big anniversaries of North Korea’s founding, in 2008 and 2013, did not feature the Korean People’s Army, only the civil defense units, which are officially called “Worker Peasant Red Guards.” Although North Korea stages military parades almost every year, and held one just before the Olympics began in South Korea in February this year, Sunday’s parade came at a particularly sensitive time. Kim’s effort to ease tensions with President Trump has stalled since their June summit in Singapore. Both sides are now insisting on a different starting point. Washington wants Kim to commit to denuclearization first, but Pyongyang wants its security guaranteed and a peace agreement formally ending the Korean War. With tensions once again on the rise, a parade featuring the very missiles that so unnerved Trump last year, and led to a dangerous volley of insults from both leaders, could have been seen as a deliberate provocation. The North also refrained from immediately televising the event, though North Korean media were out in force to film it, deploying booms and—for possibly the first time—drones with cameras. Capital residents unable to attend at the square lined the streets around town to cheer and applaud convoys carrying the troops after they complete the parade duties. Soon after the Sunday celebrations end, Kim will once again meet in Pyongyang with South Korean President Moon Jae-in to discuss ways to break the impasse over his nuclear weapons. The “new line” of putting economic development first has been Kim’s top priority this year. He claims to have perfected his nuclear arsenal enough to deter US aggression and devote his resources to raising the nation’s standard of living. This year’s celebrations also mark the revival of North Korea’s iconic mass games after a five-year hiatus. The mass games involve tens of thousands of people holding up placards or dancing in precise unison and are intended to be a display of national unity. This year’s spectacle—tickets start at just over $100 and go up to more than $800 per seat—also has a strong economic theme. An unofficial translation of its name this year is “Our Shining Nation.” AP

Editor: Angel R. Calso • Monday, September 10, 2018 A5

On Friday US President Donald J. Trump doubled down on his threats to impose higher tariffs on the nation’s goods, saying he’s ready to tax all imports “at short notice.” While economists see the immediate impact of trade tension as limited, the effect on economic confidence may be larger, warned former People’s Bank of China Governor Zhou Xiaochuan. Trade data for August released on Saturday echoed both the cause and effect of the standoff with the US—he surplus with the United States rose to a record, while overall export growth slowed. A lone bright spot may be faster-thanexpected import growth, signaling that domestic demand in the world’s secondlargest economy is holding up for now. “With further large-scale US tariff

measures imminent, Chinese exporters will be hit hard, and China’s GDP growth rate in 2019 is likely to be dented,” said Rajiv Biswas, Asia Pacific chief economist at IHS Markit in Singapore. “If the US keeps ramping up its tariff measures against China, the export sector will face a long, hard road ahead despite government measures to mitigate the impact.” Hours before Trump’s Friday threats, China announced measures to support some of the exporters targeted by the barrage of higher duties. The Ministry of Finance said it will raise export rebate rates for 397 goods, ranging from lubricants to children’s books, meaning that firms shipping such products abroad will pay less value-added tax. The new rates will be effective from September 15, the ministry

said in a statement on its web site. Chinese exporters are feeling the pain as trade tensions between the world’s two biggest economies worsen. Data released on Saturday showed that China’s trade surplus with the US widened to $31.1 billion during the month, according to Bloomberg calculations. The rise came despite exports climbing at the slowest pace since March. Shipments rose 9.8 percent in dollar terms, the customs administration said on Saturday. Imports climbed 20 percent. “Exports to the US grew at a faster pace than the previous month as exporters front-loaded orders before the additional tariffs on $200-billion Chinese goods take effect,” said Gai Xinzhe, an analyst at the Bank of China’s Institute of International Finance in Beijing. Faster US economic growth also pushed up demand, Gai said. The key driver of China’s surging surplus with the US is Trump’s Keynesian stimulus when the economy was already near full capacity, said David Dollar, a former US Treasury attaché in Beijing and now a senior fellow at the Brookings Institution in Washington. “The

import tariffs are not likely to change that,” he said. China, though, is wrestling with a policy-induced economic slowdown that’s collided with uncertainties over the impact of the trade war. That’s prompted leaders to ease their campaign to curb debt as they seek insurance against the risk of a future economic downdraft. Despite a shift to policy easing, falling export growth will exert increasingly stronger pressure on Beijing, said Lu Ting, chief China economist at Nomura International Ltd. in Hong Kong, in a note Saturday. Because value-added exports contribute about 10 percent of China’s GDP, the incoming export slowdown indicates it may take longer for China’s growth to recover, he said. In the event of an all-out trade war, China could be hit harder by a change in market sentiment than a direct impact from tariffs, the PBOC’s Zhou said in an interview with Bloomberg Television. “People may become nervous,” he said. “Nobody really knows. Suddenly there is a trade war. They may change their mind in terms of stock-market investment.” Bloomberg News

US lacks leverage as big assault on Syrian enclave looms

ASHINGTON —Despite dire US warnings and fears of a humanitarian disaster, the Trump administration has little leverage to stop Russia, Iran and Syria pressing ahead with a massive military assault against Syria’s northwest Idlib province. Washington has threatened military action in case of a chemical weapons attack, but its mixed messaging on retaining a US presence in Syria and a cut in aid has diminished its already limited influence over the sevenyear conflict. So the administration, which has criticized former President Barack Obama for his inaction on Syria after the war started in 2011, risks appearing powerless to prevent the three nations’ plan to retake Syria’s last rebel-held area. It’s an operation that many warn will cause major bloodshed among a vulnerable population of 3 million people. And on Saturday the Syrian government and Russian warplanes targeted the province’s southern edge in what activists described as the most intense air strikes in weeks. More than 60 air raids killed at least four civilians in southern Idlib, according to the Syrian Observatory for Human Rights and rescue workers. While the new US special envoy for Syria said this week that America will stay in Syria until the complete eradication of the Islamic State group, there’s little assurance that President Donald J. Trump won’t again seek the withdrawal of the roughly 2,000 US troops in the country. And in a sign of the administration’s shrinking commitment to Syria, it has pulled more than $200 million in stabilization funding for liberated areas, telling other nations they should step up to pay. A summit in Tehran on Friday between Russian President Vladimir Putin, Iranian President Hassan Rouhani and Turkish President Recep Tayyip Erdogan was seen as a chance for a diplomatic solution before a full-scale assault on Idlib. The three nations are all tacitly allied against the Islamic States and in support of a unified, stable Syria, but have differing views of how to achieve those ends. After Friday’s talks, the United Nation envoy for Syria told the UN Security Council there were indications that the three leaders intend to continue talking to avoid a catastrophe. But above all, the summit highlighted the stark differences among these allies of convenience, with Putin and Rouhani opposing Erdogan’s call for a cease-fire. As they discussed the fate of Idlib, US Ambassador to the UN Nikki Haley was talking tough in New York, telling the Security Council that the United States would consider any assault on the province as a “dangerous escalation” of the conflict that has already claimed more than 400,000 lives and forced more than 5 million Syrians to flee the country. “If [Syrian President Bashar] Assad, Russia, and Iran continue, the consequences will be dire,” said Haley, who was chairing the council meeting. “The Assad regime must halt its offensive...Russia and Iran, as countries with influence over the regime, must stop this catastrophe. It is in their power to do so.” Those remarks capped a week of rising US rhetoric opposing the Idlib operation. On Monday Trump tweeted: “President Bashar al-Assad of Syria must not recklessly attack Idlib Province. The Russians and Iranians would be making a grave humanitarian mistake to take part in this potential human tragedy. Hundreds of thousands of people could be killed. Don’t let that happen!” A day later, Secretary of State Mike Pompeo expanded on the tweet, and renewed calls for the conflict to be resolved through the UN-led Geneva Process, which has been stalled for years. And on Thursday the man Pompeo chose to be his point-man on getting the Geneva process back on track, veteran diplomat James Jeffrey, reiterated Trump’s message, saying the US would use all the “tools” it has to respond to a chemical attack. AP

The Regions

Monday, September 10, 2018 • Editor: Dennis D. Estopace

BusinessMirror

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Govt plans to take over electric co-op in Marawi By Lenie Lectura

@llectura

HE head of the National Electrification Administration (NEA) said Malacañang is set to issue an order for the takeover of an electric cooperative in Marawi City.

“There’s a proposed EO [executive order] submitted by the Office of the President for the government takeover of Lasureco [Lanao del Sur Electric Cooperative],” NEA Administrator Edgardo R. Masongsong said. “ That’s a decision reached by a committee composed of the DOE [Department of Energy], DOF [Department of Finance] and others.” A five-month battle between government troops and Islamic

State-inspired militants has razed Marawi City. Masongsong ex plained the issu a nce of a n EO is neces sary because “the Marawi siege occurred.” “Marawi is under Lasureco. Its debts will either be condoned but subjected to a law,” he added. “Definitely, there will be additional budget for that.” Lasureco, which operates within the area served by the Agus hydroelectric power complex,

BSP to formally launch scheme to enhance credit in Dinagat Island

HE establishment of the Dinagat Island Credit Surety Fund (CSF) is set to begin with the signing of a memorandum of agreement (MOA) on Tuesday. A statement by the Bangko Sentral ng Pilipinas (BSP) said the MOA would be signed by Monetary Board Member V. Bruce J. Tolentino and Dinagat Island Provincial Gov. Glenda B. Ecleo. The BSP said two more CSFs are expected to be launched before the year ends: one in the province of Ifugao and the other in the city of Tacurong, Sultan Kudarat. The BSP considers the signing of the MOA on September 11 as a milestone in Dinagat Island as it’s the first in the Caraga region (comprised of the provinces of Agusan del Norte, Agusan del Sur,

Surigao del Norte, Surigao del Sur and Dinagat Island). Initiated by the BSP in August 2008, the CSF is a credit-enhancement scheme designed to increase the creditworthiness of cooperatives, businessmen and micro, small and medium enterprises (MSMEs) that are encountering difficulties in getting access to bank credit due to lack of acceptable collaterals and credit information. The CSF pools cash contributions from participating cooperatives, local government units and partner institutions, which will then serve as security for loans extended by banks to MSMEs in lieu of acceptable collaterals. The BSP added that as of August 16, cooperatives pledged to

contribute an aggregate amount of P2.1 million to the Dinagat Island CSF. The provincial government has initially pledged P3 million. The Development Bank of the Philippines and Land Bank of the Philippines are also expected to put up their counterpart contributions to the Dinagat Island CSF. The CSF Program has been established in 32 provinces and 20 cities nationwide. Meanwhile, the rural banking industry posted growth as of endMarch, with the industry’s assets expanding by 8.3 percent to P216.7 billion funded by the 6.7-percent growth in deposits, which has reached P154.8 billion. Industry capital adequacy ratio stood high at 19.1 percent, return on equity stood at 7.1 percent,

while annualized net profit was reported at P2.9 billion at endMarch 2018, according to the BSP. Rural banks continue to support countryside development and growth of retail banking through financing of rural communities. The BSP said the industry outlook of rural banks remains positive. Based on the preliminary results of the Banking Sector Outlook Survey, the top 3 strategic priorities of the rural banks over the next two years are to grow the business, protect the bank and to optimize available technology. These strategies are expected to enable rural banks to provide a wide range of innovative financial products and services appropriate to the needs of the local communities. Rea Cu

has about P10 billion in debt as of last year. Masongsong said the NE A had earlier set aside P84 million to reconstruct the distribution lines connecting to Lasureco customers. Aside from Lasureco, Masongsong cited other debt-ridden ECs that need financial assistance. T hese inc lude Baselco (Basilan Electric Cooperative), Suleco (Sulu Electric Cooperative), Tawelco (Tawi-Tawi Electric Co-

operative) and Maselco (Masbate Electric Cooperative). “Because of the passage of the Bangsamoro Organic Law, it’s stated there the Bangsamoro government will have control and supervision over ECs,” Masongsong said. “It’s not that the private sector can no longer come in, but they will have the power to decide if they want or not. The IRR [implementing rules and regulations] will state what will be the role of NEA.”

Kadamay occupation of Bacolod housing site earns Ejercito’s ire

ACOLOD C I T Y— Sen ate Housing Committee Chairman Joseph Victor G. Ejercito on Sunday slammed urban poor group Kalipunan ng Damayang Mahihirap after some 1,000 Kadamay members occupied the housing site for uniformed personnel in Barangay Felisa, Bacolod City, on August 30. “What they did won’t help,” Ejercito said in an interview here. “It could actually make things worse.” Ejercito visited the housing project of the National Housing Authority (NHA) in Barangay Felisa with local city officials on September 7. Kadamay cited as the reason for their action Joint Resolution 2 signed by President Duterte on

May 9, authorizing the NHA to award the unoccupied housing units of uniformed personnel to qualified beneficiaries. However, all the 1,498 housing units of Ciudad Felisa, an Armed Forces of the Philippines/Philippine National Police (AFP/PNP) housing project, have already been awarded to soldiers, police, firemen and jail personnel. Ejercito said units in Barangay Felisa that will not be taken by uniformed personnel will be distributed by the NHA to qualified beneficiaries. He added these units are not for free. He added the amortization will also be used to further build government housing projects. Claudeth Mocon-Ciriaco

Banking&Finance BusinessMirror

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BTr: July subsidies rise 92.5 percent to ₧32.47 billion

By Rea Cu @ReaCuBM

UBSIDIES made by the national government for July reached P32.470 billion, 92.5 percent higher than the P16.867 billion made in the same month last year. The latest data from the Bureau of the Treasury (BTr) showed the Philippine Health Insurance Corp. (Philhealth) received the biggest amount at P27.687 billion, an expansion of 83.1 percent compared to the P15.114 billion allotted to the agency in the same month in 2017. The Land Bank of the Philippines (LandBank) was the secondhighest recipient of subsidies for the month, at P2 billion. The bank handles the conditional and unconditional cash transfers provided by the government to various sectors like the Pantawid Pasada Program for jeepney operators, among others.

T he t h i rd-big gest subsidy recipient is the National Irrigation Administration (NI A) at P1.999 bi l l ion, r i si ng by 104.3 percent from P978 million last year. The total subsidy made by the government for the seven-month period reached P100.214 billion, higher by 33.4 percent compared to the P75.086 billion made from January to July in 2017. Other agencies that received subsidies below the billion-peso mark in July are the Light Rail Transit Authority with P6 million; the Philippine National Railways with P23 million; the Aurora Pacific Economic Zone and Freeport

Perspectives

Getting up to speed on the new mobility

HE automotive industry is speeding toward a new era marked by electric-powered vehicles, autonomous vehicles and shared mobility. Even as global sales tick downward, individual vehicles will be used more intensively, spending less time parked and more time on the road, transporting people and goods in a growing number of ways. For automotive chemical companies, in particular, the new mobility will mean a dramatic shift in product portfolios, clients, end-users and business models to address an industry ecosystem that’s becoming larger, more dynamic and far more interconnected. How far, how fast and in what direction? ARE we there yet? The signs of a revolution in the global automotive industry are unmistakable. The rise of electric vehicles, autonomous vehicles and shared mobility services cannot be denied. The only question is how and where these developments are taking us in an increasingly urbanized, technology-dependent and mobile world. On the one hand, sales of electric and alternative fuel hybrid vehicles are expected to steadily increase, especially in China where tougher regulations are creating huge markets for low-emission transportation. Global automotive OEMs have already pledged a total investment of $90 billion for electric vehicles, and that figure continues to rise. Ford Motor plans to double its electrified vehicle spending as part of a major investment initiative for batteries and electric cars. Daimler has said it will spend at least $11.7 billion to introduce 10 pure electric and 40 hybrid models, and that it intends to electrify its full range of vehicles, from commuter vehicles to heavy-duty trucks. Six Volvo will electrify its entire vehicle line by 2019, with five all-electric models scheduled to roll out from 2019 to 2021. On the other hand, we need to keep in mind that these growth rates are calculated from a relatively small base. Yes, over 2 million electric vehicles are on the road today, but that still makes up less than 1 percent of the total number of vehicles in use worldwide. The rise of autonomous and shared vehicles will be equally disruptive and complex. In KPMG’s 2018 global survey of automotive executives, over 70 percent of respondents said that traditional public transport solutions could be replaced by on-demand autonomous capsules within 10 years. In the US alone, vehicle ownership could drop as much as 43 percent due to the rise of self-driving cars, and US auto sales might drop by 40 percent over the next 25 years with the growth of shared-driverless cars. However, as with electric vehicles, consumer adoption rates for autonomous and shared vehicles can differ significantly according to demographics, region, economic factors and culture. For example, carsharing start-ups in emerging markets are growing at a faster rate than their predecessors in established markets, with services now available in 41 cities. But in the US, a recent survey of car owners showed that 67 percent of respondents prefer driving their own cars over using ride-hailing apps, and 63 percent are not interested in trading their vehicles for shared-mobility rides—even if the rides are free. So are we there yet in terms of electric, autonomous and shared vehicle revolution? No, not yet. As with most revolutions, the first steps are small. But clearly it’s only a matter of time, and as this revolution gathers speed, chemical manufacturers need to keep pace with industry changes—or be left behind. The excerpt was taken from the publication entitled REACTION Magazine: 26th Edition. © 2018 R.G. Manabat & Co., a Philippine partnership and a memberfirm of the KPMG network of independent member-firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the Philippines For more information on KPMG in the Philippines, you may visit www.kpmg.com.ph.

Authority with P5 million; the Cultural Center of the Philippines with P24 million; the Credit Information Corp. with P13 million; the Center for International Trade Expositions and Missions with P52 million; the Lung Center of the Philippines with P20 million; the National Kidney and Transplant Institute with P49 million; the Philippine Coconut Authority with P275 million; and the Philippine Children’s Medical Center with P109 million. Also on the list are the Philippine Fisheries Development Authority with P20 million; the Philippine Heart Center with P72 million; the Philippine Rice Research Institute (Philrice) with P41 million; the Philippine Sugar Corp. with P32 million; the Philippine Institute for Development Studies at P11 million; the Philippine Institute of Traditional and Alternative Health Care at P18 million; the People’s Television Network Inc. with P6 million; the Southern Philippines Development Authority with P4 million; and the Zamboanga City Special Economic Zone Authority also with P4 million.

Monday, September 10, 2018

DOF starting workshop series to gather base data for TradeNet T

H E D e pa r t me nt of Fi nance (DOF) will start a series of workshops with various trade regulator y government agencies (TRGAs) this mont h on t a r if f h a r mon i zation and classification, to gather the base data needed to run TradeNet.gov.ph. According to DOF Undersecretary Gil S. Beltran, who is the DOF’s anti-red tape czar, the workshops aim to gather 42 government agencies that regulate trade products and to harmonize their tariff codes. This is part of the government’s initiatives to facilitate trade and ease of doing business in the country. T he workshops w ill be facilitated by the Tariff Commission (TC) in coordination with the DOF Inter-Agency Business Process Interoperability (IABPI) Team, and the Bureau of Import Service of the Department of Trade and Industry. The workshop series will run weekly for five days from September to October at the TC office in Quezon City. “The results of the workshops will be used as base data of the Tariff Code and Commodities that will be used by TC, Bureau of Customs and the regulatory agencies on TradeNet,” said Beltran in his report to Finance Secretary Carlos G. Dominguez III during a recent DOF Executive Committee meeting. The harmonization of trade commodity codes was one of the agreements arising from the April 2018 meeting of the National Single Window (NSW) Steering Com-

BELTRAN mittee, which Dominguez heads. Members of the NSW Steering Committee are the secretaries of the DTI, Department of Agriculture, Transportation, Interior and Local Government, and Health; the governor of the Ba ngko Sent ra l ng P i l ipi n a s (BSP), and the director general of the National Economic and Development Authority (Neda). The NSW Steering Committee is part of the NSW Task Force for Cargo Clearance created via Executive Order 482 issued in 2005. The NSW Task Force consists of the steering committee and a technical working group headed by the customs Commissioner. TradeNet, the government’s digital import and export permit platform, aims to link 76 TRGAs t hrough a common d atabase and shorten the processing of transactions for import and export clearances. The system is

expected to minimize the costs of doing business and cut the processing time for the issuance of import and export permits. The platform will also serve as the Philippines’s link to the Asean Single Window (ASW ), a regional initiative that aims to speed up cargo clearances and promote economic integration by enabling the electronic exchange of border documents among the organization’s 10 member-states. Indonesia, Malaysia, Singapore, Thailand and Vietnam are already using the ASW to exchange information on customs clearances. Beltra n sa id t hat t hrough TradeNet, traders may apply online for import and export permits for commodities, such as rice, sugar, used motor vehicles, chemicals (toluene), frozen meat, medicines (for humans, animals or fish) and cured tobacco. Last year it was reported that the software for the TradeNet was already delivered by the Department of Information and Communications Technology to the DOF in preparation for going onstream by the middle of this year. In 2016 the DOF secured a P21.5-million grant from the German development bank Kf W Group to help implement TradeNet. TradeNet aims to connect 66 agencies and 10 economic zones involved in approv ing import and export permits and other trading requirements. Rea Cu

Green Monday BusinessMirror

A8 Monday, September 10, 2018

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

High food prices, scarcity highlight need for regl biodiversity cooperation

Story & photo by Jonathan L. Mayuga @jonlmayuga

ARTICIPANTS at a regional forum hosted by the Philippines on September 4 underscored the importance of regional cooperation to protect and conserve biodiversity— basically the source of food, medicine and raw materials for shelter—to combat food scarcity and soaring prices in the region. This was highlighted at the news conference during the “Asean Biodiversity Heroes’ [ABH] Regional Forum: Philippines” held at a hotel in Makati City. The conference tackled the issues of the soaring food prices in the Philippines, including hot chili, locally called as sili, which soared to around P1,000 a kilogram, and the decision of the Philippine government to import galung gong (round scad) to combat the soaring price of what is considered t he poor man’s fish in the countr y.

overfishing, prompting the government to resort to importation to combat price increase. However, he lamented that the fish being imported by the Philippines may be from the same fish stock the DA hopes to protect by declaring a round scad fish ban or closed fishing season. “I think there is the scarcity of fish, generally, in the Philippines. But the fish we import, we get from China. And China may have gotten it from our own waters, possibly from the spawning ground in the Spratlys,” he said.

Alcala: There’s scarcity of commercial fish

No control over ‘galunggong’

NATIONAL Scientist Dr. Angel C. Alcala, a former secretary of the Department of Environment and Natural Resources (DENR) and who pioneered coastal-resource management in the country, believes the Department of Agriculture (DA) is on the right track in declaring a fishing ban or closed fishing season of galunggong to allow the species to spawn and replenish the depleted fish stock. He said coastal-resource management is not the proper strategy to use because round scad moves in the high seas. Named among the 10 Asean Biodiversity Heroes in 2017, Alcala was a resource speaker in the forum along with the ABH from Indonesia and Cambodia.

Imported ‘galunggong’ taken from PHL?

ALCALA believes there is a scarcity of commercially viable fish in the Philippines. He noted that there are more than 3,000 fish species in the Philippines, and round scad is just one of the many species that are getting harder to catch because of

UNFORTUNATELY, A lcala believes the Philippines does not have complete control over fishresource scarcity, particularly of round scad, and that coastalresource management is not the proper strategy to use. “As I said, round scad moves in high seas. Round scad is not farmed so we have no control. It is swimming around in the high seas. If you farm it, you can control it,” he said. Asked for his recommendation, Alcala said: “Some areas should be off-limits and open only at certain times.”

Biodiversity-friendly enterprises

DIRECTOR Crisanta Marlene Rodriguez of the DENR’s Biodiversity Management Bureau (BMB) said that, as a food-security measure, the office is currently implementing a program promoting biodiversity-friendly enterprises in the countryside. “The activities of these enterprises depend on our resources, either for good or services. So we are helping out our local farmers through our people’s organizations. Hopefully, the biodiversity-

Bicol mining sector contributes 2.78% to regional GDP–PH-EITI

HE mining industry in the Bicol region contributed a substantial 2.78 percent to the 2016 regional gross domestic product (GDP), according to the Philippine Extractive Industry Transparency Initiative (PH-EITI). PH-EITI delegates conducted an inspection tour of Masbate as part of its Roadshow 2018, w ith the theme “Mov ing Beyond Transparency: Integrating Extractives Disclosure and Dialogue in Local Development.” The inspection team toured Masbate Gold Project’s mine site in Aroroy, Masbate. MGP, a key member of the extractive industry in Bicol, is made up two companies—Filminera Resources Corp. and Philppine Gold Processing and Refining Corp. Filminera is the only mining company in the Bicol region that participates in the initiative since

its implementation in the country. PH-EITI executives held their third nationwide road show, aimed to reach 600 participating companies in 13 regions—including Bicol, Davao, Cebu, among others. The EITI is a global standard that promotes transparency and accountability in the extractive sector. The Philippines committed to participate in the EITI through Executive Orders 79 and 147. The EITI promotes transparency and good governance in the Philippines’s extractive sector. In its recent report, EITI said that the contr ibution of the mining industry at the regional level can be considerable at 2.78 percent of Bicol ’s regional GDP. At the national level, the mining industry’s contribution is relatively minimal. The EITI encourages mining, oil and gas companies to disclose what they pay to the government.

ACTRESS and biodiversity advocate Antoinette Taus gestures as she introduces the Asean Biodiversity Heroes (ABH)—(from left) Alex Waisimon of Indonesia, Dr. Angel Alcala of the Philippines and Sophea Chinn of Cambodia—during the ABH Regional Forum held at a hotel in Makati City last Tuesday.

friendly enterprises [program] will be able to meet the requirements in terms of food security in the Philippines,” Rodriguez said.

Indonesia Waisimon: Work together

BIODIVERSITY Hero Alex Waisimon from Indonesia said a good message for participants in the forum is for the Asean to work together, underscoring the interconnectivity of the Asean member-states. He said participants at the forum should tackle the problems besetting the region’s rich biodiversity. “How we can maintain it, and not only talk and talk. Not only lip service, but hard work. We need to work and do it together,” he said.

Chinn: Food security

CAMBODIA’S Sophea Chinn, a young government official who nurture’s the youth’s interest in wildlife through photography, said food security is a major concern for Cambodia. Like the Philippines, Cambodia is experiencing food-production problems, and most of the fish in Cambodia come from inland water bodies, as its people also prefer to eat freshwater fish. “The food we get from our marine areas is lesser. But most Cambodian people eat freshwater fish. Fish from freshwater are going down, that is why the govern-

ment is promoting fish farming,” he said. As a solution, he said, the government is also into development of more marine-protected areas (MPAs), where farmers and fishermen can catch fish while setting aside areas for conservation.

Protect biodiversity, protect food sources

EN V IRONMEN T Undersecre tary, for Policy, Planning, International Affairs and foreign-assisted projects Jonas R. Leones, meanwhile, said the high price of basic goods, like food, including fish, could not be attributed to biodiversity alone. He agreed with Alcala that protecting coastal waters alone will not really solve soaring food prices. Nevertheless, he said protecting and conserving biodiversity means the Asean is on the right track “ because it addresses degradation and pollution.” “With protecting biodiversity, we protect our food sources, but not the high prices. It is critical that we continue our effort in collaborating for the protection of the environment. So that at the end of the day, these will be developed and sustained,” he said.

Work at regional level

ACB Executive Director Theresa Mundita S. Lim said the intervention and responses at the confer-

ence show the interconnectivity in biodiversity. “The response of Waisimon emphasizes regional effort. This is important for the Asean, as Dr. Alcala mentioned that fish migrate and move around our waters. Each country may have an effort at the local or even national level but there is an opportunity to work at the regional level,” she said. According to Lim, a former director of the DENR-BMB, the ACB can coordinate with the governments of Asean member-states on the protection of marine resources in the Asean. “Land-ocean connection…. That the effort should not be confined in the marine or coastal area, but also in the terrestrial area, to reduce the impact of land-based pollution,” she said. “If we work together, with all of these solutions [proposed], we will have a higher chance of fixing scarcity of our commercially important fisher y resources,” Lim added. “It is also important to work across sectors. We cannot work alone within the biodiversity sector or development sector alone. We need to recognize that biodiversity underspin all these needs. Our program now is mainstreaming biodiversity in the marine and fishery sector, and this is supported by the countries in the Asean during our last meeting in Singapore,” she explained.

GIVE STRONGER PROTECTION TO MUNICIPAL WATERS–GROUPS

NVIRONMENTAL groups are opposing the opening of municipal waters to commercial fishers in order to give priority access to small fisherfolk and prevent further collapse of fishing grounds. “ O u r m u n i c i p a l w a t e r s a re t h e spawning and nursing grounds of fish. If we protect it, we can ensure the continuous supply of fish, which will provide long-term seafood security, especially for our municipal fishers who depend on the sea for their food and livelihood,” said Marianne Pan Saniano, marine scientist from Oceana Philippines. Under Republic Act (RA) 10654, or the amended Fisheries Code, municipal waters are areas covered within 15 kilometers from the coastline, including offshore islands. Only fishing boats weighing less than 3.1 gross tons, which use nondestructive, passive gears such as hook and line, and gill nets are allowed to fish within municipal waters. Saniano added that municipal fishing grounds would be further exploited if bigger commercial fishing vessels—which are almost three times bigger than the municipal boats—would be allowed to fish on municipal waters.

Juveniles or fish that are yet to spawn and reproduce would also be caught with the bigger fishing vessels’ highly efficient gears. According to the Bureau of Fisheries and Aquatic Resources (BFAR), 10 out of the 13 major fishing grounds in the Philippines are already overfished. Recently, local politicians in Cebu were quoted to have said that commercial fishing vessels weighing 4 to 8 gross tons would be allowed to fish within 10.1 kilometers to 15 km from the shorelines of any local government units (LGUs). Lawyer Gloria Estenzo Ramos, vice president for Oceana Philippines, said protecting municipal waters is essential to food security, restoring the health of marine ecosystems and protecting the livelihoods of small-scale fisher folk, pursuant to the Constitution and the amended Fisheries Code. “Our oceans and marine habitats are already overfished, due to the prevalence of illegal fishing and lack of proper management. The [BFAR] and coastal local government units are mandated to have science-based policies and rules on harvest control and reference points, have

catch data and assess the state of each municipal waters and fishing grounds, apart from strictly enforcing our fisheries laws,” Ramos said. Ramos emphasized that RA 10654 also requires vessel monitoring measures (VMM) to be installed in all vessels weighing 3.1 gross tons and above, as a strong measure to stop and deter illegal, unregulated and unreported fishing. “The Department of the Interior and Local Government issued on April 23 this year the implementing guidelines to all coastal LGUs to strictly regulate and monitor their municipal waters, and craft and amend their respective ordinances to integrate the strong features of RA 10654. How many of our coastal LGUs have complied with such directive? It is only the province of Cebu, which has amended their ordinance and integrate salient features of RA 10654, to our knowledge,” Ramos added. Lawyer Liza Osorio of the Philippine Earth Justice Center said that policies that open municipal waters to commercial fishing should comply with the preconditions set by the amended Fisheries Code.

Panay forest, climate-protection project lauded

FFICIALS of the Department of Environment and Natural Resources lauded a forest and climate-change project that resulted in the sustainable management of resources in areas surrounding a mountain range on Panay Island. Because of the success of the project, the DENR is hoping to scale up or expand the project nationwide. Environment Secretary Roy A. Cimatu, in a statement, said the recent ly completed Forest and Climate Protection Panay Project (ForClim)—an eight-year initiative funded and implemented by the German and Philippine governments—is worth replicating in other parts of the country. “ForClim has proved successf u l in integ rating biodiversit y con s e r v at ion , c l i m ate - c h a n ge mitigation and poverty alleviation through sustainable management of forest resources. With the right support from our partner organizations, hopefully, we can bring this kind of success to other areas in the countr y in the near future,” Cimatu said. The environment head issued the statement after the implementation of ForClim’s second phase was finally completed this year. A s i mple c los i ng ce re mony held recent ly at the DENR centra l of f ice in Quezon Cit y was led by Env ironment Undersecretar y for Polic y, Planning and Inter nationa l A f fairs Jonas Leones, and Cimatu’s Chief of Staff Undersecretar y Rodolfo Garcia. ForClim II, which ran from June 2014 to February 2018, was financed through a grant of €5.95 million from the German Ministry for the Environment, Natural Conservation and Nuclear Safety, with a local counterpart funding of €250,000 from the DENR. The first phase was implemented from 2010 to 2014. Just like the first phase, ForClim II was implemented by German development agenc y Deutsc he Gesellschaft für Internationale Zusammenarbeit, or GIZ, and the DENR. The project covered the Panay Mountain Range and 23 adjacent municipalities. T h r o u g h o ut it s i m p l e m e n t at ion, For C l i m I I ef fec t ive ly managed and gover ned over 30,0 0 0 hec t a res of forest a nd connected systems of protected a rea s i n Pa n ay. It made sure that Panay Mounta in R a nge, g iven its globa l ly significant biodiversity, was protected, and the natural resources in the adjacent areas were managed and used by local communities in a sustainable and climatefriendly manner. The project introduced innovations and approaches in forest land-use planning, including the establishment of critical habitats, forest conservation and management, forest rehabilitation, agroforestry, and income generation for local communities. It followed a conservation and development approach providing incentives for sustainable resource management, such as agroforestry, upland agriculture and use of bioenergy. ForClim II also worked toward the protection of natural forests and rehabilitation of degraded forests, resulting in reduced carbon emissions of 453,353 tons from 2011 to 2017. The project had trained more than 813 people, hired 725 forest guards and produced forestprotection agreements covering 18,732 hectares. In accepting on behalf of the DENR the document containing the project’s outputs, Garcia said those accomplishments “encapsulate” the department’s Program for Environment and Natural Resources for Restoration, Rehabilitation, and Development (PRRD). PRRD, which matches the initials of President Rodrigo Roa Duterte, is a five-year road map that aims to protect the country’s natural resources from naturally occ u r r ing a nd hu ma n-induced degradation. Jonathan L. Mayuga

Biodiversity Monday BusinessMirror

Asean Champions of Biodiversity Media Category 2014

Monday, September 10, 2018

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

Where have our beautiful corals gone?

By Jonathan L. Mayuga @jonlmayuga

HE Philippines used to boast of over 27,000 square kilometers of coral areas. Back then, the country’s coastal and marine areas are teeming with reef fishes and other marine life, making it one of the most mega-diverse countries in the world. Destructive development projects and fishing methods, including the use of trawls, dynamite and cyanide have caused enormous damage to the marine ecosystem, including its corals. Worse, back then, corals were harvested and turned into souvenir items and sold to tourists. Despite laws preventing similar kind of abuses to the marine environment, including laws against illegal fishing and to protect and conserve wildlife, the Philippines continue to lose its precious corals.

Poor law enforcement

“VERY unfortunate,” was the description of Director Crisanta Marlene Rodriguez of the Biodiversity Management Bureau (BMB) of the Department of Environment and Natural Resources (DENR) on the recent the illegal harvesting of corals that ended up as souvenirs. Rodriguez, interviewed by the BusinessMirror on September 4 at the sideline of the Philippine leg of the Asean Biodiversity Heroes Regional Forum held in Makati City, was referring to the recent confiscation by the National Bureau of Investigation from a suspected smuggler of 1,800 pieces of live hard and soft corals and three giant clams worth around $54,000, or around P2.7 million. T he i l lega l act iv it y wou ld have gone unchecked had the so c i a l - me d i a p ost b y you n g biodiversity advocate, Romina Lim, did not go viral. Lim is a daughter of Asean Centre for Biodiversity Executive Director Theresa Mundita S. Lim. Law enforcers probed into the “exotic souvenirs” at a shop in Long Beach, Washington. They were found to have come from the Philippines. “It only reflected on our [inadequate] capacity to prevent to fully enforce the law,” Rodriguez admitted. She said such illegal activity would not have been possible

without community having been in cahoots with those behind the illegal wildlife trade. “We at the DENR-BMB will continue our efforts, intensify our campaign to highlight the value of our natural resources to educate the public,” she said.

Zero-percent excellent reefs

THE continuing destruction of the Philippines’s corals and the unhampered harvesting of its marine resources have caused enormous damage to the country’s marine ecosystems leading some scientists to believe that it has completely lost the last remaining patches of so-called excellent coral cover because of this kind of illegal activity. “At this point, there is already zero-percent excellent reefs in the country and with impending global threats, like climate change, we are faced with even a bleaker future,” AA Yaptinchay of the Marine Wildlife Watch of the Philippines said. Sought for reaction on the recent confiscation of the corals, which were being showcased as “imported” from the Philippines, Yaptinchay said through Messenger on August 28 that many people remain oblivious to the importance of corals; that selling corals and other habitat-forming species is illegal and worse, they will lead to the destruction of our islands.

Natural defense

“WITHOUT coral reefs, our coasts will be prone to storm surges and cause erosion, while a major source of our food supply will be lost, causing misery and more poverty to the nation,” Yaptinchay explained. “Moreover, our tourism pride of white-sand beaches, coral islands and surfing will eventually cease to exist.” Yaptuinchay said it took thousands of years for our coral reef communities to develop. In the same fashion, it will take a long

LIVE staghorn coral provide much-needed shelter to fishes in Palawan. Corals provide vital homes to many of the ocean’s shallowwater fish and invertebrates. GREGG YAN

time for them to recover from the destruction. “It is the responsibility of each and every Filipino to ensure that our coral’s communities and coral reefs are regained, not by subjecting them to more exploitation and destruction, but through protection and conservation. Our very lives depend on it,” he added.

Crime against corals

VINCE CINCHES, ocean campaigner of Greenpeace-Philippines, said the crimes committed against our natural resources, including the corals, is an indicator that they have value, outside of their being a spawning and feeding areas of key marine species in the oceans. Its value, being a spawning and feeding areas of key marine species in the oceans, consequently mean food security for Filipinos, including maintaining the balance within the marine ecosystems, and protection from storm surges and impacts of climate change, and recreational value specific to tourism. “Therefore, there is a need to address the nontraditional cause to the loss of our coral cover: such as poaching and extraction of corals from our waters,” he said. The Philippines’ taking action to protect its marine resources, such as but not limited to corals, is key “since we are at the epicenter of global marine biodiversity,” Cinches said, adding that such biodiversity is also a magnet for

people or organizations whose sole purpose is to profit without thinking of immediate and longterm consequences

Global effect

JIMELY FLORES, in-country science consultant at Environmental Defense Fund, a United Statesbased nonprofit env ironment group, said the continued assault to the country’s marine environment will not only affect Filipinos but other countries, which rely on the health of the Philippines’s oceans as a source of larvae and other marine ecosystems services. In an inter v iew v ia socia l media on August 29, Flores said corals regenerate or grow very slowly, especially the plate and dome - sh aped s pec ies, wh ic h grow on an average of less than a centimeter a year. With the discovery of destructive harvesting of corals, Flores said the illegal activity had taken years, if not decades, of natural regeneration or growth process away from the corals. “Staghorn corals grow the fastest, which is about 3 cm to 4 cm a year. That depends on how big the corals were. We could estimate the minimum number of years we are losing, particularly for the aquarium market. They get the live ones only, and given that there are less than 1 percent coral reefs with an excellent live coral-cover condition, plus the increasing ocean water temperature that is causing most of the coral bleaching,

even a small amount taken away means so much to the ecosystem,” she explained. For the staghorn corals, taking just 10 cm of live coral means at least a year lost to us—for the slow-growing species that grows less than a cm per year, it is even more, she added. More important, the damage extends beyond the coral’s economic values, Flores lamented. “Also lost is our cultural and natural heritage. By now I could already imagine the Philippines without its rich ocean biodiversity pride,” she said.

Shift to best alternatives

HOW do we stop the destruction, especially if there is a big market for a thriving aquarium industry? People can help save corals and seashells by shifting to alternatives. Sought for reaction by the BusinessMirror, Best Alternatives founder Gregg Yan said via Messenger on August 29, that the recent apprehension of a suspected smuggler with thousands of live corals and several giant clams in Bacoor, Cavite, has ignited public furor over the continued trade in protected marine life. Offering his group’s solution, Yan said: “Now is the perfect time to shift to sustainable alternatives to corals and seashells.” He proposed the use of “rubber, resin or polymer. Faux corals are painted and crafted to look real. A shift to them eliminates our need to source corals from the wild.”

The Philippine Marine and Reef Aquarium Society agreed, and asked marine aquarium hobbyists to shift from wild-caught to artificial corals, do proper research before keeping marine animals and participate in activities like coastal clean ups to give back to the sea. An environmental nonprofit organization, Best Alternatives believe that, though legally protected, corals—generally classified as either “hard” or ”soft” depending on whether they form skeletons made of calcium carbonate—are collected for aquariums, jewelry and curio (display) trades. Live hard and soft corals are kept by many aquarium hobbyists but require state-of-the-art equipment and special care to survive. Slow-growing red corals are hewn into jewelry, while plate, staghorn and mushroom corals are collected, dried and bleached for display. Vast numbers of seashells and other invertebrates like sea stars are also gathered, dried and exported to other nations.

Crime and punishment

A CRIME of illegal harvesting or destruction of corals could not be considered just a petty crime. There is a law that imposes a severe penalty for the illegal activity under Republic Act 10654, or the Amended Fisheries Code of the Philippines. The law attempts to prevent the gathering, possession, transport and sale of ordinary, semiprecious and precious corals, except for scientific or research purposes and imposes fines ranging from P500,000 to P10 million. Many seashells like giant clams and tritons are also legally protected, Yan noted. “ The damage wrought by the il lega l trade in cora ls is immense. We’re happy to finally see the fight against the trade taken seriously. This gives hope that as a country, we are taking a stand to protect our precious natural resources,” said Vanessa Vergara, executive director of Reef Check Philippines. “Seashells and jewelry like red coral bracelets and tortoiseshell necklaces can easily be made from alternative materials like hard plastic,” Yan said. “Why flaunt how we can wear rare jewelry when we can take great pride in wearing eco-conscious alternatives? By shifting to more Earth-friendly choices, we can spare our seas from further damage,” Yan added.

PROTECTING THE HABITATS OF NATURE’S LAMPLIGHTERS By Dr. Michael A. Bengwayan Special to the BusinessMirror

Frist of two parts

NE night, alone in my forest farm, The Habitat, in Tublay, Benguet, I fell under the spell of fireflies. They came slowly, lights flickering, chasing away night spirits, sending messages only shadows can decipher. I sat long and hard, many nights after that, reading everything I could about these natures’ lamplighters. The intermittent light of the firefly can function something like an inkblot test, I learned. These blinking bugs reveal their own proclivities and predilections—frequency of flashes, music, rhythm and, yes, color. For many people, fireflies spark sweet memories of childhood in Baguio City’s hills and languid summer nights. I was no exception. When I was little, on summer nights my family and I used to put a straw mat on the ground in front of our house and lie down to watch for fireflies. At that time, despite the lack of material affluence, we enjoyed rural life a great deal, especially seeing fireflies light up in the sky. That kind of beauty was just beyond description.

Rarely seen today

PART of the reason fireflies are associated with childhood for so many people, however, is that they are less often seen today. The Philippines is home to 21,000 insect species, but the number of fireflies has dropped as their habitats have shrunk over the years. No one is working to reverse the trend through research, conservation and promotion of these pixyish night fliers. There is a need for an archipelago-wide survey of fireflies, their habitats and other ecological factors to create a kind of databank that can be used by researchers and environmentalists. State universities and colleges can team up with agricultural and tourism groups to rehabilitate the natural environment of fireflies and to promote ecological tours and firefly viewing.

Firefly viewing

GOVERNMENT agencies, such as the Departments of Environment and Natural Resources, and of Science and Technology and private groups must be urged to have conservation plans to preserve the habitats and breeding grounds of firefly and to organize viewing. In Japan it is estimated that every year the number of domestic residents viewing fireflies is around more than 1 million. The magnificence of

fireflies lighting up the sky can be seen in many of our country’s mountain areas. Hopefully, through the appreciation of such natural wonders, the general public can get to know the importance of conservation and pitch in. Indeed, because of their spectral luminescence, so rarely seen in the everyday world, fireflies tend to be an easy sell.

‘Lightning bugs’

DURING the witching hours of dusk, fireflies, also known as “lightning bugs,” begin to glow in yellow, greenish yellow or orange hues. They can glow for half an hour to five hours at a time either continuously or intermittently. Different species blink for different lengths of time, like the dots and dashes of Morse code. And like Morse code, the flashes are used to communicate, sometimes as a warning to other fireflies and sometimes to catch the attention of a desired mate. Generally, species active in the spring and summer produce flashing lights, while autumn and winter fireflies tend to emit a continuous glow.

‘Lantern’

THE light comes from the “lantern”—technically known as the photophore—on the underside of

the rear part of the abdomen. In the lantern, the chemical compound luciferin and the enzyme luciferase react with oxygen to produce light, which is directed and intensified by reflectors. Male fireflies have two lanterns, big eyes and a thinner body, whereas the females have only one lantern, small eyes and a fatter body. Even the larvae glow. Females lay eggs on moss, wet soil or among fallen leaves.

One-year life span

FIREFLIES have a life span of approximately one year, broken into four stages—the egg (20 days), the larva (10 months), the pupa (seven days to 10 days) and the adult (two weeks to three weeks). They are remarkably adaptable, and different species can be found at different altitudes in the Cordillera region. Between April and June, they are more likely to be found in the plains and hilly areas, and from November to January, it is best to seek them out in higher mountain areas.

Breeding pattern

BREEDING patterns are similarly diverse. The larvae, the stage at which the firefly spends most of its life, are classified into three types based on their breeding environment—

FIREFLIES WIKIHOW CREATIVE COMMONS aquatic, semiaquatic and terrestrial. Of the Philippines’s 76 species identified thus far, 58 are terrestrial. There is only one semi-aquatic species found in the country, Pristolycus kanoi Nakane. It generally inhabits riverbanks and plucks its prey from the surface of the water. It is common in mountains of a low or medium altitude. Aquatic species are only slightly more common; six have been identified worldwide. They live primarily in Asia, and three of them can

be found locallly—Luciola ficta Olivier, Luciola sp. and Luciola substriata Gorham. Terrestrial breeders account for the majority of firefly species. Luciola cerata Olivier is the most common. Fireflies of this species dwell in lowaltitude (under 1,500 meters) mountain areas. Only one species, Pyrocoelia analis Fabricius, can be found in the country’s low-lying coastal plains. A trek into the mountains is required to catch a glimpse of the many other species in the 7,100 islands of the Philippines. To be concluded

A10 Monday, September 10, 2018 • Editor: Angel R. Calso

Opinion BusinessMirror

www.businessmirror.com.ph

editorial

What is the real inflation situation?

E are, just like everyone else, concerned about the rate of price increases. We are more concerned that we have entered a trend commonly known as an “inflationary spiral”. We know that when the words “food” or “rice” are mentioned, Filipinos are interested. However, when rice and “the poor people” are used in the same sentence, it may be a politician looking to be quoted on the newspaper front page. The political quote that caught our attention was, “Food prices jumped by 8.5 percent in August.” We are in the business of not joining the emotional feeding frenzy on any topic—especially when it comes to business or the economy—without trying to fully understand the situation. The inflation rate is based on the prices of a “basket” of goods, including basic commodities, essential purchases and nonessential buying. Then a calculation is made on the amounts of particular items that the “average” Filipino buys. That average is further divided by economic group based on the latest “Family Income and Expenditure Survey” made every three years. For example, “food and nonalcoholic beverages” makes up about 40 percent of household spending, which is higher for the lower groups and less for the wealthier. However, finding the exact items included in the price basket and how much a household spends on various items is like trying to discover Colonel Sanders’s secret recipe for chicken. We looked back at the Philippine Statistics Authority’s “Metro Manila Price Bulletin” for September 1, 2017, and again for September 5, 2018. The prevailing price for dressed whole chicken is actually 13.7 percent higher. The price of “well-milled rice” is P2 a kilo lower and medium sized tilapia is unchanged, according to the PSA market survey. Red onions are the same. Latundan bananas are basically the same. Native tomatoes are 25 percent higher. A kilo of galunggong was surveyed to be the same price as one year ago. We can argue all day about the accuracy of these numbers. But if this data is flawed, then how can any politician stand up and say with confidence—that “Food prices jumped by 8.5 percent in August”? Further, we know as a fact that the increase in the tax of nonalcoholic beverages— meaning soft drinks with sugar—have increased significantly and in the case of the powdered variety by 100 percent in the last 12 months. How much has that contributed to the inflation rate? This administration has no one to blame for the rice supply problem except itself. But here again, we failed to find data on how much of any income group’s expenditure is for their daily rice. Simply saying that for the poor “60 percent of their household budget goes to food” does not give an accurate picture of the situation. Why hasn’t any politician mention that “alcoholic beverages and tobacco” prices are 21.6 percent higher than last year and how much this price increase has affected the poor? How much do these items contribute to the overall inflation rate? Maybe those numbers would not warrant front page headlines. If we are to find solutions to inflation, we need to accurately know the scope and impact of the problem. Fake news showing pictures of Chili peppers selling at P3,000 per kilo is not the answer. Twisting the data to serve a political agenda is not going to help. Not revealing the methodology and data behind the official numbers is simply not right. We deserve better.

Some thoughts on inflation Atty. Jose Ferdinand M. Rojas II

RISING SUN

NFLATION climbed to 6.4 percent in August, a nine-year high according to records. Filipinos who are already struggling to survive are hurting more from the rising costs. And unfortunately for almost everyone, wages aren’t keeping up with the skyrocketing prices. People are, therefore, starting to tighten their belts, limiting their spending and foregoing many “unnecessary” expenses. It may be wise to consider how we should behave during inflationary times, such as what we are experiencing right now. Aside from being bad for ordinary consumers, inflation is also seen as damaging to pensioners, investors, and savers as it decreases the value of interests and dividends, not to mention the original capital.

‘Time to call a spade a spade’ Atty. Lorna Patajo-Kapunan

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Traditionally, there are assets that have shown to hold up better during times of inflation, like commodities, gold, commodity-producing equities (companies in energy and materials sectors), and short-duration bonds. In the face of inflation, personal or household savings as well as national savings drop as there is less money

to save. But even if it takes great effort to set aside some money after paying for basic expenses, everyone must still try to save. Bangko Sentral ng Pilipinas (BSP) Governor Nestor A. Espenilla Jr. insists that “elevated oil prices” and the “unfortunate confluence of cost-push factors” are the reasons transport and power prices are higher. He said: “Much of it has to do with food supply shocks, rice in particular. These warrant more decisive nonmonetary measures to fully address.” The government, therefore, must act fast to help the poor and install programs to soften the effects of escalating prices. Aside from this, monetary and trade policies certainly need to be looked into and, hopefully, revised. Speedy action is important as companies, even big ones like Nestlé and not just the ordinary citizens, are already feeling the pain. The manufacturing giant has warned that it may have to shut down its

LEGALLY SPEAKING

CONOMISTS quoted by broadsheets and social media invariably agree that inflation at 6.4 percent reached a nineyear high this August. Some attributed this to increases in the prices of food, utilities, petroleum products, or domestic supply bottlenecks which resulted in higher prices of food items like rice, meats, vegetables, fish and even the once lowly galunggong. Nonfood inf lation has been blamed on higher electricity rates and increases in pump prices of oil. The peso weakness (which has remained at a 12-year low of 53 to the dollar) also contributed to price pressures. The country’s economic managers claim that the surge in global oil prices has been the main driver of inflation. There is, of

course, the continuing bad weather, which has caused shortness in supply of basic commodities, principally rice, compounded by the age old problem of hoarding by rice cartels, garlic cartels and all sorts of cartels. And the mother (father) of all our miseries—TRAIN 1, which has been blamed by all for the increase in prices of everything.

If the government were to do a reality check, it should be apparent (without need of a Harvard/UP Economics Degree) that we are now facing an economic crisis in the level of national emergency. I do not mean the “State of National Emergency on account of Lawless Violence” referred to in Presidential Proclamation 55 Series of 2016 declared by President Duterte to enable him to deal with the threats to national security in Mindanao. We do not need another such proclamation, even if Joma Sison and Sen. Sonny Trillanes become a constant pain in the “posterior” of our President. We need to look at Section 17, Article XII of the 1987 Constitution on National Economy and Patrimony, which says: “In times of national emergency, when the public interest so requires, the State may, during the emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of

coffee plant in Cagayan de Oro “due to TRAIN and supply woes.” This happens after a version of TRAIN 2 (Tax Reform for Attracting Better and High Quality Opportunities) was passed in Congress in its second reading last week. We can’t ignore the fact that the peso has also been performing weakly, and that the nation is in the middle of a rice crisis. The media is, likewise, playing a big role, broadcasting the experiences of ordinary citizens having to travel long distances just to buy rice at cheaper prices. This may plant the seed of panic, and that is the last thing that we want. The government obviously has a lot on its plate right now and, needless to say, it would be best to set aside politicking for the time being and focus on helping the people survive. Review the policies and make people accountable for the blunders. Maybe if we start from there the people may start trusting the administration again.

any privately owned public utility or business affected with public interests.” The country needs a president with strong political will and with public interests at heart to declare “under reasonable terms prescribed by it” an “economic national emergency” and “temporarily take over or direct operation of any privately owned public utilities or business affected with public interest.” There is historical precedent for a president to exercise such emergency powers in times of economic crisis. On December 20, 1989, Congress passed Republic Act (RA) 6826 to give some emergency powers to President Cory Aquino arising from the coup d ’etat she faced during the December 1, 1989, rebellion committed by certain elements of the Armed Forces of the Philippines aided and abetted by civilians. To be continued

A nickel for your future: The electric vehicle revolution

By Graciano Calanog

HE world is in the midst of the electric vehicle revolution, which is technically part of the Fourth Industrial Revolution characterized by the fusion of technologies in the physical, digital and biological spheres. The velocity of technological breakthroughs has been staggering. Internal combustion engines will soon be phased out and replaced by “nickel-graphite” cells whose main

raw material is nickel sulphate produced by dissolving nickel metal in sulfuric acid. In the case of the electric vehicle revolution, the Philippines, being the world’s leading producer of nickel ore, would not only play a major part but has the potential of being its biggest beneficiary. This is because the cells powering electric vehicles, called by Elon Musk of Tesla Motors Inc. as nickel-graphite batteries is composed of nickel as cathode and graphite with silicon oxide as

cathode. By 2020 around 80 percent of the electric vehicle cells will be composed of nickel since nickel costs a lot less than lithium and cobalt. In 2008 Elon Musk of Tesla Inc. launched his Tesla Electric Vehicle Roadster with an initial production of 2,500 vehicles. His Model S in 2015 and Model X in 2016 followed this. Later, other prestigious car manufacturers, such as Mercedes-Benz, Volkswagen, KIA, Renault, Ford, Nissan, Mitsubishi, Toyota, Audi, Jaguar, Honda and General Motors

joined the bandwagon. Today, China, which sold 507,000 vehicles in 2016, is the biggest electric vehicle manufacturer. While electric vehicles account for only 1 percent of global sales as of today, this is expected to reach 40 percent in less than 20 years. This is because technology has driven battery cost to less than 20 percent of its cost in 2013. Furthermore, battery capacity has been increasing and infrastructure for charging are See “Calanog,” A11

www.businessmirror.com.ph

Opinion

‘AH MOO DO’

BSP to take all necessary actions to rein in inflation

BusinessMirror

MAIL

Siegfred Bueno Mison, Esq.

THE PATRIOT

N this day and age, we can hardly see milestone events without a coordinator. In some events, there are rehearsals a few minutes or even a day before the big event itself. Most of these occasions require long-range planning of at least six months before the activity. And of all the events—wedding receptions, anniversaries, reunions that I have participated in, I find one particular series of events as the most difficult to plan— the Mison Family Reunion. Since 1998 my father Salvador has sponsored extended family reunions every other year. I suppose it is my parents’ way to ensure that their six children and their respective spouses plus 13 grandchildren based in the United States and in the Philippines will somehow stay connected. Family reunions are major events that entail a master planner and coordinator. And in all these Mison biennial reunions—whether in countries of the Holy Land, or ancient cities of Rome, Florence and Assisi, or onboard cruise ships, my sister Melinda Gay Mison-Asuncion is the master planner and grand event coordinator. About a year before each family reunion, my father designates Melinda to do the research on flights, hotels, car rentals if any and whatever tourist spots where the family can have quality bonding activities. She will always get the best value for money packages and gives regular updates and reminders for everyone to know how to prepare and what to bring to the reunion. During the event itself, she tirelessly handles all transactions with the tour guides, restaurant or resort managers, hotel concierge, taxi operators, etc. Her previous experience in Merrill Lynch as a private investment banker, where she dealt with all kinds of people, is put to good use during these reunions. When things go wrong, Melinda goes to the rescue. Perhaps owing to her UP background, she can be feisty at times, but can surely get the job done. In our most recent reunion in Scandinavia, she lost her voice halfway through the vacation due to over fatigue. Without her caring “Mother Goose” implementation, our family would not be able to enjoy the quality moments during these biennial events. In my case, my personal contribution is just to relax, trusting that everything is taken care of. Melinda is our “go-to guy” for these reunions. We will always have some go-to guy who we can rely on for certain things. For me, such person who can be my “big brother” is actually my sister Melinda. She will always have my back and will never fail to bail me out. Growing up,

Calanog. . .

continued from A10 beginning to be built in China, United States and Europe. In terms of operating cost, electric vehicles cost less than internal combustion engines even at today’s petroleum prices. Even the price of electric vehicles is expected to be lower than that of internal combustion engines in a few more years. By 2040, electric vehicles are foreseen to displace about 8 million barrels of fuel consumption per day. Major nickel players forecast that if electric vehicles market penetration reaches 10 percent, nickel metal demand could reach 400,000 metric tons per year and could increase to 2 million metric tons per year at 100percent market penetration. This is not a far-fetched possibility since the United Kingdom and France will ban the use of fossilfuel cars by 2040, Norway by 2025, India by 2030 and China in the foreseeable future. Considering that the Philippines is the world’s largest producer of nickel ore, it does becomes imperative for us to take advantage of the electric vehicle revolution by requiring the production of nickel metal in the Philippines instead of exporting raw, beneficiated or semi-processed nickel to China, Japan or Korea. The nickel industry has the potential of leap-frogging the

while everyone my age could already mumble intelligible words, I could only utter three words (or syllables), “AH MOO DO.” My father thought I was deaf or perhaps dumb. No one in the family could understand me every time I say such phrase, except my sister Melinda. Up until age 4, I say AH MOO DO whenever I want to eat, sleep, drink or do something. Much to my parents’ amazement, only Melinda can decipher what I mean. During my teenage years, she was my confidant. That early sibling connection is carried over into our adulthood. Whenever I am dealing with a difficult situation at home or at work, she’s there to help me deal with it. After our most recent family reunion, she told me—“check that your heart is after His will and seek to obey Him and His commandments.” I dare say I would have never become a California-licensed lawyer more than 10 years ago without Melinda’s indispensable affection. Nowadays, despite the physical distance between us, Melinda seems to be aware of everything about me without me saying anything—similar to our relationship with our God. Our God is everywhere! His omnipresence tells us that He is the Master Planner and grand event Coordinator in our lives. He has planned all our activities here on Earth. All we have to do is to trust Him. And follow Him, by way of free will. He gives us regular updates and reminders through the persons and events He sends our way. When things get rough, we just have to keep calm and wait for Him. In my case, I try to just relax trusting that everything is taken care of. In the Bible, Psalm 46:1 tells us, “God is our refuge and strength, an ever-present help in trouble.” Whatever troubles lie ahead, God already knows what they should mean for us. The milestone events in our lives, good and bad, are pre-planned and already coordinated from above. And we should rejoice that the Master Planner never fails. He will always understand our needs and aspirations. We just have to talk to Him. “AH MOO DO,” I still say. My sister Melinda might still get it, but I am certain He does.

For questions and comments, please e-mail me at sbmison@gmail.com.

Philippines from a semi-developed to an industrialized/developed country in less than 10 years. Our Gross National Income could accelerate by 10 percent or more per year and our people’s standard of living will improve substantially. The Philippine government should, therefore, as a matter of policy, stop exporting immediately raw, beneficiated or semi-processed nickel ores from operating nickel mines and instead require the nickel industry to begin building ferro-nickel smelter and leaching plants, reverberatory furnaces/ converters and nickel refineries with end in view of producing nickel metal for the electric vehicle market. At the same time, none of the suspended nickel mines should be allowed to resume operations unless they begin building and have made operational their ferro-nickel smelters, leaching plants, reverberatory furnaces/converters and nickel refineries. With proper government policy, our country could very well be on its way to rapid industrialization. Calanog is a licensed mining engineer with expertise in the management of mining and cement companies, in Managerial Finance/Financial Modelling for various industries, and in Managerial Economics, doing technical due diligence and Environmental Impact Assessment. Currently, he is CEO at Gearr and Co. He has held senior positions at Development Bank of the Philippines and at the Asset Privatization Trust. He holds a bachelor’s degree in mining engineering and an MBA, both from the University of the Philippines.

HIS pertains to the BusinessMirror editorial of September 7, 2018, entitled “Has the BSP rate hike failed?” The editorial commented that “an increase in interest rates is not a solution” to cost-push inflation, concluding that “the monetary policy of raising interest rates has not achieved its goal” owing to the unmitigated rise in inflation. We emphasize to your readers that the BSP’s recent monetarypolicy actions have been necessary and appropriate in addressing an important aspect of the current inflation environment. While the BSP’s interest-rate hikes do not directly alleviate supply-side pressures on prices, they nevertheless act to temper the impact of such price pressures on inflation expectations, whose influence on price- and wage-

setting behavior—the so-called second-round effects—could also drive actual inflation outcomes in the future. This is why, in line with international central banking practices, the BSP chose to look through the initial effects of supply shocks at the start of the year, as these shocks tend to be transitory based on past experiences. In the first quarter of 2018, the BSP held its monetarypolicy settings steady as our inflation forecasts remained within the target range and as the public’s inflation expectations held firm. As the months rolled on, however, evidence of rising inflation expectations and early signs of secondround effects underscored the risk posed by sustained cost-push pressures on prices and wages. The BSP, therefore, chose to act decisively—by raising the policy rate by a total of 100 basis points to date—to anchor inflation expectations and prevent further second-round effects. These policy actions reinforce our message to the market that we remain firmly committed to our antiinflation stance, reflecting the BSP’s long-standing disciplined approach to inflation targeting. At the same time, like most central banks, the BSP recognizes that the capacity of interest-rate

Monday, September 10, 2018 A11

hikes to combat inflation is not absolute, particularly when price spikes are due to supply-side forces that are beyond the direct influence of the Central Bank. Mitigating the impact of cost-push forces on prices and social welfare instead requires nonmonetary measures that target their root causes. This is why the BSP continues to support the coordinated efforts among various government agencies to implement measures that would directly temper inflationary pressures, including initiatives aimed at easing constraints to the domestic supply of rice and other food commodities. For the information of your readers, the Economic Development Cluster has lined up the following nonmonetary measures for immediate implementation: For the Department of Agriculture (DA) to replicate the issuance of certificates of necessity to allow imports to be distributed in wet markets across the country; For the National Food Authority to release its rice stocks, with the NFA Council approving additional importations over the next few months; For the economic managers to recommend to the President the issuance of a directive to further simplify and streamline the licensing procedures for rice imports of the

NFA, and to urge the Senate to immediately pass the rice tariffication bill within the month; For the Department of Trade and Industry (DTI), NFA, Philippine National Police, National Bureau of Investigation and farmer groups to form a monitoring team to the surveillance of rice from ports to NFA warehouses and retail outlets; For the DA and DTI to reduce the gap between farm gate and retail prices of chicken by convening poultry producers and set up public markets where producers could sell directly to end consumers, with the DA providing cold storage; For the Sugar Regulatory Administration to open the importation of sugar to direct users; and For the Bureau of Customs to prioritize the release of essential food items in the ports. We wish to reassure you and the public that the BSP remains vigilant and prepared for further monetarypolicy responses in the coming months. The BSP is also strongly committed to taking all necessary actions in order to rein in inflation expectations and ensure that inflation returns to a target-consistent path as soon as possible. Diwa C. Guinigundo Deputy Governor Bangko Sentral ng Pilipinas

From hybrids in PPP to hybrid PPP to hybrid budgeting By Alberto Agra

PPP LEAD Continued from A1

NDER the cash-based method, payments should be done within the fiscal year. In contrast, under an obligationbased budgeting system, contracts awarded within the fiscal year can be delivered even after the end of the year. Under hybrid budgeting, it is contemplated that government agencies could have a six-month extension to accomplish a project and disburse the allocated budget. “Hybrids in PPP.” In PPP, there is a host of possible combinations. PPP in itself is a hybrid. In a PPP, both the public and private sectors enter into a collaborative and purposive arrangement. While certain projects are pursued either

by government or the private-sector proponent (PSP) on their own, PPP projects are accomplished and implemented by both. Law and contract define the extent and breadth of the parties’ functions and obligations. “Hybrid PPP.” In advancing

A perfect storm Anthony Alden S. Aguilar

DEBIT CREDIT Part One

FTER the city spent weeks getting thoroughly drenched by the monsoon, I have to admit that I’m glad for the relatively good weather that Manila has finally been able to enjoy over the past two weeks. The cold and damp are definitely not an asthmatic’s best friend. I have a feeling, though, that a tempest of a different kind may well be giving everyone headaches before long. About a month or so ago, we all began to feel the impact of the Tax Reform for Acceleration and Inclusion (TRAIN) law, which is now being put into effect. From gasoline to grape juice, from toothpaste to tissue paper, prices of almost everything on the grocery shelves have been slowly but surely inching higher and higher. And in homes across the country, frown lines on the foreheads of family breadwinners have become progressively more pronounced. It hasn’t helped that the peso-to-dollar exchange rate has also been climbing up. Some pundits have said that this is good for the national economy, but I can’t find the heart to agree. For one thing, the fact that it will now take more

pesos to buy a single dollar means that the country will have to spend more in terms of pesos to meet the foreign debt payments that are now falling due— and these payments, unless I miss my guess, are only for the interest on our debts, and not the principals. It’s now taking even more of our financial resources to pay up on our foreign debt, and we’re not even making that much of a dent in the principal amounts. And then there’s the fact that the economy is heavily reliant on imported raw materials, the most important of which is oil—on which higher excise taxes have just been imposed under the TRAIN law. What we’re looking at, therefore, is a scenario where the oil companies will have to shell out even more pesos for every barrel of oil by reason of the foreign exchange rate alone, and on top of that, pay higher excise

“Build Build, Build,” the current administration developed its own strategy—the Hybrid PPP. Under this, the government will fund, using its own funds or secured through borrowings or official development assistance, design and build, either through procurement or administration, infrastructure facilities. After turnover or a certain period, the PSP will operate, manage and maintain the facility through the appropriate PPP modality. In this case, the hybrid is sequential, not simultaneous. Hybrid of components. A typical PPP arrangement grants unto the PSP more than one function. Under a pure PPP, not the hybrid PPP described above, the PSP can fund, design, build, operate, rehabilitate, lease and/or add, even own the project. The more functions the PSP assumes, the more risks it bears. Hybrid of projects. The trend now in PPPs is to bundle projects into one whereby one project becomes a

component of a bigger project. There could be a PPP for waste-to-energy (solid-waste management and energy generation), airport on reclaimed land or public market with a mall and monorail station. In hybrid projects, there are more benefits under one contract with one PSP selected under one procedure. Hybrid of government agencies. On the public sector side, there could be more than one implementing agency and/or beneficiary. Like the joint venture for the third bridge in Cebu, the PSP partnered with two local government units—Cebu City and municipality of Cordova. Under the hybrid approach, it is not a bifurcation or an either or but an integration or calibration of choices. Good is combined with good to have a better option. In PPPs, for as long as the public good is served and the PSP selected through a transparent and competitive process, any hybrid is acceptable.

taxes than before. Which ultimately translates to higher prices for bunker fuel, gasoline and diesel, all of them indispensable resources for just about every sector of the economy. Needless to say, this inelegant combination will almost certainly result in higher retail prices for almost every commodity sold to the citizenry, from food to frocks, from books to batteries, from soap to softdrinks. Still others might say that the rising exchange rate will favor exporters, who will now find more pesos in their pockets from the sales of their products. At first blush, this is true. However, a look beneath the surface will show that these higher sales figures are not a result of greater productivity nor of an increase in the number of items that were actually sold—and, therefore, do not indicate real growth for the export sector. Increases in peso sales under such circumstances will also eventually be off-set by rising production costs that are the inevitable offshoot of rising oil prices and the cost of raw materials. Any way you look at it, it seems to me that we are all in for a rather bumpy ride ahead, and I rather doubt that the situation will improve any, particularly since the next phase of the TRAIN law kicks into high gear in the next few weeks. Unless I’m mistaken, only one senator has stepped up to the plate and pledged to sponsor this second part of the TRAIN law. Compared to the several who stepped up to bat for the first part of TRAIN, people could be forgiven for wondering whether the lack of sponsors for TRAIN Part 2 means that the

Senate has finally come to realize how unpopular the TRAIN has become, and how unfavorably it has affected the daily lives of Filipinos from one end of the country to the other. Perhaps the root cause of the morass we now find ourselves in is the unfortunate fact that, while the rates for direct taxes—particularly individual income taxes—were reduced, the rates for indirect taxes, notably excise taxes on petroleum, were significantly increased and the VAT coverage were expanded limiting the exemptions to necessities. As even the freshman accounting students can tell you, direct taxes such as income taxes are paid by the persons or entities on whom they are imposed—in other words, the responsibility for paying them can’t be passed on, shifted or transferred to anyone else. However, indirect taxes like the VAT and excise taxes are a different story, and more often than not, they’re passed on to the consumers— something that is clearly happening now, to the increasing dismay of people from almost every walk of life.

To be continued Antony Alden Aguilar is on study leave from The Tax Offices of Romero Aguilar & Associates. He is a member of the Management Association of the Philippines (MAP) National Issues Committee and MAP Task Force for Taxation. This column accepts contributions from accountants, especially articles that are of interest to the accountancy profession, in particular, and to the business community, in general. These can be e-mailed to boa.secretariat.@gmail.com.

2nd Front Page BusinessMirror

A12 Monday, September 10, 2018

SC junks ₧12-T reward bid of Marcos wealth informer

By Joel R. San Juan

@jrsanjuan1573

HE Supreme Court has junked the petition for mandamus filed by tax informer Danilo Lihaylihay seeking to compel the government to pay him more than P12 trillion representing his 25-percent reward for his role in the recovery of the ill-gotten wealth of the Marcos family and their cronies. In a 22-page decision penned by Associate Justice Marvic Leonen, the SC’s Third Division held Danilo Lihaylihay, who identified himself as confidential informant of the states (CIS), failed to show proof that he has a legal right for the issuance of a mandamus against the government.

Lihaylihay anchored his claim on two letters dated March 11, 1987, which he sent to lawyer Eliseo Pitargue, the former head of the Bureau of Internal Revenue-Presidential Commission on Good Government (BIR-PCGG) ask Force, concerning the Marcoses’ ill-gotten wealth. In his first letter, he informed

From his 1987 letters to the present petition, his bases for rewards swelled from the Swiss bank deposits, gold bars, and diamonds mentioned in his original letters to Atty. Pitargue to virtually all forms of the Marcos family’s ill-gotten wealth.”—Supreme Court

the BIR-PCGG about the ill-gotten wealth of the late President Ferdinand Marcos deposited in 177 banks in 72 countries, which include tons of gold and 500,000 pieces of 10karat diamonds. The second letter concerned alleged dollar deposits of Marcos’s daughter Irene Marcos-Araneta at the Union Bank of Switzerland in 2006. Lihaylihay also write BIR Commissioner Mario C. Bunag demanding payment of 25-percent informer’s reward on the P18.2 billion supposedly recovered by the Philippine government through compromise agreements with the Marcoses. He also insisted on the need

for the government to collect Fortune Tobacco Corporation’s tax deficiencies amounting to P97 billion, to recover P47 trillion deposits in Switzerland, and to deliver to him the informer’s rewards for the recovery of the said ill-gotten wealth. L i h ay l i h ay s a id t he go v ernment owes him a total of P11,875,000,000,000 and P50,000,000,000 representing his reward for the jewelry recovered from former First Lady Imelda Marcos and several government lands as informer’s rewards. He named former Treasurer of the Philippines Roberto C. Tan, Continued on A2

DOT takes steps to boost PHL profile as diving destination By Ma. Stella F. Arnaldo

@akosistellaBM Special to the BusinessMirror

LOSE to half a billion pesos in tourism receipts were earned by the country last year from scuba divers. In an interview on the sidelines of the “Dive Resort Travel [DRT] Show” Philippines on Saturday, Undersecretary for Tourism Development

Planning Benito C. Bengzon Jr. said, “We estimate about 5 percent of total foreign visitor arrivals engage in diving, whether as a primary activity or optional tour. Each diver on average spends from $1,500 to $2,000 during his stay in the country.” Last year foreign tourists reached 6.6 million, of which 330,000 were estimated to have gone scuba diving. The Department of Tourism (DOT) admits that the numbers are still

LOW PRESSURE AREA 130 KM NORTHWEST OF BASCO, BATANES LOW PRESSURE AREA 815 KM EAST OF HINATUAN, SURIGAO DEL SUR as of 4:00 am - September 9, 2018

underwhelming considering the Philippines is acknowledged as the “center of the world’s biodiversity.” According to The Diving Equipment and Marketing Association, there are about 6 million active scuba divers in the world. Diving is a “key product” in the National Tourism Development Plan (NTDP) for 2016-2022 and the DOT has made it a priority to attend key diving expositions in North America, Europe

and Asia. The agency has honed in specifically on three key niche market segments, said Bengzon, to distinguish the Philippines from other Southeast Asian destinations: underwater photography, beginner’s diving and free diving. While the Philippines has “strong brand equity,” and is quite popular abroad for its dive spots, the DOT official explained, “We still have to improve on safety protocols, for instance, ensuring there are enough hyperbaric chambers in the destinations and the connectivity. We want to bring them to the dive sites faster. So that even those with relatively short travel periods, can explore the remote areas.” The Tourism and Infrastructure Enterprise Zone Authority has allocated about P200 million this year for the procurement of hyperbaric chambers and construction of their housing facilities. (See, “Marketing and product development account for largest chunk of DOT’s FY2019 budget,” in the B u s i n e s s M i r r o r online, August 8, 2018.) In a separate interview, scuba diver and professional underwater videographer Jan Acosta of Studio H20 Philippines echoed the same challenges to attracting more foreign divers to the country. “It’s the lack of infrastructure,” he averred. “For instance, if you want to go to Malapascua, you have to go to Cebu first, go by land to Bantayan Island before making the trip to Malapascua,” he noted. For another, Tubbataha Reef, a premier dive spot off Palawan, is only available for three months in a year—from March to June. So divers will have to “pay the same rates” for alternative destinations like Malapascua during Tubbataha’s off season, which is about P125,000 for a six-day liveaboard package. Despite some of these challenges, Acosta said the Philippines continues to attract a lot of foreign divers—“we are well-known worldwide,” who are willing to pay the same prices on dive packages offered by places like the Maldives. “We offer competitive rates like other dive destinations,” he stressed. He also said other dive destinations are now becoming popular, such as Danjugan Island in Negros Occidental, Southern Leyte, Subic and Batanes. These destinations were selling packages during the three-day DRT at the Megatrade Hall in SM Megamall over the weekend. See “DOT,” A2

www.businessmirror.com.ph

NO ‘DESTAB’ FROM US, SAYS KIKO; SOTTO KILLS ARREST-TRILLANES PLOT By Butch Fernandez

@butchfBM

HE political opposition has nothing to do w it h repor ts of destabilization, a minority senator said at the weekend, as earlier rumors—fanned by calls of mobilization by supporters—of the impending arrest of Sen. Antonio F. Trillanes IV fizzled out. In a statement on Sunday, Sen. Francis N. Pangilinan said, “Destabilization is government’s own doing, not the opposition’s.” Pangilinan is current president of the opposition Liberal Party (LP). “Senate is closed on weekends. Only staff of senators are allowed. We have to turn off airconditioning at certain times and on weekends because [they] will bog down if [we] don’t.... I hope his [Trillanes] supporters will not abuse our patience.”—Sotto

The LP leader insisted that “the opposition does not have to do anything,” adding that “on its own, either by its incompetence or corruption, the [Duterte] administration is doing a good job of destabilizing itself.” The senator added that “all Malacañang has to do is listen to its own allies who, like the opposition, are calling for the resignation of Department of Agriculture and National Food Authority officials for causing the rice crisis. Are they destabilizers too?” Pangilinan pointed out that Budget Secretary Benjamin E. Diokno himself said the “current NFA officials should be hanged.” T he LP leader rec a l led that Representatives Joey S. Salceda and Karlo Alexei B. Nograles called for their resignation, while Sen. Cynthia A. Villar said public anger may necessitate the replacement of DA and NFA officials. He added that House leader Danilo E. Suarez, likewise, went so far as calling for the firing of the Department of Trade and Industry, Department of Finance, Department of Budget and Management, and National Economic and Development Authority for their “inability to manage the economy.” “If the President doesn’t want to listen to the opposition, that’s fine but his own allies are sounding the alarm bells,” said Pangilinan, adding: “Malacañang should heed the clamor of its own allies and act decisively to solve the rice crisis.”

‘Ridiculous’ accusation

AT the same time, the senator asserted that “accusation of [opposition-backed] destabilization is downright false.” “It is ridiculous,” Pangilinan said, arguing that “dissent is not destabilization.” He noted that “every time scandals and controversies hound this administration, whether it be corruption issues or issues of incompetent governance, it blames the opposition.”

Sotto explains

MEANWHILE, Senate President Vicente C. Sotto III expressed disappointment at the effort of

“If the President doesn’t want to listen to the opposition, that’s fine but his own allies are sounding the alarm bells.... Malacañang should heed the clamor of its own allies and act decisively to solve the rice crisis.”—Pangilinan

certain minority senators, apparently including Pangilinan, to fan public agitation at the weekend by inviting supporters to go to the Senate. This, amid supposed “information” that Trillanes will be arrested even though he is within Senate premises, and in violation of what Sotto said was a firm agreement between the Senate leadership and the military and police to respect the Senate’s authority over a member. Sotto was asked by reporters, after the rumors broke of the supposed plot to arrest Trillanes, if he can give a 100-percent guarantee that no arrest will happen inside the Senate, and that even if a warrant is issued, the arresting officers will coordinate with the Office of the Senate Sergeant at Arms and not barge inside the Senate at the weekend. Sotto said he was certain the authorities will respect their agreement, and chided those who keep pointing to previous cases of senators being arrested. He said he had been at the institution long enough to personally attest that no such arrests within premises has ever been done. He also explained why he ordered the limiting of visitors of minority senators at the weekend. “What is their business in the Senate when they know there is no work? Don’t test my patience and leniency on the matter because I will not allow the Senate to be used for any unruly plot,” Sotto told reporters in a text message. “I expect Senator Trillanes to act accordingly to what we agreed on. All senators have the responsibility to protect the institution above all.” Speaking in a mix of Filipino and English, Sotto said “tensions in the Senate are heated enough as it is, so I hope people won’t needlessly add fuel to the fire. It’s not good if some forces that might seek to exploit the situation will use us. What is being protected here is the Senate as an institution.” Pe r t h e i r a g r e e m e n t , Trillanes is allowed 20 visitors only at any given time. “I was expecting them [senators] to help me preserve the integrity and the sanctity of the institution and not abuse the hospitality of the Senate leadership. No need. There is a church nearby. Senate is closed on weekends. Only staff of senators are allowed. We have to turn off air-conditioning at certain times and on weekends because it will bog down if they don’t. We are just accommodating Senator Trillanes. I hope his supporters will not abuse our patience,” Sotto said, by way of explaining reports that he “disauthorized” the holding of a Mass at the Senate during the weekend.

Editor: Efleda P. Campos

Companies BusinessMirror

Monday, September 10, 2018

Standard, Sumitomo to serve as advisers on SMC’s ₧735-B intl airport in Bulacan

By Lorenz S. Marasigan

@lorenzmarasigan

TANDARD Chartered Bank (SCB) and Sumitomo Mitsui Banking Corp. (SMBC) were appointed as co-financial advisors for San Miguel Corp.’s (SMC) P735billion New Manila International Airport in Bulacan. “[The two banks] are both leading advisors in the infrastructure and airports sector and will be able to bring their expertise and experience to assist SMC throughout the process, with the ultimate goal of

the successful delivery and closing of this landmark project for the Philippines,” a statement from the food-toinfrastructure firm read. In the same statement, SCB said its expertise will help pro-

vide necessary support to secure funding for the multibillion-peso initiative. “We believe our experience in projects of this scale will be of great value to San Miguel, and together with SMBC, we are ready and able to provide all the support they will need,” it said. SMBC said, “SMBC’s task, together with SCB, is to make sure that San Miguel has all the support required to get a project of this magnitude and scale, done. We look forward to providing our expertise to deliver on this goal.” Under its proposal, San Miguel wants to spend P735 billion to develop the Bulacan International Airport, envisioned as a 2,500-hectare airport complex

that will have a total capacity of 100 million passengers annually. It also has a provision for the construction of an 8.4-kilometer airport toll road, and a four-to-six runway design. The proposal also included the construction of a sea port, an industrial zone and expressways. The group has received the approval of the National Economic and Development Authority (Neda), but the project has yet to be subjected to a Swiss challenge. The Department of Finance and Neda have submitted a commentary on the project to the Department of Transportation last month. The proponent then has to submit a rejoinder to iron out the details of the unsolicited proposal.

Cityland to raise ₧1.4B in commercial papers By VG Cabuag

@villygc

EAL-ESTATE developer Cityland Development Corp. is planning to raise P1.4 billion in commercial papers, proceeds of which will be used to fund its projects and pay for its maturing loans and interest expenses. In its filing with the Securities and Exchange Commission, the company said its debt paper will be sold at its face value and will have a maturity of one year. It carries an interest rate of 1.4609 percent. In its preliminary prospectus, the company said P940.5 million of the proceeds will be used for its project-related costs, P427.68 million for payment of maturing debt and P20.45 million for the interest expense of the same debt paper. It said the project-related costs include the construction of its Pines Peak Tower II, 101 Xavierville and Pioneer Heights I. It will disburse the amount starting on the first quarter of this year through November next year. Cityland said that it also has a total credit line with various institutions amounting to P2.45 billion if the float of its com-

PAL showers senior passengers with perks beginning Grandparents’ Day By Recto Mercene @rectomercene

N the occasion of Grandparents’ Day on Sunday, September 9, four-star national carrier Philippine Airlines (PAL) unveils various products and services, geared toward ensuring that its senior citizens will have a comfortable and stress-free travel. Starting Sunday, elderly passengers will receive a 20-percent discount and VAT exemption for domestic flights, online booking and check-in; special meals, including precut meals; curbside drop-off and pick-up points and priority check-in and immigration lanes. Also courtesy waiting areas and seats, special wheelchair assistance from departure to arrival, priority boarding, wheelchair-friendly airport terminal transfer buses and courtesy area for baggage retrieval are provided for elderly passengers. PAL Chief Customer Experience Officer Jessica Abaya said the carrier values all passengers, “especially those who need special assistance, our senior citizens and PWDs.” “Their needs are our priority. We want to make their travel experience comfortable and delightful. We continually stress to our frontliners the importance of bringing to life PAL’s service culture of ‘Buong Pusong Alaga, Walang Katulad na Pag-aruga.’” Abaya advises senior-citizen passengers that they can now avail themselves of special meals to suit their dietary requirements with the option for soft-diet or precut meals. She advises passengers to declare their meal requirements and other requests for assistance during booking/reservation or at least 48 hours before travel. Curbside drop-off and pick-up points, priority check-in lanes, courtesy areas and seats, priority boarding lanes can be seen easily as PAL set up easy-to-spot signage. At the baggage claim, specific areas are dedicated to senior citizens for the convenient retrieval of their luggage. Abaya added: “ Our direct flights to the US, London and Australia are convenient and popular among our senior-citizen passengers. They also appreciate the special care our cabin crew provides them during their flight, assisting them to go to the lavatory, stow their bags, help them with forms, etc.” On Grandparents’ Day, PAL partnered with Bo’s Coffee in the Naia Terminal 1 and Mactan-Cebu to provide senior citizens a free chocolate-chip cookie for every coffee bought. “As the country’s four-star national carrier, we provide our travelers a heartwarming experience to remember. We bring comfort and convenience to those who need them most,” Abaya said.

mercial papers fails to push through. These banks include Security Bank and Trust Co. Amalgamated Investment Bancorporation, Metropolitan Bank and Trust Co. and United Coconut Planters Bank. Meanwhile, it will use P427.68 million to pay for the maturing commercial papers. “If proceeds are substantially less than the maximum proceeds, the company will tap existing lines with the bank,” the company said. It added that the proceeds of the offering is not intended to acquire new properties within the next 12 months.

NIBH set to commission one biomass power project this year

EGROS Island Biomass Holdings Inc. (NIBH) targets to commission this year one of its three biomass power projects while the remaining two are targeted for completion by end-2019. These three biomass projects are the 20-megawatt San Carlos Biopower Inc., the 25-MW South Negros Biopower Inc. and the 25-MW North Negros Biopower Inc. These three power projects cost about $16 million (roughly P856.75 million). Ayala-led AC Energy Inc.’s unit Presage Corp. acquired Negros Island Biomass last year. “We have three plants. The first is San Carlos Biopower. Pyory Energy Inc. is our EPC [engineering, procurement, construction] consultant. We’re now hopefully commissioning it before the year ends,” said Don Mario Dia, NIBH treasurer. Pyory replaced China’s Wuxi Wagwang as the

EPC contractor for San Carlos and South Negros biomass projects. “Unfortunately, Wuxi was not able to complete the project on time so we took over and requested Pyory to assist us further. Wuxi was also supposed to do South Negros but we terminated also our arrangement,” Dia said. San Carlos Biopower and South Negros Biopower cost $55 million each. South Negros, he added, will be finished by end-2019. “We have a battery of expats in the group purposely to complete San Carlos and then South Negros.” The third biomass power project, North Negros, is expected to be completed “one month before end of 2019.” Dia said North Negros Biopower has also tapped Pyory as EPC contractor. He said the project cost for North Negros Biopower is about $50 million. Lenie Lectura

Companies BusinessMirror

Monday, September 10, 2018

Freenet user base grows 8-fold in first 8 months

By Lorenz S. Marasigan

@lorenzmarasigan

OYAGER Innovations Inc., the digital innovations arm of Smart Communications Inc., hopes to continue the exponential growth it saw for freenet during the first eight months of the 2018, when its unique users’ base ballooned by eight times. Dindo Marzan, who sits as vice president at Voyager, said his group was surprised by the exponential growth it saw over the last nine months, as its unique users reached 8 million as of end-August. “Last year we were just a little above 1 million unique users. When

we started 2018, everything just started to be good for freenet,” he said, noting the base increased, thanks to the introduction of new products within the application, such as e-pins for games, digital vouchers and load credits. The freenet app is a portal of

mobile apps that users can access for free. It includes social networking sites such as Facebook, Twitter and Instagram, games, shopping sites and travel apps, among others. To further boost its user base, Marzan said freenet is holding a free concert for its users. Dubbed as Freeniversaya, the concert will feature Filipino bands and artists, top billed by Moira dela Torre, Shanti Dope and Bamboo, among others. Users may redeem concert tickets by using the points they earn within the freenet app. Points can also be used to redeem other rewards, such as data packages, pins and vouchers. “With the free concert, we are seeing a lot of new users looking to use the freenet app,” Marzan said. “This time, we’re giving a more rewarding experience to our users by enabling them to redeem free concert tickets using the points

they accumulated within freenet.” The concert is slated for September 20. Currently, the freenet app is the top free-lifestyle app on Google Play in the Philippines. The app is most popular among young and price-sensitive mobile users. Marzan said the “massive popularity” of the freenet app reflects a “pent-up demand” for sponsored data and rewards in the Philippines. Currently, a third of the population is still unable to experience always-on Internet, data from We Are Social showed.   “Whether it’s accessing our partners’ apps and sites or redeeming data packages using their points, the goal of freenet from the start has always been simple: to connect the unconnected and underserved so that they can take part in the growing digital economy,” Marzan noted.

BDO reaps numerous honors at Asian Banking and Finance Banking Awards 2018

T was a record-breaking year at the Asian Banking and Finance Awards with over 250 trophies given away, including six won by BDO Unibank Inc., the country’s largest bank. BDO won in three major categories: Wholesale Banking, Retail Banking and the newly added Corporate and Investment Banking Award. In the Wholesale Banking category, BDO won the Philippine Domestic Trade Finance Bank of the Year and the Philippine Domestic Cash Management Bank of the Year. In winning the Philippine Domestic Trade Finance Bank of the year, BDO was commended for having five strategic centers located in key

areas in the country, which enables to provide customized trade solutions to clients. “It has processed nearly $6-billion trade transactions in 2017, accounting for about a fourth of the industry’s trade business. For this commitment to enabling trade, BDO Unibank is rightfully recognized as Philippine Domestic Trade Finance Bank of the Year,” the award-giving body said. For the cash-management category, BDO was lauded for its wide branch and automated teller machine network, which to date total over 1,000 and 3,800, respectively. Through this vast network, the bank is able to provide innovative end-to-

end financial solutions to corporate clients. In retail banking, BDO through its corporate social responsibility arm BDO Foundation, bagged the CSR of the Year–Gold Award for its efforts to empower people with disabilities through the development of a community for disabled individuals. BDO Foundation built a 225-square-meter multipurpose hall near the resettlement homes to give PWDs and their families a place for livelihood, as well as recreation. Meantime, the bank through wholly owned BDO Capital and Investment Corp. also won a string of awards at the newly created category: Corporate and Investment Banking

Awards. BDO Capital won the Equity Deal of the Year (Philippines), Corporate and Investment Bank of the Year (Philippines) and the Syndicated Loan of the Year (Philippines). “BDO Capital proposed an innovative structure that addressed Del Monte Pacific Ltd.’s $360-million perpetual preference share tranche. By providing a new instrument in the form of US-denominated perpetual preference shares, the bank provided the template that led regulatory bodies SEC and PSE to develop rules for dollar-denominated securities,” Asian Banking and Finance said in handing out the Equity Deal of the Year–Philippines Award.

www.businessmirror.com.ph

STOCK-MARKET OUTLOOK LAST WEEK

SHARE prices plunged last week, with the main index dropping 3 percent after investors were surprised on the higher inflation rate in August, prodding the Central Bank to review its interest-rate outlook. The benchmark Philippine Stock Exchange index fell 257.07 points to close at 7,598.64 points. Foreign investors were net sellers at P4.44 billion, with foreigners dumping Philippine stocks all week long. “This is due to the fact that the closely monitored MSCI Emerging Markets ETF fell as much as -0.6 percent this week, bringing the decline from its all-time high reached in January of this year to more than 20 percent,” Christopher Mangun, research head at Eagle Equities Inc., said on the higher net selloff of foreign investors. August inflation numbers came in at 6.4 percent, which was higher than both government and market analysts expected. Value turnover hit an average of P5.95 billion as investors stayed generally on the sidelines. All of the other subindices ended on the red. The broader All Shares index fell 115.91 points to 4,656.42; the Financials index declined 93.68 to 1,716.41; the Industrial index shed 29.44 to 11,243.41; the Holding Firms index dropped 248.97 to 7,515.7; the Property index plunged 193.3 to 3,752.23; the Services index was down 11.44 to 1,525.74; and the Mining and Oil index slumped 310.33 to 9,593.63. Losers edged gainers 157 to 65 and 26 shares were unchanged. Top gainers were Italpinas Development Corp., Phinma Petroleum and Geothermal Inc., Asiabest Group International Inc., Primex Corp., Geograce Resources Philippines Inc. and IRC Properties Inc. Top losers were Harbor Star Shipping Services Inc., Benguet Corp. A, United Paragon Mining Corp., Jolliville Holdings Corp., Nickel Asia Corp. and MJC Investments Corp.

THIS WEEK

SHARE prices are expected to consolidate this week, following the fall of prices last week. “Markets are gradually transitioning from consumer to investment-primed growth. As such, equities investors are encouraged to take a broader view on inflation, as long as price increases are paralleled with improving jobs generation,” broker 2TradeAsia said. It sees trading window to be at 7,500 to 7,880 as it sees no positive catalysts at the moment. “The index is barely hanging on to our 7,600-support level, which is better than seeing it go all the way back to 7,500. The index may continue to trade sideways between 7,600 and 7,870 as it builds momentum to test 8,000 before the end of the month,” Mangun said. “Local investors have picked up the slack and are supporting this market despite the continued foreign outflow,” he said.

STOCK PICKS

BROKER Regina Capital and Development Corp. placed a buy recommendation, but only during pullback on the stock of lender BDO Unibank Inc. The stock closed down to its 52-week low of P120.30, even sliding as far down as P118 intra-day. “Indicators are showing strong bearish signals,” it said, giving a weekly target on the stock at P122.61. BDO shares closed at P120.20 apiece on Friday. Meanwhile, the broker recommended to buy the stock of SM Prime Holdings Inc. (SMPH) when its support price of between P35.05 and P37.04 per share holds. “SMPH teased its 50-day moving average support as it closed Thursday’s session down to P37.30. Expect the stock to trade sideways,” the broker said. SMPH shares closed at P36.65 apiece. VG Cabuag

Agriculture/Commodities BusinessMirror

www.businessmirror.com.ph

China’s expensive taste for US fruits seen dented by tariffs

F C

HINA’S growing middle class has snapped up shipments of fruits and nuts from the United States in recent years. But that demand is now under threat amid the brewing trade war between the nations. The US exports about $13 billion dollars of fruit and tree nuts annually, with about 15 percent of that going to China and Hong Kong, David Magana and Roland Fumasi, senior analysts at Rabobank, said in a report e-mailed on Thursday. The Asian nation’s demand has grown four times faster than buying from the rest of the world, they said. While strong consumption in other nations will keep global demand for most of the US goods

positive over the next marketing year, which ends in July, China’s tariffs will still have a “significant” impact on the industry and increase pressure on prices, Magana and Fumasi said. The duties range from 45 to 60 percent, they said. The impact of the fees will vary, partly because of China’s reliance on US supplies for some products. Almond exports will likely take the smallest hit, dropping between 5 and 10 percent, and pistachio shipments are forecast to fall less than 15 percent, Rabobank estimates. China imports almost 80 percent of its almonds and nearly all of its pistachios, and the US supplies more than half that demand. Bloomberg News

Govt urged to subsidize GM seeds By Jasper Emmanuel Y. Arcalas

@jearcalas

ILIPINO farmers should gain access to low-cost genetically modified (GM) seeds once a law that seeks to advance biotechnology in the Philippines is passed, according to the Coalition for Agriculture Modernization in the Philippines Inc. (CAMP). AN employee arranges imported American apples for sale at a grocery store in Beijing, China, on March 23. The trade conflict between China and the United States escalated, with Beijing announcing its first retaliation against metals levies hours after President Donald J. Trump outlined fresh tariffs on $50 billion of Chinese imports and pledged there’s more on the way. GILLES SABRIE/BLOOMBERG

Editor: Jennifer A. Ng • Monday, September 10, 2018

CAMP President Benigno D. Peczon, a balik scientist, told the BusinessMirror that the initial funding under the proposed Modern Biotechnology Act could be used by the government to provide subsidized GM seeds to farmers. There are currently two bills pending in the House of Representatives that seek to support the development of modern biotechnology in the country: House Bills 7705 by Speaker Gloria Macapagal-Arroyo and HB 7926 by Deputy Speaker Sharon S. Garin. Both bills were drafted by the CAMP and were supported by Garin and Arroyo. “It could be used [for providing free GM seeds]. It can enable farmers to get seeds so that they will not anymore buy from multinationals,” Peczon said in a recent interview. Under HB 7705 and 7926, the Biotechnology Authority of the Philippines would be stablished to serve as the overall regulatory agency on

biotechnology in the country. Upon creation, the BioAP would have an initial funding of P500 million, according to the bills. The fund, according to Peczon, could be used by the BioAP to produce its own versions of GM crops in the market such as Bacillus thuringiensis (Bt) corn. “If you look at it, all the patents of [Bt] corn from the multinationals are expiring. Why do not we enable one of our institutions to come up with our own version [of Bt corn]?” he said. Peczon said the passage of a biotechnology law would also streamline the approval process for new applications to propagate GM crops. “We are losing millions because of opportunity loss. Our approval process is too convoluted right now,” he said. “There are too many players. If there is no danger [from GM crops] anyway then why should we it undergo a tedious process? Why do we

treat it as if it’s dangerous?” he added. Under the bills, the BioAP shall be the lone approval agency for applications to propagate new GM crops in the Philippines. The BioAP shall comprised of the science secretary, four recommended members by the National Academy of Science Technology of the Philippines and two members recommended by the Philippine Chamber of Commerce and Industry. Members of the BioAP shall be appointed by the President and will serve a five-year term, renewable for another term. The BioAP shall, also have a secretariat headed by an executive director that will be appointed by the President. The executive director should have at least 10 years of professional experience in managing research and development programs. At present, an interagency committee created under the Joint Department Circular (JDC) 1 Series of 2016 oversees the approval process of Bt crops in the country. The members of the committee are: the Department of Agriculture (DA), Department of Science and Technology (DOST), Department of Health, Department of Environment and Natural Resources, and Department of the Interior and Local Government. “We have too many cooks in the kitchen. We were already experiencing difficulties in approvals when it was only the DA and the DOST that approved

the applications. The approval process worsened when other agencies were included,” Peczon said. “Since the approval of the JDC, there has been no new commercialized [GM crop] in the market,” Peczon added. The explanatory notes of both HB 7705 and 7926 indicated that it takes 65 months or more for a new GM crop in the country to be commercialized. “The cumbersome regulations can no longer be justified for they effectively discriminate against local public biotech research institutions which have limited resources to comply with the existing regulations,” the bills read. Earlier economist Cesar Quicoy, associate professor at the University of the Philippines Los Baños College of Economics and Management, studied the cost of delaying the commercialization of Bt eggplant in the country in three different adoptionrate scenarios. Quicoy’s study found that Filipino farmers are losing as much as P33.85 billion annually due to noncommercialization of Bt eggplant.

B4 Monday, September 10, 2018

7-ELEVEN BRINGS ASIA’S TOP FACE MASK IN STALLS NOW

SM FOUNDATION EXTENDS ASSISTANCE TO HABAGAT VICTIMS SM Foundation, through its Operation Tulong Express, has extended assistance to families in the cities of Marikina and Quezon, San Mateo, Rizal, and Pampanga who were affected by heavy rains and flooding caused by the southwest monsoon (Habagat). Volunteers from SM Supermalls and SM Markets generously shared their time to pack relief goods and distribute the kalinga packs to 8,650 families, consisting of basic food items such as ready-to-eat canned goods, noodles, and bottled water.

UR skin deserves as much care and attention as any part of the body. It is exposed daily to harsh sunlight, pollution and dirt, which may lead to blemishes and premature signs of aging. Skip the hassle of concealing your imperfections by having a go-to skin-care product that can easily keep your skin healthy and youthful-looking! A worthy addition to any beauty routine that promises easy application and outstanding results has finally come to the Philippines. Now there’s no need to ask for friends to bring it back home whenever they travel abroad or even wait for days for online shopping sites to deliver to your doorstep, as Asia’s leading and award-winning face mask My Beauty Diary is now conveniently available in 7-Eleven stores in Luzon. My Beauty Diary facial mask is a must-have skin-care product designed to cater to Asian skin. It’s also known to be effective in making your skin glow even after just one use. It’s easy to apply: All you have to do is take out the sheet mask, apply it directly to your face and let it stay on for a few minutes. So take a break, pamper your skin and escape from the stress of everyday life with My Beauty Diary. Now, treating yourself to something special is simpler and more accessible

QUEST PLUS CLARK RECEIVES CERTIFICATE OF EXCELLENCE FROM TRIPADVISOR

UEST Plus and Conference Center Clark has received a certificate of excellence from the renowned American travel web site TripAdvisor. TripAdvisor is a platform for travelers to share honest reviews, feedback and travel-related content of hotels, restaurants and tourist spots around the world. The certificate of excellence from TripAdvisor honors hospitality businesses that deliver consistent excellent

service. This is only presented to approximately 10 percent of total businesses registered on the said travel web site. As of writing, Quest Plus is consistent in its 4 out of 5 rating. Despite undergoing renovations, Quest Plus Clark proved that the said inconveniences will not deter the staff and management in providing excellent service to its guests and clients. Customer service is the driving force behind the certification, and this is

what the management plans to continuously improve and be an expert on. With the upcoming launch of Mequeni, the iconic all-day dining restaurant of the hotel; eQuinox, a fitness center that offers crossfit and various training equipment; and holiday promotions and packages in the offing, there is certainly more to look forward to. For reservations and inquiries, visit www. questhotelsandresorts.com/clark.

as 7-Eleven is bringing two variants of My Beauty Diary to the country: black pearland arbutin brightening. Both contain unique ingredients, such as aquaroad and cosphingo, that can provide a penetrative and long-lasting effect. The black-pearl mask is created for skin whitening and moisturizing. It contains hydrolyzed soy, rice protein extract and licorice essence, which provide intense hydration to the deep layers of the skin. It also contains the natural active ingredient black pearl, which whitens and softens the skin. This variation is a popular choice for skincare enthusiasts as it can show noticeable results after one use due to plenty of essences in one single pack. Meanwhile, the arbutin brightening mask is developed for skin whitening and skin elasticity. It contains a popular whitening ingredient arbutin extracted from a bearberry plant and scientifically proven to be effective in protecting the skin from harmful UV rays, as well as preventing melanin formation. As a result, it makes the skin whiter and more radiant, all the while making the skin firmer and smoother. My Beauty Diary is considered the leading face mask brand in Hong Kong, Singapore, Japan and Taiwan. It has been feted with recognitions, like Best Mask by Cosmopolitan in Thailand, Best Selling Facial Mask and Experts’ and Consumers’ Choice in Singapore in 2015, and the Cosme Best Cosmetics Award (first place) in Japan. It has also been honored with various awards in its home country, Taiwan. Just this past June, My Beauty Diary once again took the limelight, as it was the only face mask brand included in the official gift bag provided to the presenters, performers and awardees at the 2018 MTV Movie and TV Awards. Pampering yourself have never been more convenient, now that My Beauty Diary is at 7-Eleven. My Beauty Diary’s black pearl and arbutin brightening face masks both retail for P89 each in 7-Eleven stores in Luzon. For more information, visit www.7-eleven.com.ph.

UNIONBANK INNOVATES IN CLOUD UNIVERSAL-BANK OPERATIONS

N August 22 the Union Bank (UnionBank) of the Philippines, a publicly listed universal bank, commenced S/4 Hana hosted out of Hana Enterprise Cloud (HEC) to fuel its digital transformation in the banking sector. First founded in 1982, UnionBank is a universal bank in respect to market capitalization, profits and customer coverage, committed to its purpose of making the difference in customers lives by connecting and enabling communities through smart banking. Today the bank distinguishes itself through superior technology, unique branch sales and service culture, and centralized backroom operations. Justo A. Ortiz, chairman and chief executive officer of UnionBank, shared that in its 35 years of existence, the company believes that the mission to “transform the bank for the digital economy” is the most revolutionary and gigantic step that the bank has taken toward enabling its customers through digital transformation. UnionBank, a leader in Philippine digital banking, was among the first of its peers to start the first bank web site, pioneer online banking in the country, and launch the country’s first electronic savings account. These things all point to UnionBank’s goal of creating seamless operations in all parts of its transaction for its customers. “We wanted to create a core banking system that will help us to decentralize our functions for booking, establish a shared service framework to support our HR [human resource] functions, and automate our operations focused on enterprise GL, planning and budgeting, procurement and analytics. This development is vital for us to meet the ever-changing needs not just of our customers but also our employees,” Ortiz said. Before tapping SAP, UnionBank faces significant challenges with financial management, manual Excel-based processes, budget tracking, account and product profitability reports, reimbursement and disbursement system (RDS), and project management, among other things. Now, with S/4 Hana hosted on HEC, UnionBank can reduce its business complexity with minimum human error and intervention, allowing the company to boost its productivity and efficiency. “We want to further establish our position as the most innovative and pioneering bank in the country to advance its operation in the S/4 Hana hosted on HEC, as we take on

a cloud-first strategy with the help of SAP. But more than that, we see this as a chance for us to streamline processes and meet business needs in a secure, safe, scalable and robust cloud environment,” added Henry Aguda, chief technology and operations officer and chief transformation officer of UnionBank. HEC, a private cloud offered by SAP, helps customers to deploy Hana applications such as S/4 Hana, a real-time enterprise resource-management suite that supports different lines of business run simple in the digital economy. With S/4 HANA hosted out of HEC, UnionBank can now focus on solution breath and simplified user experience that will help them lean toward the digital transformation. “Going digital can provide an immense change in today’s business environment, especially with the way banking in UnionBank is carried out. We hope that by running live with S/4 Hana hosted through HEC and with our expertise in digital technologies, UnionBank can operate and deliver more value to their customers in a seamless and engaging way,” said Edler Panlilio, managing director of SAP Philippines. Furthermore, HEC and SAP’s application-management service make room for different sectors to transform their business by taking advantage of its ability to free up customer’s resource and information technology staff, reduce the investment capital required and to minimize and avoid energy and data center costs. This is essential for organizations to drive value creation activities, focus on business innovation and boost revenue. SAP considers the unique industry-specific needs of UnionBank in a tightly regulated industry and understands the role that technology plays in shifting the dynamics of success. SAP believes that this solution is the cornerstone of future innovations as UnionBank begins to explore blockchain technology, in-memory computing and big data. Through this, UnionBank can see that the system is ready to support new technologies and solutions in the market. Choosing SAP is in line with the bank’s core mission to transform the bank for the digital economy and be the first in the country put all their core operations to the cloud. For more information, visit the SAP News Center or follow them on Twitter at @sapnews.

PHL-CHINA EXPANDS BUSINESS RELATIONS AT CHEMEXPO PHILIPPINES 2018 The Philippines Association of Chemicals Suppliers Inc., the China Council for the Promotion of International Trade Subcouncil of Chemical Industry (CCPIT-Chem) and the Philippine Economic Zone (Peza) sign a memorandum of understanding for the furtherance of growing relationship between the two countries in the field of chemical industry. The signing of MOU was the highlight of Chemexpo Philippines 2018 held from August 28 to 30. Various global players, mostly from China and other Asian countries, as well as small-medium enterprises based in the Philippines, gathered for business-to-business meetings. Among them are renowned in particular for organic and fine chemicals, active pharmaceuticals ingredients, drug intermediates, dyes and pigment, surfactants, cosmetic chemicals, agrochemicals, oleochemicals, laboratory chemicals, packaging and a host of chemicals. Leading the exhibit opening are Cheng Yong (third from left), the special envoy of the president to the People’s Republic of China; Marrian Chunyab, Vice President for CCPIT-Chem China; and Brigadier Gen. Charito Plaza, director general of Peza, along with other guests.

‘LIKE A KID AGAIN’

Sports

CHAIR umpire Carlos Ramos (left) talks with referee Brian Earley as Serena Williams discusses a point with Donna Kelso. While all these are happening, Williams’s broken racket sits in front of her bench after she slammed it on the court. AP

BusinessMirror

| Monday, September 10, 2018 mirror_sports@yahoo.com.ph Editor: Jun Lomibao

learn a lot from that.” It was that way throughout the tournament for Osaka, who won the second title of her career. She was mostly dominant, dropping only one set in her seven matches, and she saved five of six break points against Williams after erasing all 13 in the semifinals against Madison Keys. That’s the kind of toughness Williams has so often shown in winning 23 Grand Slam singles titles, one shy of the record. It’s one of the things Osaka always admired about Williams, made her choose her as the topic of that report years ago. “I colored it and everything,” Osaka said. “I said, ‘I want to be like her.’” On Saturday, she was better. NAOMI OSAKA, 20, beats her idol Serena Williams to win the US Open. AP

By Brian Mahoney

The Associated Press

EW YORK—Naomi Osaka walked to the net, the excitement of being a Grand Slam champion mixed with a bit of sadness. She grew up rooting for Serena Williams, even did a report on her way back in third grade. Her dream was to play her idol at the US Open. So when she had actually done it, beating Williams, 6-2, 6-4, on Saturday night to become the first Grand Slam singles champion from Japan, why was it so difficult? “Because I know that, like, she really wanted to have the 24th Grand Slam, right?” Osaka said. “Everyone knows this. It’s on the commercials, it’s everywhere. “When I step onto the court, I feel like a different person, right? I’m not a Serena fan. I’m just a tennis player playing another tennis player. But then when I hugged her at the net.... I felt like a little kid again.” Osaka teared up as she was finishing her answer, still overwhelmed as she juggled the idea of her winning and Williams losing. Though her nerves on the tennis court don’t show it, it was a reminder of just how youthful the 20-year-old Osaka is. Not since Maria Sharapova was 19 in 2006 has

University and in Osaka so I feel a close connection,” he said. “Max is so family-oriented.... Just as Naomi said after the match, he can’t bear to watch Naomi’s matches. He gets too emotional.” Canadian fan Vince Degiorgio, who lives in Ontario with his Japanese wife, said that Osaka’s win “will be an inspiration to not only Japanese female tennis players, but all kids of mixed race people in Japan who strive to show pride in their heritage.”

JAPAN CELEBRATES FIRST GRAND SLAM CHAMP the US Open had a younger women’s champion. The way Williams lost, of course, was what stood out most in the match. The arguments with chair umpire Carlos Ramos and the three code violations—one that gave Osaka a game for a 5-3 lead in the second set when Williams was trying to rally—will be what was most remembered. But not for Osaka, who claimed to not even hear the interactions between Williams and Ramos. What will stay with her is the hug at the net afterward, and Williams’s kind words during the trophy presentation, when she asked a booing crowd to focus its intention on Osaka’s moment. “So for me, I’m always going to remember the Serena that I love,” Osaka said. “It doesn’t change anything for me. She was really nice to me, like, at the net and on the podium. I don’t really see what would change.” Osaka was nervous on Saturday, making a few phone calls to her sister in Paris to calm her down. Even during the match, whenever she was faced with a tough spot, she kept telling herself to try to do what Williams would do. Williams was certainly impressed. “She was so focused,” the 36-year-old Williams said. “I think, you know, whenever I had a break point, she came up with some great serve. Honestly, there’s a lot I can learn from her from this match. I hope to

IN Tokyo, tennis and non-tennis fans alike are celebrating one of their own winning a Grand Slam tournament for the first time. The results came in early Sunday morning Japan time, and television stations interrupted TV dramas and cooking programs with news flashes after Naomi Osaka defeated Serena Williams, 6-2, 6-4, in the women’s final at the US Open in New York. “She just let her playing do the talking,” said Tokyo resident Noritomo Kusumoto. “And her words after the match deserve a big warm applause under the unexpected circumstances. True champion and proud of her!” Minori Nakano, a teacher and translator from the city of Kobe in western Japan, praised 20-year-old Osaka’s after-match comments in English as “so cool and yet so Japanese.” Osaka apologized to the crowd for beating the local favorite and thanked Williams for being an inspiration. “I don’t watch tennis, but I have been this week, and will be watching Naomi from now on,” she said. Fellow Japanese player Kei Nishikori, who’s bid to become Japan’s first male grand slam champion was ended by Novak Djokovic in the men’s semifinals on Friday, tweeted “#proud” soon after Osaka’s victory along with a series of thumbs up and trophy emoji’s in a separate tweet. Osaka—born in Osaka to a Japanese mother and a Haitian father and has lived in Florida since aged three—

A U.S. OPEN FINAL UNLIKE ANY OTHER EW YORK—The events and the arguing and the booing that would make this a US Open final unlike any other began when Serena Williams’s coach made what she insisted was an innocent thumbs-up, but the chair umpire interpreted as a helpful signal. It was the second game of the second set on Saturday, in a packed Arthur Ashe Stadium, and Williams’s bid for a recordtying 24th Grand Slam title already was in real trouble because she was being outplayed by first-time major finalist Naomi Osaka. Chair umpire Carlos Ramos warned Williams for getting coaching during a match, which isn’t allowed. She briefly disputed that ruling, saying cheating “is the one thing I’ve never done, ever.” A few games later, Williams received another warning, this time for smashing her racket, and that second violation cost her a point, leading to more arguing. Eventually, Willams called Ramos “a thief,” drawing a third violation—and costing her a game. “I have never cheated in my life!” Williams told Ramos. “You owe me an apology.”

has been winning hearts in Japan with her antics both on and off the court, with her post-match interviews always fun to watch, as she does her best to answer questions in both English and her less-than-perfect, but loved by the masses, Japanese. Barry Louie, who lives in Japan and is a friend of Osaka’s father, said her father was working as an English teacher when he met her mother. “We used to play basketball together at Kobe

Soon, Osaka was finishing off a 6-2, 6-4 victory that made her the first player from Japan to win a Grand Slam singles title. That is not, however, what will be remembered about this chaotic evening. With jeers bouncing off the arena’s closed roof, both players—the champion, Osaka, and the runner-up, Williams—wiped away tears during a trophy ceremony that was awkward for everyone involved. “I just feel like I had a lot of emotions,” Osaka said, “so I had to kind of categorize what was which emotion.” Williams whispered something to Osaka and wrapped an arm around her shoulders. “I felt, at one point, bad, because I’m crying and she’s crying. You know, she just won. I’m not sure if they were happy tears or they were just sad tears, because of the moment. I felt like, ‘Wow, this isn’t how I felt when I won my first Grand Slam.’ I was like, ‘Wow, I definitely don’t want her to feel like that,’” said Williams, who missed last year’s US Open because her daughter, Olympia, was born during the tournament. “Maybe it was the mom in me that was like, ‘Listen, we’ve got to

pull ourselves together here.’” This was only the latest in a series of high-profile conflicts with match officials for Williams at Flushing Meadows. It all dates back to 2004, when an incorrect call during a quarterfinal loss to Jennifer Capriati was cited as the main reason for the introduction of replay technology in tennis. Then came Williams’s infamous tirade after a foot fault in the 2009 semifinals against Kim Clijsters, and a to-do over a hindrance call in the 2011 final against Sam Stosur. “It’s always something,” Williams said. Osaka is just 20, 16 years younger than Williams—and grew up idolizing the American, even asking her to pose for a selfie together at a tournament just a handful of years ago. Their age difference was the second-widest gap between women’s finalists at a Slam in the professional era. “I know that everyone was cheering for her,” Osaka told the crowd, “and I’m sorry it had to end like this.” What was most problematic for Williams on the scoreboard was that she was unable to keep up with a version of herself. Osaka, who happens to be

EMPLOYEES of Nissin Food Products Co. celebrate after the victory of Japan’s Naomi Osaka at the headquarters of the food company, a sponsor of Osaka. AP

coached by Williams’s former hitting partner, hit more aces, 6-3. Osaka hit the match’s fastest serve, 119 mile per hour. She had fewer errors, 21-14. She saved five of six break points. And she covered the court better than Williams did. “She made a lot of shots,” Williams said. “She was so focused.” Indeed, that was what might have been most impressive. Osaka never let Williams’s back-and-forth with Ramos distract her, never wavered from playing terrific tennis. The one time Osaka did get broken, to trail 3-1 in the second set, she broke back immediately, prompting Williams to smash her racket. That cost her a point, because of the earlier warning for coaching. While Williams was adamant that she never receives coaching, her coach, Patrick Mouratoglou, acknowledged afterward that he did try to signal Williams, but didn’t think she had seen him. It’s true that it is something of an open secret in professional tennis that plenty of coaches do get away with offering help without any sort of sanction. “I never had any warning in my career for coaching. Strange to do that in a Grand Slam final,” Mouratoglou said. “Second, we all know that all the coaches coach at every match, all year long, from the first of January all the way to the 31st

of December. We all know it.” When Ramos called both players over to explain the game penalty, which put Osaka ahead, 5-3, Williams began laughing, saying: “Are you kidding me?” Then she asked to speak to tournament referee Brian Earley, who walked onto the court along with a Grand Slam supervisor. Williams told them the whole episode “is not fair,” and said: “This has happened to me too many times.” “To lose a game for saying that is not fair,” Williams said, and raised the idea that Ramos was being sexist: “There’s a lot of men out here that have said a lot of things and because they are men, that doesn’t happen.” It was the second Grand Slam final defeat in a row for Williams, after Wimbledon in July. She’s appeared in only seven tournaments this season since returning to the tour after having a baby during last year’s US Open. Williams asked what she’ll tell her daughter, Olympia, about what happened on Saturday. “I’ll tell her, first of all, if she sees it, that, you know, I stood up for what I believed in. I stood up for what was right,” Williams replied. “Sometimes, things in life don’t happen the way we want them, but always stay gracious and stay humble. I think that’s the lesson we can all learn from this.” AP

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C2 Monday, September 10, 2018

CLEAR SHOT AT NO. 1 N AT stake is chance for Justin Rose to reach No. 1 in the world for the first time with his third title in the Philadelphia area, including his US Open at Merion five years ago. AP

EWTOWN SQUARE, Pennsylvania— Justin Rose could sense the sky getting a little darker, the wind a little cooler and more brisk. Every shot means so much this time of the year, and the last two holes on Saturday at the BMW Championship might mean even more. Rose saved par from an awkward stance with his golf ball in the thick grass on the slope of a bunker. Xander Schauffele left a long putt from the tightly mown collar on the 18th green 8 feet short, and his par putt from there caught the high side of the cup and spun away. When the third round ended, Rose had a six-under 64—six birdies on the front, all pars on the back—for a one-shot lead over Schauffele and Rory McIlroy going into the final round at Aronimink, a course so soft from rain than the average score from 69 players over three rounds was 67.5 At stake is chance for Rose to reach No. 1 in the world for the first time with his third title in the Philadelphia area, including his US Open at Merion five years ago. Jordan Spieth was projected to fall just outside the top 30 in the FedEx Cup, which would

mean missing the Tour Championship and getting some form of penalty from the PGA Tour because of his schedule. He would have one more day to change that. The question lingering amid the clouds: Would there be another round? Rose tried not to think about it. “It was definitely in the back of your mind,” he said. “You could start to feel the weather coming in and getting darker. Kind of had the feel there’s some big weather coming. I said to my caddie, ‘How about tomorrow?’ Just got to get through today.” Starting times were moved up to 7 a.m. on Sunday with hopes that the heavy rain stays away, and that the final round can get in. The forecast has

a small window on Monday morning if needed. If the rain is relentless, there’s a chance of a 54-hole tournament, which has happened only once in the 11 years of the FedEx Cup playoffs. Rose was at 17-under 193, and 13 players were within five shots of the lead. That included Tiger Woods, who missed only two greens in regulation, kept a clean card, shot 66 and let a good round get away. That’s how much of a pushover Aronimink has been this week. McIlroy had a 63 with a double bogey, though he bounced back from that on the very next hole with a 3-wood that barely moved forward when it hit the green, caught the slope of a ridge and left a short eagle putt he converted. “I’ll be ready to play. I’ll be ready to go. I hope

Fil-Chi teams out to defend titles

EMBERS of the Filipino-Chinese Veterans Basketball Association left for Hat Yai in Thailand on Saturday ready and confident to defend their two titles in the 27th Asean Veterans Basketball Tournament, which starts on Sunday. Leading the delegation are Rain or Shine co-team owner Terry Que (Raymond Yu is the

other owner), Ironcon Builders Jimi Lim, Freego’s Eduard Tio and Johnny Chua. Both Que and Lim are convinced they can defend their 60-above and 65-above titles in the annual tournament for players with Chinese descent. “I think we are still capable extending our reign,” Que said. The other members of the 65-above team

we play,” McIlroy said. “I feel like my game is in good shape, and I’d love to get another crack at it out there and have a chance to take the lead. Maybe that chance won’t happen until Monday if it goes to that and the good thing is we don’t have a tournament next week.” Rose made four straight birdies early on the front nine to quickly erase a two-shot deficit to Schauffele, and he finished the front nine birdiebirdie for a 29. Schauffele, hopeful that a victory will give US captain Jim Furyk reason to pick him for the Ryder Cup, stayed with Rose the whole way until his lone bogey on the 18th for a 67. “Still have a good chance tomorrow,” Schauffele said. AP

are former Crispa enforcer Bong de la Cruz, Zotico Tan, Johnny Chua, James Chua, Sonny Co, Antonio Go, Conrad Siy, Eddie Yap and Achit Kaw. Leading the 60s are former San Miguel Beer player Elmer Reyes, Crispa’s Noli Banate, ex-University of the East star Julio Cruz and former La Salle ace Kenneth Yap. Also on the 60s team are Danilo Ching, Aries Franco, Andrew Ongteco, Danny Co, Jose Lao, Elmer Latonio and Ramon Mabanta. The association, however, won’t defend its 50-above crown.

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Monday, September 10, 2018

Lady Bulldogs in hot hoops start

ATIONAL University (NU) opened its drive for a fifth straight crown with a 79-71 victory over University of Santo Tomas (UST) on Sunday in the University Athletic Association of the Philippines Season 81 women’s basketball tournament at the Mall of Asia Arena. The Lady Bulldogs fended off a late Tigresses uprising in the payoff period to earn their first win of the season—and more significantly, their 65th consecutive overall. Ria Nabalan led NU with 26 points, while reigning Most Valuable Player Jack Danielle Animam produced monster numbers with 16 points, 25 rebounds, four blocks and two steals. Rhena Itesi fared well in his match-up with fellow Congolese Grace Irebu. Itesi finished with 11 points, 17 rebounds and three assists, while transferee Kaye Pingol was the only other Lady Bulldog in twin digits with 10 points. Tin Capilit paced UST with 19 points and seven rebounds, while Irebu chipped in 12 points, nine rebounds, three blocks and three assists. Over at the Blue Eagle Gym, Far Eastern University beat last season’s runner-up University of the East, 52-34; Ateneo defeated Katipunan rival University of the Philippines, 64-60; and De La Salle spoiled Ewon Arayi’s coaching debut with Adamson University with a 72-57 victory.

By Ramon Rafael Bonilla

DAMSON University showed how many chinks there are in defending champion Ateneo de Manila’s armor and Far Eastern University (FEU) shot down De La Salle in a blockbuster Day 2 of University Athletic Association of the Philippines Season 81 men’s basketball action on Sunday at the Mall of Asia Arena.

Coach Franz Pumaren and his Soaring Falcons sent a strong message of what they could do this season by wearing down the Blue Eagles, 74-70, for the biggest win in the two-day-old season. FEU, meanwhile, made a De La Salle side miss its big man Ben Mbala so badly to score a 68-61 victory in Sunday’s other game. The Falcons’ victory was a reality check of sorts for the Blue Eagles, who have primed themselves up by holding fort against more seasoned and

PSC, Baguio City ready for Batang Pinoy Nationals “As in all events, there are still some details that need to be fine-tuned, but in all, we are ready and Baguio City is a gracious and cooperative host,” Ramirez said. Secretariat head Gloria Quinto said members of the working committee are already in Baguio City to roll out the carpet for the participants a week ahead of the games. Baguio City Mayor Atty. Mauricio Domogan and Ramirez will open the games.

UAAP changes RICK OLIVARES bleachersbrew@gmail.com

BLEACHERS’ BREW I’D have to say that was one of the best opening ceremonies in recent University Athletic Association of the Philippines (UAAP) history. And how big is it that Steph Curry was present? Massive. And a huge crowd (18,535 was the announced gate attendance) on hand to boot not to mention those like me who saw the proceedings on livestream. Bravo. Good job, National University that has really pushed the envelope. And there are lots of stuff also going on in the back room. I have to say that I am in agreement with the limiting the number of bass drums. I love them drums, but having too many is just adding to a wall of sound that has become annoying and at times makes the game unenjoyable. You cannot have any conversation without yelling in someone’s ear. You want to cheer, use your voices and do not let the drums cover or make up for the lack of vociferous fans. I also applaud that finally the league is getting its own referees. This means they will only officiate UAAP matches—men’s, women’s and juniors tourneys—and should they be sanctioned for whatever reason, they aren’t going

HERE’S no need for Jerrick Balanza to be on the court to make his presence felt for Letran. Balanza is fighting his own battle outside of the basketball court after doctors saw a tumor in his brain. As a result of his medical condition, Balanza was the inspiration in the Knights’ 99-82 victory over the Arellano Chiefs last Thursday to stay in the hunt in National Collegiate Athletic Association (NCAA) Season 94 seniors basketball action. For showing tremendous strength in his own battle and serving as an inspiration for

his team, the NCAA Press Corps named Balanza as its Player of the Week. “Jerick is always with the team. He’s very much part of it,” Letran Head Coach Jeff Napa said. “He’s always with the team—in practice, in games, in the dugout.” Last Friday Balanza underwent a successful operation to remove the tumor and is awaiting the biopsy result. The operation lasted for four and a half hours and the lanky swingman is now recovering. Not only is Letran behind Balanza, but the entire league.

“We wish and pray for nothing but the best for Balanza,” Head Coach Boyet Fernandez of San Beda said. “It’s unfortunate and we wish for his fast recovery.” Letran skipper Bong Quinto extended his gratitude to all those supporting his teammate. “Jerrick needs us all at this point in his life and I thank the entire NCAA, and even our rivals for their support,” Quinto said. A fund-raising drive for Balanza’s recovery in ongoing. Donors could course their contributions to Colegio de San Juan de Letran Inc.’s BDO-Intramuros account (4500003129).

stronger opponents in the William Jones Cup and by dominating a preseason tournament. Adamson University clamped down on Ateneo’s scorers—a play typical of Pumaren at De La Salle—while getting active with the ball more often to join early winners University of the Philippines and National University that kicked off on Saturday with what could go down as the best opening ceremony so far in the league. The Blue Eagles were forced to 21 turnovers and although the Falcons had 19, their stability at crunchtime led to their victory. A trey by Jerrick Ahanmisi made it at 53-46 for Adamson University midway the third period. But Ateneo clawed back to tie at 70-all via on Thirdy Ravena’s tip-in with less than a minute to play. Then came Papi Sarr, who had a bad

shooting day but converted on a putback to make it 72-70, and Sean Manganti, who was also misfiring the entire match, nailed two free throws to seal the victory. Ahanmisi finished with 23 points and four rebounds, while Vince Magbuhos added a 10-point, 10-rebound performance for the Soaring Falcons. Matt Nieto had 21 for the Blue Eagles. Without Mbala, the Green Archers hardly plugged a gaping hole in the middle and succumbed to the rampaging Tamaraws. FEU Coach Olsen Racela pounced on the Green Archers and made Aljun Melecio work for his shots. “It’s a big advantage for us [without Mbala] because we just focused on Melecio. De La

Salle actually has many weapons, but we pride ourselves on team defense,” Racela said. But it wasn’t a smooth ride all the way for FEU. The Green Archers were slightly in control with a 26-25 edge at the break until Arvin Tolentino scattered 11 of his team-high 13 points in the second half to give FEU the driver’s seat. Melecio, who was shackled to 11 points on a 5-of-15 shooting, halted FEU’s run and made it a four-point game, 58-62, with 1:22 remaining in the third period. Tolentino sparked a late-game turnaround with a booming triple that made it 58-56 for FEU with 3:26 remaining, before Jasper Parker and Hubert Cani engineered a 7-0 Tamaraws blitz to seal the outcome.

FALCONS OUTSOAR EAGLES

thrilling finale at the CJH Golf Club in Baguio City recently. The Antipolo-based is led by captains Gene Lim and Mari Imperial and General Manager Raymond Bunquin. Manila Southwoods and Sherwood Hills, the two other clubs in the four-leg tournament, finish third and fourth, respectively.

TEAMMATES, LEAGUE, SCRIBES UP FOR BALANZA

FAR Eastern University’s Prince Orizu (left) gets physical with De La Salle’s Brandon Bates. ALYSA SALEN

GOODWILL CUP WINNER Forest Hills emerges overall champion of the 2018 Goodwill Cup Series after beating Camp John Hay (CJH) in a

HE Batang Pinoy National Finals get going on September 15 with more than 7,000 delegates—athletes, coaches and officials—from the country’s 17 regions converging at the Athletic Bowl in Baguio City. Philippine Sports Commission Chairman William Ramirez is leading the conduct of the seven-day multisport meet that is one of the major grassroots development program of the sports agency.

to slide sideways to one of the alphabetical soup leagues like nothing happened. I first heard of this plan last year from Rebo Saguisag and Vic Ycasiano and it’s good to see it finally implemented this season. Now, I wonder does this mean that they will now be viewing game film after each and every game so they can determine what they called right and wrong including what crucial things they missed? I know they held a variety of trials to get these referees. That’s good. That’s pretty much standard for all leagues and it should be. My worry though is their lack of big game experience. One game day in and I already saw some poor calls. Strange though they went back to the changing of commissioners every year. I think they should get people of integrity and impeccable nature. Come on, this is the league’s integrity we are talking about. I do like Saguisag being still around. It is good there is continuity. But the league should continue to work with people with no affiliation with schools. That is good so there are no biases. I recall about a decade ago, I had a conversation with the late Bobby Paguia of NU.

Ramirez divulged that the agency is trying to upgrade the delivery of the event. Ramirez said physical innovations are being injected into the Batang Pinoy, including giant LED walls that would indicate real-time updates of the games. President Duterte has been invited to grace the opening ceremony along with Philippine Olympic Committee and national sports associations officials. This was after I lambasted the league for one of its controversial rule changes. The Paguia family have been friends for a long time owing also to the late Bulldogs Coach Sonny Paguia and I being neighbors for a good 15 years. Tito Bam as Bobby was called for short, told me, “Rick, you’re right, but give us a chance to get things right.” I hope so because for a while it seemed that the league was beset by all these controversies and temporary restraining orders and whatnot that threatened to undermine the league. What I am also surprised at is they did away with the Masteral student rule where for one to suit up for a final playing year, he had to previously been enrolled in their school. I was informed that the rule was stricken out last season. I think it is good and I hope it stays that way. To my recollection, the last masteral studentathletes to suit up prior to NU’s Troy Rike were Martin Urra and Mike Gavino who left La Salle and played for University of the Philippines (UP) in their final playing year. Now, I wonder what the plan is for tickets. They should sell tickets for all games separately. Say, if a fan wants to watch a UP versus University of the East game that is one ticket. If they want to watch the second match—say, the NU versus University of Santo Tomas match—then that is another ticket. This will allow more fans access to tickets. This means they should adjust game schedules and make them either earlier or push the second game an hour back. Whatever it is, just look into the situation of the tickets to make more available to the fans. To summarize my opening weekend thoughts, I like what I am seeing. It should be another great season.

POINT GUARDS TOP HOOPS CLASS

PRINGFIELD, Massachusetts—Lefty Driesell had the crowd laughing. Dino Radja fought back tears. Blue Devils and Tar Heels brought their rivalry to the Basketball Hall of Fame, and Ray Allen made a peace offering to his spurned Celtics teammates. And they did it with an assist from three of the greatest point guards in National Basketball Association (NBA) history. The Springfield shrine inducted its 13-member Class of 2018 on Friday night, recognizing the players, coaches and contributors who broke records and barriers in equal measure. Rick Welts, the NBA’s first openly gay executive, went in along with Charlie Scott, the first African-American to receive an athletic scholarship at North Carolina. Ora Mae Washington was honored for a pre-World War II career in which she won 11 consecutive Women’s Colored Basketball Championships. Tina Thompson was the first-ever draft pick in the Women’s National Basketball Association. Also inducted were New York Liberty Coach Katie Smith, the leading scorer in women’s professional basketball history; longtime NBA executive Rod Thorn; and Grant Hill, the first Duke player in the Hall. “It’s a real honor to go in with all of you guys,” said Steve Nash, who was inducted along with fellow point guards Jason Kidd and Maurice Cheeks. “I was never even supposed to be here,” said Nash, who was born in South Africa and grew up in Canada and went on to win back-to-back NBA Most Valuable Player awards. “Play the long game. You don’t have to be the chosen one. If you’re patient, the plateaus will become springboards.” Allen gave a shoutout to Celtics teammates Kevin Garnett and Paul Pierce, calling the 2008 NBA championship teammates “future Hall of Famers”; both posted congratulatory messages on social media, a thaw in the relationships that have been icy since he left Boston for Miami to chase another title in 2012. But Allen spent most of his speech describing a life “repeating those boring old habits” that made him the most prolific three-point shooter in league history. “What’s so incredible about it is that I loved it,” he said. “I wouldn’t have rather been anywhere else in the world.” Kidd trudged up the steps into Springfield’s Symphony Hall carrying a baby stroller. Nash carried his son in his arm. Dikembe Mutombo stopped to take a selfie with Julius Erving and Kyrie Irving. Mark Cuban and Dirk Nowitzki made their way up the red carpet. Larry Bird was a late arrival. Wayne Gretzky showed up in the video introducing Nash, crediting him with spreading the love of basketball across the hockey-loving country. “From Vancouver to Newfoundland,” the hockey Hall of Famer said, “he gave them the opening and belief that they could play in the NBA.” Welts was a pioneer of a different sort. The Golden State Warriors president and COO, who started in the NBA as a Seattle SuperSonics ballboy, read a letter that he wrote to his 10-year-old self, telling the boy he will have his dream job by 24. But risking it to come out as gay in 2011 “will be the most important thing you ever do.” Radja, a champion in three different European leagues and two-time Olympic silver medalist, said he cried for 10 days when he learned he would be inducted in the Hall and choked up as he began his speech. “Playing basketball was easier,” he said. Cheeks also struggled to hold back tears, at one point breaking down until his presenter, Dr. J., stepped forward to console him. “Charles [Barkley] told me not to cry, but I’m about to talk about my mother right here,” Cheeks said, calling her “My very first coach, Mama Cheeks.” Driesell’s meandering speech was such a crowdpleaser that every time he stopped to ask if his time was up, the crowd shouted back: “No!” Scott followed Driesell and Hill and said if the Duke guys were going to go over their time limit, the Carolina guy can, too. “Duke and a short speech is an oxymoron,” said Scott, who broke the color barrier in Chapel Hill and brought the Tar Heels to back-to-back Final Fours before winning the 1976 NBA title in Boston. “I am very proud to be standing here as a black man that took a patch that wasn’t easy, but was the right path to take.” Thorn played eight years in the league, coached in both the NBA and the Amercian Basketball Association and has been in basketball for half a century. But he knows it was the selection of Michael Jordan when Thorn was the Chicago Bulls general manager in 1984 that cemented his place in basketball lore. “Thank you, Michael, for your friendship,” Thorn said. “I know I wouldn’t have a Wikipedia page without you.” AP RAY ALLEN (from left), Jason Kidd and Steve Nash strike a pose after the induction ceremonies at the Basketball Hall of Fame. AP

Sports

SIMON YATES says he doesn’t feel like he is the dominant rider at the Spanish Vuelta. AP

BusinessMirror

| Monday, September 10, 2018 mirror_sports@yahoo.com.ph Editor: Jun Lomibao

YATES BACK IN RED Simon Yates withstood repeated attacks from a small group of seven riders first up the first-category Les Praeres summit before the English cyclist opened up a small gap on the final 300 meters of the grueling ascent.

Khan recovers to beat Vargas

IRMINGHAM, England—English welterweight Amir Khan had to climb off the canvas to continue his comeback with a points win over Samuel Vargas on Saturday. In his second fight since returning to the ring after a two-year absence, Khan was knocked to the floor in the final seconds of the second round. The Colombian-born Vargas, a former North American champion, had already been put down himself when he stunned Khan and the capacity crowd. But, with potential next opponent Kell Brook watching at ringside, Khan recovered on his stool, came out and floored Vargas again. The 31-year-old Khan (33-4), a former world super lightweight champion, was unable to finish the job and eventually had to settle for a unanimous points victory from the grueling fight. Vargas’s record dropped to 29-4 plus two draws. AP

AVA, Spain—Simon Yates recovered the lead of the Spanish Vuelta after pulling away from his title rivals on the final uphill push to win the mountainous 14th stage on Saturday. Yates withstood repeated attacks from the small group of seven riders first up the first-category Les Praeres summit before the English cyclist opened up a small gap on the final 300 meters of the grueling ascent. Miguel Angel Lopez and Alejandro Valverde crossed seconds later, followed shortly by Thibaut Pinot and Nairo Quintana. “I chose my moment really well at the very final,”Yates said. “I didn’t look back until it flattened up a bit. I am really happy for the win. I gave it all I could at the end.” Yates, riding for Michelton-Scott, finished the 171-kilometer (106-mile) stage in nearly four-and-a-half hours and reclaimed the red jersey that he wore from Stages 9 to 11. Valverde is second overall at 20 seconds behind, followed by Movistar teammate Quintana at 25 seconds back. Lopez is fourth, 47 seconds off the pace. In May Yates led the Giro d’Italia for 13 days before finally finishing over an hour behind winner

Chris Froome. Jesus Herrada led the Vuelta for the previous two days. Herrada faded fast midway through the stage’s five climbs when Vincenzo Nibali and his Bahrain-Merida team picked up the pace and scattered the peloton. Michal Kwiatkowski of Team Sky broke away with five other riders early in the stage and went all alone until caught before the last ascent. The three-week race stays in the northern Picos de Europa mountains on Sunday. The 178-km ride starting in Ribera de Arriba finishes atop the beyond-category

Lagos de Covadonga, which is considered an iconic Vuelta summit. “Tomorrow could be a decisive day,” Valverde said. “It is a hard stage, with a different ascent from today, and it is the last of three days in the mountains. So anything can happen.” The Grand Tour ends in Madrid next weekend. Yates, meanwhile, told Cyclingnews that he doesn’t feel like he is the dominant rider at the Vuelta despite taking the lead for the second time in the race. “We’ve only had one long climb before tomorrow, on Stage 9, so tomorrow is a different kind of effort,” Yates told reporters after the stage. “If I have the same legs as I did today then I’ll be happy. The team was very strong again today but I don’t feel like I’m dominating. The gaps are still small, and the GC is still very close. We have a long way to go.” Yates returned to the top of the standings when he attacked an already select group of favourites inside the final kilometer. Until then, he had been holding station and reacting to the moves of others as the gradients really ramped up near the top. Movistar, in particular, had strength in numbers with both Valverde and Quintana

in the front group, and Giro d’Italia stage winner Richard Carapaz for

assistance. Yates admitted afterward that he had been concerned by the number of Movistar jerseys but did his best to focus on his own efforts. “They had a big advantage in numbers, which I was a bit nervous about. It was ok. I did my own race and I chose my own moment to attack,” Yates explained. “I knew nothing of the climb, except for a video that I watched and a few pictures that I saw this morning. That’s why I was very conservative at the bottom, because I wasn’t sure if the climb was much steeper or shallower, so it was difficult to judge the effort. I stayed calm and waited for the moment to attack.” There is still one day to go, and a challenging ride up the 11-km Lagos de Covadonga in a Stage 15 that contains almost 4,000 metres of ascent in total, but Yates looks set to end the second week of the Vuelta in the same place as he finished it at the Giro d’Italia—in the race lead. While the position in the overall classification is the same, physically Yates says that he has been in a different place compared to May. “I haven’t really [changed anything]. I’m the same rider, the same person, I have the same name. It was really just my preparation coming into the race,” he explained. “I came in with much different preparation. I’m looking to build form here, into the third week onward and into the World Championships. At the Giro, I arrived in form and ready for day one. We’ll see how that goes. There’s still a long way to go but I’m feeling good.” While Yates has been at the forefront of the race, his twin brother Adam has been keeping a low profile in the opening two weeks of the Vuelta a Espana. Adam finished over 15 minutes behind his brother on Les Praeres and sits an hour and a half down on him in the overall standings. Simon says that he is confident in his brother’s form will be there to help him in the coming stages. AP and Cyclingnews

TWO-TIME Olympic taekwondo champion Steven Lopez gets permanent ban for sexual misconduct involving a minor. AP

BANNED FOR LIFE

ENVER—The US Center for SafeSport has permanently banned two-time Olympic taekwondo champion Steven Lopez for sexual misconduct involving a minor. The center has been investigating Lopez for about four months and made his ban permanent on Thursday night.

He can appeal. He was suspended in May, a few days after four women filed a lawsuit in federal court accusing USA Taekwondo and the US Olympic Committee of sex trafficking. The lawsuit alleges the organizations were long aware

that Lopez and his brother, Jean, were sexual predators, but kept sending young women with them to competitions and practices. The plaintiffs have since added the US Center for SafeSport as a defendant. Jean Lopez has also been banned on an interim basis. AP

Glorious God

LORIOUS God, in Jesus You have called us out of darkness into Your marvelous light. In joyful trust, we pray: Faithful God, hear our prayer. Inspire catechists, religion teachers, theology professors and give them joy in their ministry to the Church. Animate the creativity of musicians, poets and religious artists. Watch over those who suffer from Alzheimer’s or dementia, and cheer their caretakers. May God accept our prayer and praise and lead us to share everlasting life in Jesus, through the Holy Spirit. Amen. GIVE US THIS DAY SHARED BY LUISA LACSON, HFL Word&Life Publications • teacherlouie1965@yahoo.com

Editor: Gerard S. Ramos • lifestylebusinessmirror@gmail.com

RENZ REYES

Life BusinessMirror

AND THEN SOME: WHY YOU NEED THESE AROMATHERAPY OILS IN YOUR LIFE D4

Monday, September 10, 2018

CHED STUDIO

The finest of the neophytes TOTA PULCHRA MISS CHARLIZE

CATRIONA GRAY is wearing the Ever Bilena’s Matte Nude Lipstick in Dolce

@misscharlize

How to pull off the ‘no makeup’ makeup look

N its second edition, the Bench Design Awards (BDA) is once again propelling three new names to the forefront of fashion. The 2018 winners—Christian Edward Dalogaog of Ched Studio, Sherwin “Otto” Sacramento of Ottomondi and Renz Edward Reyes— will be sent to Japan to represent the Philippines at the Amazon Tokyo Fashion Week Spring/Summer 2019 Collections in October. Besides showcasing the best collections from an exceptional batch, the three winners have links to the fashion citadel, Italy. Ched Studio, after being profiled on Vogue Italia’s web site, showed at Pitti Immagine Super Trade Show during Milan Fashion Week Spring/Summer 2018, chosen in collaboration with Vogue Talents under Sara Maino, deputy editor in chief of Vogue Italia. Ottomondi’s Sacramento’s impressive résumé includes working in Italy for Marni, Trussardi, Moncler and Prada. He also conceptualized and organized events, mostly with Vogue Italia. “That gave me the opportunity to work with Franca Sozzani, the late editor who was one of the most generous people I have met in the industry. Despite her top position, she was a very kind person. She could tell immediately if a person was creative, and she respected that,” Sacramento shared. Reyes, meanwhile, was fascinated with the visually lush, cult horror flick Suspiria (1977), directed by the legendary Italian director Dario Argento. Luca Guadagnino’s (Call Me By Your Name) personal interpretation, however, screened at the recent Venice Film Festival, is being panned by critics. Dalogaog and Reyes are products of the Fashion Institute of the Philippines, and its founder, designer Shanon Pamaong, is mighty proud: “Our mentorship program for graduating students, as well as our fashion courses, help ready our students to the difficult demands of the fashion industry today. We take pride in our techniques and practices, which are simplified in order to produce garments effectively but also taking in consideration the quality and the proper fit. We also liberate our students to find and express their own aesthetics through clothing.” The winners will be flown to Tokyo, all-expenses paid, by Bench big man Ben Chan, a strong supporter of Filipino neophyte fashion talents. They will also benefit from trainings at Tokyo’s garment and textile factories. “Winning at the Bench Design Awards definitely has a huge impact on my career. I don’t think I would get as much following as I do today if not for the BDA, and that’s really important for a young, growing brand,” said Jaggy Glarino, one of 2017’s winners. “I’m working on a new collection. I’m thoroughly working on my brand image, and would really wish to be more known internationally.”

OTTOMONDI

CHED STUDIO: ‘MANILA: REFLECTION OF THE PAST IN CONTEMPORARY FASHION’ “THE collection puts a strong focus on the power of the skirt and the womanly shape; a movement away from obvious masculinity. The body is draped to form, to occupy space and create volume. We manipulated our traditional callado embroidery, which takes 30 to 40 hours to finish, to create a new pattern on top medium-weight cotton gingham fabric, to contrast and blur the lines,” explained Dalogaog, 27, the creative director of Ched Studio and Ched Studio Bespoke. Some of his creations has eye-catching imagery taken from an 18th-century book on Filipino traditions, rendered and digitally printed on nylon taffeta from Japan and embroidered “to create texture, layers of reference and levels of ideas.” “We are presenting the same collection in Tokyo but making it bigger and more impactful. The show is going to happen in one of the larger venues during Fashion Week. We need to deliver and show only the best,” said the young designer. OTTOMONDI: ‘HAJIME’ “AS a kid in the 1980s, I was influenced by the aesthetics and details of classic male elegance thanks to my father, a bespoke tailor from Tarlac, where I grew up,” said Sacramento, 39. “Now I get inspired by architecture, fine arts and my travels in general. I’m obsessed with simplified forms, rational and functional shapes, different perspectives of beauty and details.” His BDA collection derives inspiration from the image of a cavalcade of modern warriors trooping down the mystical karst mountains of Yangshuo County in Guilin, China. The warriors sport utilitarian outfits with local fabric like inabel incorporated, the silhouettes influenced by the ancient battle gear of the samurai. The panels and patchworks bring to mind a soldier’s body armor. He also made “monolithic-like footwear from thick blocks of rubber embellished with braided local fibers in solid colors.” “We source and make everything locally. Coming back to the Philippines after almost two decades, work

here was both a challenge and an exciting journey. My network is very limited in Manila, so the production was a real challenge, especially to reach the level of details that I’m used to. The people I met in this journey and their skills were the real surprise. I must say that this experience is helping me to rediscover my roots and appreciate the tremendous work of Filipino artisans,” he said. “Winning BDA was totally unexpected. I didn’t really take it as a competition. I joined because I wanted to have a window to show my work. I think it’s really great that we as Filipino designers have a platform like that to express our creativity and reach a wider audience,” Sacramento shared. RENZ REYES: ‘LIMBO’ REYES had the most superb embellishments among the entries. Unsurprising, since he designs embroideries, beading and fabric manipulation/ textures. “I really wanted to make a visual and tactile collection. I focused on developing embroideries and textures for the clothes, as I want to highlight the craft of embellishments, which is my expertise. It’s a very feminine collection with a hard visual edge. I wanted the collection to be graphic and bold, but in a thoughtful way,” the Far Eastern University advertising arts grad said. The captivating collection was inspired by the high melodrama of vintage giallo cinema, specifically Dario Argento’s Suspiria. Giallo is an Italian genre in film and literature with horror, mystery, supernatural and thriller elements. The original starred Jessica Harper as aspiring dancer Suzy Bannion and Joan Bennett as Madame Blanc, the witch. The 2018 remake stars Dakota Johnson and Tilda Swinton. “I got most of my motifs all throughout the production design of the 1977 film. The dizzying architecture and graphic nature of the art within the film proved very inspirational,” said Reyes, a Preview Emerging Fashion Talent Awardee. “I’ve never won anything, so winning the Bench Design Awards is quite a surreal experience. I really take it with a sense of gratitude and honor,” Reyes said. n

LOOKING your best natural self does not need expensive skin treatments or regular trips to the salon. The secret lies in confidence coupled with a few essential makeup products to sport the barely there makeup look. The country’s leading cosmetics brand, Ever Bilena (www.everbilena.com.ph) shares some useful tips and essential makeup products to keep in your makeup bag to pull off the “no makeup” makeup look: n TIP #1: WASH, RINSE, MOISTURIZE. To truly achieve the all-natural makeup, forego the foundation. Instead, prep the skin by cleansing it with your preferred facial wash then exfoliate to brighten and smoothen your complexion. Finish off with a moisturizer and sunscreen so that you face is protected and fully hydrated. n TIP #2: CONCEAL. The trick to a healthy and fresh complexion is spot-concealing any blemishes and redness using your concealer brush. However, for dark circles, use your ring finger to pat on the concealer as it has the lightest pressure. n TIP #3: GROOM THE BROWS AND LASHES. One way of opening up the eyes is by grooming the brows. This way, you only need to brush up the brow hairs using a spoolie, or brow mascara, and you’re good to go. Add definition to the lashes by swiping it with mascara. n TIP #4: CHOOSE SHADES THAT ARE CLOSE TO YOUR SKIN COLOR. For bright, wide-awake eyes, apply eye shadow that’s close to your skin tone. Your safest bet is light brown. Gently apply shadow from the lash line and blend upwards, fading as it gets closer to your brow. For cheeks, cream blush easily gives the naturallooking glow. With a synthetic brush or your fingers, apply blush on the apples of the cheeks and blend upward toward hairline. This makeup trick instantly makes you look youthful. n TIP #5: GO FOR EVER BILENA’S MATTE NUDE LIPSTICK. The last step to complete the barely there makeup look is a good nude lipstick. Luckily, Ever Bilena offers a new line of matte nude lipsticks, with each infused with antioxidants and moisturizer so the lips feel soft, smooth and supple despite the matte formula. Retailing at P165, it comes in six colors: Dolce, Amore, Fia, Bellissima, Caramello and Baci. Each shade is perfect for different skin tones. Looking your best natural self is easily achievable with the right tools.

Monday, September 10, 2018

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Newly opened aesthetic clinic in BGC is all about that Glow By Pauline Joy M. Gutierrez

FACES of Glow: Chieng Mai Medina (from left), Daniel Matsunaga, Camille Dizon Padilla and Madi Ross

HE idea behind Glow Skin Clinic, the newest facial aesthetic center in Bonifacio Global City, was to offer affordable skin-care treatments that don’t scrimp on quality. “The branding of Glow Skin is to give you a sense of lightness where you don’t come in and fret, ‘Oh, I’m going to spend so much in here,’” owner Camille Dizon Padilla told BusinessMirror at the brand’s recent flagship clinic opening, which is at the second floor of the Uptown Mall. She revealed, “I’d been jumping from one clinic to another and I just couldn’t find the one that best suited my needs and wants, and I thought, ‘I can’t be the only one who feels this way.’ Around five years ago, I really started thinking about [opening Glow] and I started my research then on.” Glow Skin Clinic has 12 facial services divided into different categories: brightening, rejuvenating, moisturizing and even contouring. For brightening, there’s the Glow-Up Laser Light Facial, the Jet Light Facial and the Crystal Carbon Peel by Alma Q. The specialized Glow-Up Laser Light Facial utilizes the Fotona Starwalker technology, a patented laser system which photo-acoustically breaks apart skin pigmentations into smaller, more easily eliminated particles. The clinic’s moisturizing treatments include the oxygen-based Air Light Facial by BT Accent AIR, a micronized application system that improves skin suppleness and hydration; as well as the HydraFacial Delight, which bathes skin in intensive brightening serums. For those who want something more intensive, the clinic offers the Contour Facial by Pollogen Legend, a noninvasive RF treatment that contours and slims the face, making skin more svelte and elastic, resulting in a uniquely youthful glow. Instant rejuvenation, on the other hand, is possible with the Madonna Glow by Oxylight, a premium facial that incorporates six noninvasive beauty treatments into one, which makes for the ultimate facial pampering. There’s also the Essential and Signature Facials, Freshen Up Facial by OxyGeneO+, Lift Off by Sygmalift and the Clear+Brilliant Facial. Padilla stressed that while many see facial treatments as a luxury rather than a necessity, it is a crucial beauty regimen as it improves the skin’s tone, texture and elasticity through cleansing, exfoliating,

By Eugenia Last

CELEBRITIES BORN ON THIS DAY: Ryan Phillippe, 44; Colin Firth, 58; Amy Irving, 65; Joe Perry, 68. HAPPY BIRTHDAY: You can sail into the future with optimism. All the hard work you’ve put in will pay off. Don’t let what others do deter you from following your dreams. A setback can be avoided if you are cognizant of living within your means and being realistic when choosing your friends and those you do business with. Your lucky numbers are 7, 10, 18, 26, 32, 35, 43.

ARIES (March 21-April 19): Consider how best to share your feelings with the people you love or work alongside. Have a positive strategy in mind, and you will be able to bring about the changes that will make your relationships better. HHH

TAURUS (April 20-May 20): A change will set you on a new path. Express your thoughts and concentrate on what you will need to do in order to reach your destination. Personal improvements are favored and will encourage you to do your best. Romance is highlighted. HHH

GEMINI (May 21-June 20): Keep moving forward. Get things done and plan activities that will help you get rid of any frustration or anxiety you feel. Talk less and do more. Don’t believe secondhand information. Do what makes you feel most comfortable. HHHHH

CANCER (June 21-July 22): Take pride in what you do. Run your home efficiently to cut your overhead, allowing disposable funds you can spend on entertainment, family and your own personal needs. Romance is on the rise and will help to enhance your personal life. HHHH

LEO (July 23-Aug. 22): Be reluctant to make a change that could pose a risk. Someone will try to convince you that you have nothing to worry about. Personal loss due to unexpected last-minute changes will leave you high and dry. HHH

nourishing and hydrating. “It’s also important that you get the Essential Facial alongside your specialized treatment because it is the most basic skin cleaning [you can get]. Especially for us women who wear makeup and who are exposed to pollution, it’s important that our skin gets cleansed professionally,” she said, adding, “Of course, we advice our customers on what their skin needs.” Glow Skin Clinic’s services are delivered by welltrained professionals using world-class equipment that came from the US, Slovenia and Europe. “We’re very specialized because we are only offering facials, and that’s why we’ve chosen the best machines in the market at the moment. We also trained our people for a very long time and our concept is not very easy to replicate. For example, when you come in to, say,

aesthetician one and after a year, you get another facial with aesthetician two, you get the same service: the timing and technique is the same.” With regards to the marketing of their brand to different demographics of the beauty consumer segment, Padilla said: “I think we’ll attract the millennial segment the most because our location is very strategic. Still, our treatments have different purposes and we don’t target a specific age market. Our treatments have been conceptualized with an understanding of what people need, and would definitely give them the lift they need.” Concluding, she said, “Glow Skin Clinic was conceived because we want Filipinos to embrace that skin care and self-love are not vain luxuries, but celebrations of their natural glow from within.” n

THE Red Charity Gala, the country’s most awaited annual fashion affair for a cause, celebrates a milestone this year, its 10th anniversary, on October 27 at the Grand Ballroom of The Manila Marriot Hotel. The inimitable Rajo Laurel will be the designer in focus. Society figures Tessa Prieto-Valdes and Kaye Tinga, Red Charity Gala’s founders, have been unwavering and tirelessly committed to championing the best in Filipino creative talents in fashion, while supporting the Philippine Red Cross and the Assumption High School Batch 1981 Foundation since they held the first event in 2008. This year the Red Charity Gala is partnering with Bench and The Manila Marriot Hotel, as main presenter and copresenter, respectively, for what may yet be its most unforgettable night. For his special collection, Rajo, a creative and entrepreneurial powerhouse who is marking his 25th year in the fashion industry, will pay homage to Philippine history and culture, its roots and origins, through the persona of his modern muse—the intelligent and quietly powerful Filipino woman. Trained in the New York Fashion Institute of Technology and the Central Saint Martins in London,

VIRGO (Aug. 23-Sept. 22): A change will do you good. Traveling for business or educational purposes will be informative. A positive attitude will win favors and help you reel in the support you need to move forward with your plans. Social and family time are encouraged. HHH

LIBRA (Sept. 23-Oct. 22): Listen to the advice offered. Someone with more experience will offer interesting alternatives. Consider the best way to move forward without jeopardizing your life physically, financially or emotionally. HHH

SCORPIO (Oct. 23-Nov. 21): Give-andtake will work wonders for you. Know what you want and what’s expected of you, and prepare to negotiate on your own behalf. You have plenty to gain if you use your imagination and offer innovative alternatives. HHHH

SAGITTARIUS (Nov. 22-Dec. 21): Work hard and protect your position, reputation and assets. Someone you thought you could trust will disappoint you. Share only what you feel is necessary. HHHH

Red Charity Gala marks decade with Rajo Laurel TESSA PRIETOVALDES and Kaye Tinga with Rajo Laurel

Today’s Horoscope

Rajo has received several local and international awards for fashion design and entrepreneurship, his creations infused with elegance, romance and luxury—modern yet feminine, a blend of hard and soft elements. Rajo’s works are always new, organic, sensual and almost pieces of art. He joins fellow Filipino designers and past honorees Dennis Lustico, Furne One, Michael Cinco, Cary Santiago, Ezra Santos, Jojie Lloren, Lesley Mobo, Chito Vijandre and Joey Samson, all world-renowned talents. This year the Red Charity Gala 2018 will have a new beneficiary, the MINT Fashion School, an innovative partnership between Lesley Mobo and the Meridian International College. A full four-year scholarship in the school will be awarded to aspiring and deserving students of fashion. On its 10th year, the Red Charity Gala, Manila’s premier fashion and philanthropic event, is bigger than ever—with an all-new and grander venue, more generous sponsors and a new beneficiary. It also remains committed to bringing Philippine fashion and Filipino creativity to the world stage while touching the lives of others in a meaningful and profound way.

CAPRICORN (Dec. 22-Jan. 19): Take care of business. Don’t leave anything undone. Bring about the changes that will make you feel good. Accomplishment deserves to be rewarded. Choose to celebrate with someone who shares your victory and supports your effort. Romance is highlighted. HHHHH

AQUARIUS (Jan. 20-Feb. 18): Just do what has to be done. Don’t fall into someone’s trap and take on responsibilities that don’t belong to you. Stay focused on what will benefit you the most and avoid getting involved in someone else’s mess. HHH

PISCES (Feb. 19-March 20): Listen to what’s being said and speak on your own behalf. Stand up for what you believe in and challenge anyone or anything you feel is unjust or detrimental to your life, environment or future prospects and prosperity. HHHHH BIRTHDAY BABY: You are innovative, perceptive and resourceful. You are dedicated and assertive.

‘another great puzzle’ BY TIMOTHY E. PARKER The Universal Crossword/Edited by Timothy E. Parker

ACROSS 1 Messy one 5 In ___ of (rather than) 9 Expansive 14 Sound the hour 15 Be a launderer 16 Better than punctual 17 Some great things 20 Lace attachments 21 It’s a plus 22 Jacket variety 23 “...___ we forget” 25 Poem of homage 28 Loud “Psst!” kin 29 U-turn from ivory 31 Santa ___ (famous ship) 33 Crash preceder? 34 Man’s name tag? 35 More great things 39 Paper’s space measurement 40 Boston iceman 41 Totally confuse 42 Music sign 43 Endings for “shoo” or “run”

6 It can provide a buzz 4 47 Law of films 48 Jaded one 50 Back at a track 53 Capri’s blue thing 54 Even more great things 58 Particular regions 59 Actress Paquin 60 Oklahoma city 61 Was a prelude 62 Milker’s target 63 Gives the go-ahead DOWN 1 Diving sound 2 Major or American 3 Annie with a gun 4 Require a tourniquet 5 Container parts 6 Bank suggestion 7 Many millennia 8 Nervous 9 A Truman 10 Presidential competition 11 What Handel handled well

2 Peak of skiing? 1 13 Turn blond 18 Cheap ship section 19 Suffix for “tough” 23 Nutty bird? 24 Having showered 10 minutes ago? 26 Big name in fashion 27 They’re hear for you? 30 French cheese 31 Average at best 32 Soon, old-style 33 Latin list-ender 34 Be shocking 35 Squeal 36 Go by pony 37 Not all paid up 38 Do some arm-twisting 42 Burn preventer on a beach 43 Speak monotonously 44 Simpleton 45 Lectures 47 Great thing to jump for 49 Sing on 12-Down 51 Isaac’s firstborn

2 5 53 54 55 56 57

Recipe amt. Little bugger? Actress Gadot Have actuality Common bill Gene-stuffed stuff

Solution to Friday’s puzzle:

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Monday, September 10, 2018

Carlo Aquino’s star continues to shine LOVE TURNS DEADLY IN ‘IKA-5 UTOS’

BEGINNING today, September 10, GMA introduces a new spectacle in its top-rating afternoon lineup, Ika-5 Utos. The new drama delves into a harrowing hazing incident that led to the death of a dear son, uncovering old wounds between three mothers and their respective families. Its story is one of deep passion, lust and heartbreak—all of which could poison a soul leading to somebody’s murder. Headlining the intriguing series are three families: The Lorenzo family led by Jean Garcia as Eloisa, a devoted wife and a doting mother; Neil Ryan Sese as Eloisa’s philandering husband; Jeric Gonzales as Eloisa’s loving son and a law student who is also a frat member. The Buenaventura family composed of Tonton Gutierrez as Emil, a humble college professor and a loving husband. Before his marriage to his selfish and ambitious wife (Valerie Concepcion), he fell in love with Eloisa. Migo Adecer plays Emil and Clarisse’s middle child who is kind and obedient; Klea Pineda as Candy, the youngest daughter of Clarisse and Emil who falls for Brix (Jeric). The Manupil family includes returning GMA star Gelli de Belen as Kelly, a social climber who in turn is envious of Clarisse’s upscale lifestyle. Jake Vargas plays Kelly’s son who is spoiled, a natural player and tends to have a violent streak. Inah de Belen plays Carlo’s girlfriend and a nursing student raised in a poor family. Antonio Aquitania essays Kelly’s laidback husband. The new series is under the helm of award-winning GMA director and seasoned actress Laurice Guillen, who also directed the network’s highest-rating daytime drama, Ika-6 Na Utos. The program is another original creation of the GMA Drama group under the supervision of Senior Vice President for Entertainment Group Lilybeth G. Rasonable. Ika-5 Utos airs weekdays after Eat Bulaga. GMA fans across the globe can also catch their favorite shows via its international channels GMA Pinoy TV, GMA Life TV and GMA News TV International. For the program guide, visit www.gmapinoytv.com.

ALL ACCESS RICKY GALLARDO

rickygallardoTFI@gmail.com

E are excited for the resurgence in the film career of one of our favorite actors, Carlo Aquino. Often described as underrated, Aquino is one man who is very secure with who he is as an artist. He has truly evolved as an actor, and has been recognized numerous times for his galvanizing talent, from the time that he was a child actor up to the present. Who can forget his turn as the son of Vilma Santos in Bata, Bata Paano Ka Ginawa? We adored him in Minsan May Isang Puso. He was profound and almost perfect in Kahapon May Dalawang Bata. He was in his best elements in Mater Dolorosa. He was both brave and brilliant in Porno. His second movie this year, Jerrold Tarog’s Goyo, has just opened in local cinemas and wordof-mouth is starting to lure the younger set of audiences in, specifically the student population. A few months ago, Aquino starred in Meet Me in St. Gallen, a romance-themed movie that did quite well in the box office. His third film for the year, titled Exes Baggage, is starting to create a buzz, and Aquino is keeping his fingers crossed that the film will do well when it finally opens in cinemas later this month.

We can cite many reasons why Aquino should feel confident about this new film directed by Dan Villegas, but the primary reason is because he shares the film with his real life ex-girlfriend, Angelica Panganiban. Aquino and Panganiban have had two chances on love, but both did not last very long. “It was a mutual decision in both instances. It was definitely not a messy break up. We moved on our separate ways after, but we kept in touch,” he shared. He is happy that he gets this chance to work with Panganiban on the big screen. “The subject is very close to home, and we get to contribute our personal experiences to some of the scenes.” But he is quick to point out that the film is definitely not based on their love story. Aquino just turned 33 a week ago and he said that he is happy with the way things are going. “I’m glad that everything is smooth, priorities are in place, and life has become manageable,” he said, adding, “I think I’ve also reached a stage where I’m confident enough to politely turn down a project if I feel that it won’t benefit me as an actor, or I won’t be happy doing it. I would like to think that everything is a decision—the roles I accept to portray, the projects I take on, the people I work with.” He told us that he’s not rushing to falling in love again. “I like going with the flow. If something is meant to be, it will unravel by itself and we do not have to push anything just for it to happen. I also believe that life has its own way of surprising us—we just have to be ready to embrace all the opportunities that come along.” Carlo Aquino is a rare treasure in Philippine cinema. His star will continue to illuminate the big screen as the years go by. n

CARLO AQUINO

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D4 Monday, September 10, 2018

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GMA Artist Center stars Liezel Lopez, Ashley Ortega and Alyana Asistio pose during Danarra’s launch at Grand Hyatt BGC.

Why you need these aromatherapy oils in your life AND THEN SOME DINNA CHAN VASQUEZ @dinnachanvasquez luckydinna@gmail.com

INIMENTS, ointments and oils that smell of menthol, camphor and peppermint is an Asian essential for traveling and commuting. These liniments are particularly useful for motion sickness. We got it from our mommas and grandmamas, who couldn’t live without these scents of comfort. What Filipino child doesn’t associate the smell of menthol and camphor with his or her mother or grandmother? When I was a child, I couldn’t sleep without slathering my face with Vick’s Vaporub. I eventually outgrew this habit and the scent of these ointments. It was kind of embarrassing to use Vick’s during sleepovers, or when I was in the school bus, because some of my classmates would smirk when I opened my little jar. Thus, it’s surprising to see Vick’s Inhaler keychains hanging from backpacks of younger people. Even my 21-year-old would go for Vick’s or Katinko rather than drink a painkiller when she has a headache or body pain. The introduction of Danarra Aromatherapy Oil to the Philippine market is a welcome development. There are six variants, all housed in small glass bottles that can fit your purse or even pocket. No spills or leaks, too, because the Danarra oils are roll-ons! The name Danarra is derived from the word “Nadarra,” which, in the Scottish Gaelic vocabulary, means “natural.” “Celtic knots were chosen to become its symbol because Danarra and the Celtic knots connote interconnectedness between a person and nature,” said Danarra Aromatherapy Oils in a press release. Danarra seems to combine therapeutic benefits of old-fashioned Asian liniments and today’s trendy aromatherapy oils. The six scents are as follows: n Danarra Classic Menthol Destress gives instant relief in the traditional and familiar camphor scent. It can provide sinus care and help with motion sickness and itchiness due to insect bites.

SHEENA LABOR, Danarra Aromatherapy Oil brand manager

n Danarra Green Tea Clear Mind helps to relax, calm and soothe you, and make you feel fresh and energized. n Danarra Lavender Relaxing Sleep helps eliminate nervous tension and provide relaxing sleep. Perfect for insomniacs. n Danarra Young Cool and Fresh has the cool wind effect and freshness of air. It is perfect for moments when your senses are hit by unpleasant aromas. n Danarra Flowery Citrus Energy Giving uplifts your spirit with the hint of citrus and flowers. n Danarra Sport Mood Booster is perfect for your active lifestyle. Sheena Labor, Danarra Aromatherapy Oil brand manager, said combining the scents is a good idea. “Classic Menthol and Lavender would be good for travel. A busy mom could appreciate the combination of Classic Menthol and Green Tea. Another good combination is Sport and Green Tea.” You can apply the oils directly on your skin or just inhale the scent. I apply Lavender on my temples and near my nostrils before going to bed at night. When I’m on my way to an event, I combat motion sickness with Classic Menthol. I also use Green Tea as an overall fragrance sometimes. Danarra Aromatherapy Oil is priced at P89 at Mercury Drug Stores nationwide. n

THIS WATER IS THE ONLY THING YOUR SKIN NEEDS WHETHER you’re in a rush to work, or looking for a quick and easy way to cleanse your face after a long tiring day, Garnier Micellar Water is the perfect All-In-One Cleanser for your busy lifestyle. The No. 1 micellar water in the Philippines and worldwide is more than just a non-rinse makeup remover. Its unique formula with micellar technology works as a gentle yet effective cleanser that swipes away makeup, excess oil, and acne-causing dirt and impurities. It’s perfect for all Filipina skin types

and concerns. Garnier Micellar Water comes in two variants: a pink hydrating cleanser for dry and sensitive skin; and a blue mattifying cleanser that’s perfect for oily and acne-prone skin. The All-In-One Cleanser can be used anytime and anywhere. It just takes three easy and quick steps: pour on a cotton pad, then press onto your skin and swipe away the stress and impurities. Gently cleanse your face in the morning, use it to remove those fail winged-eyeliner attempts, or instantly refresh your skin midday after being exposed to pollution and dirt. Keeping your face refreshed and clean has never been this easy and effortless.

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Monday, September 10, 2018 E1

WHY WE PROCRASTINATE WHEN WE HAVE LONG DEADLINES

‘C

By Meng Zhu

AN you get that to me by the end of the day?” isn’t a request employees like to hear. But for many people, having shorter deadlines instead of longer ones might actually help them complete a task and see their work as being less difficult. Parkinson’s Law states that “work expands so as to fill the time available for its completion.” Our findings suggest that managers need to view deadlines more comprehensively. First, whereas Parkinson’s Law suggests that longer deadlines lead people to set easier goals and therefore decrease effort, we found that longer deadlines increase an assignment’s perceived difficulty. Second, while Parkinson’s Law makes a prediction only about time commitment, we found that longer incidental deadlines increase

monetary commitment. As a result, when an assignment also includes a budget, it might be better to set a shorter deadline than a longer one. These findings related to only single deadlines, and many of us balance multiple deadlines of varying lengths at a time. My colleagues Yang Yang and Chris Hsee and I designed a separate study to consider how individuals respond to a group of deadlines. We concluded that when faced with multiple deadlines for tasks that vary in importance, people regularly pursue less-important

YOUR CORPORATE PURPOSE WILL RING HOLLOW IF THE COMPANY’S ACTIONS DON’T BACK IT UP

By Graham Kenny

T’S impossible to miss the simultaneous occurrence of two current corporate trends. The first is the rise of the idea that to motivate employees, you need to supply them with a “corporate purpose.” The second is the astronomical rise in CEO and senior executive pay. To avoid a corporate-purpose exercise being viewed by employees as a cynical joke, there are certain preconditions that must be met. The major ones are addressing excessive CEO and senior executive pay, and treating employees and other stakeholders fairly. As a recent example take the announcement that the CEO of Australia’s Domino’s Pizza has become the country’s highest paid executive. This is the same organization where some franchisees got caught systematically underpaying vulnerable staffers, and charging for visa sponsorships, in order to meet their financial goals. While Domino’s details its mission, vision and values on its web site, it stops short of a purpose statement for good reason. It would seem incongruous to espouse “purpose” in a situation where the law is allegedly being broken and there are accusations of fraud. The pattern at Domino’s Pizza has

a precursor in 7-Eleven, and has again been discovered at several expensive Australian restaurants operated by high-profile and well-off chefs. They’ve been caught shortchanging their employees. It’s pretty hard for senior management in these businesses to espouse “higher purpose” to improve customers’ lives when the very people who put in to make this happen are not meeting their “basic purpose.” It’s also difficult to espouse corporate purpose if you’re cheating customers. In Australia, we have been watching a Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. Among the results that have gobsmacked the public is the revelation that Commonwealth Bank staff knowingly charged clients for financial advice for years—after the clientshad died. Cultures like this come from the top. It works just fine for the bank CEOs, making them among Australia’s highest-paid executives, but not so well for bank customers, as we have discovered. Articulating corporate purpose is a great idea. Before you launch your purpose campaign, put your house in order. Graham Kenny is managing director of Strategic Factors and president of Reinvent Australia.

assignments with shorter deadlines rather than more-important assignments with longer deadlines. In our article in the Journal of Consumer Research, we called this the “mere urgency effect” to

reflect how limited time windows affect the ways individuals choose what tasks to complete. These studies showed us that people’s tendency to procrastinate on what is important in order to fin-

ish less-important urgent assignments reflects a basic psychological preference. Many of us know this intuitively; we constantly check and respond to emails rather than work on the revenue report or our

team project. This may happen because important tasks are more difficult and further away from goal completion, urgent tasks involve more immediate and certain payoffs, or people want to finish the urgent tasks first and then work on important tasks later. However, our studies go one step further by showing that we may prioritize urgent yet trivial tasks even when these reasons are controlled for. We behave as if pursuing urgent tasks has its own appeal, independent of objective consequences. These patterns are important for managers and others setting deadlines to recognize, in large part because our findings reveal ways to game the system: Short deadlines on urgent tasks elicit attention. When deadlines are distant, managers can shift people’s attention away from the deadline and toward the final outcomes of everyday tasks. Reminding employees of the final payoffs of different tasks is an effective way to do this. Meng Zhu is an associate professor of marketing at the Johns Hopkins Carey Business School.

Four strategies for overcoming distraction By Chris Bailey

N the flurry of statistics that exist around personal productivity, there’s one I find especially alarming: The average person is distracted or interrupted every 40 seconds when working in front of their computer. Our brain’s attentional system is programmed to respond to anything that’s pleasurable, threatening or novel. We even have a novelty bias, wherein our brain is flooded with a pleasure chemical, dopamine, whenever we focus on something new. So how can you gain back control? After reading hundreds of studies, interviewing doz-

ens of experts and running the gambit of selfexperiments, I learned that countless strategies can help us mitigate distraction. Here are four of my favorites.

Create a distraction-free ritual.

For my distraction-free mode, I enable a distractions blocker on my computer (I use an app named Freedom), put on noise-canceling headphones, leave my phone and tablet in another room, grab a coffee and set an intention for what I want to accomplish. After focusing for 45 minutes, I treat myself to a 10-minute all-you-can-eat distraction buffet.

2Set three daily intentions.

First thing in the morning, ask yourself: What three things will I want to accomplish by day’s end? Part of what makes this rule so powerful is that three things fit comfortably within our attention at once, and prioritizing them ensures that these tasks stand out from a laundry list of other, less important things.

on hard stuff, and do more 3Work of it. Sometimes distractions come from internal and external factors, but other times they happen because we’re not being challenged enough by our work. Assess your busywork level.

If it’s high, that’s usually a sign that you have the capacity to take on more-challenging projects, and perhaps even more work in general.

4Setline.an artificial project dead-

It’s up to you to introduce a novel and threatening factor to long-term projects lacking urgency. Have an entire afternoon to write a monotonous report? Give yourself 50 minutes. Chris Bailey is the author of Hyperfocus: How to Be More Productive in a World of Distraction and The Productivity Project.

How discrimination against female doctors hurts patients By Christopher G. Myers & Kathleen M. Sutcliffe

HE systematic discrimination against female medical school applicants is not only sexist and scandalous in its own right — not to mention devastating for the women denied access to the profession they desired—but it constitutes a potential threat to patient safety and public health. Accumulating evidence shows that women deliver superior care. Other research has demonstrated that these differences in outcomes may be particularly pronounced for female patients. Evidence suggests that female physi-

cians bring unique perspectives to their practice that can improve care. Female physicians tend to engage in more preventive care and more effective doctor-patient communication. Research has also found that female physicians engage in more evidence-based care practices and score higher on medical school examinations relative to their male colleagues, factors that may account for their better outcomes. But there are other issues at play. A recent study of surgeons and other operating room team members revealed that the percentage of women on the team was directly associated with more cooperative behavior, with a substantial drop in cooperation when the number

of men exceeded 50 percent. In light of this evidence, it is reasonable to conclude that any practice, bias, or treatment that keeps women from entering and advancing in medicine is actually denying patients opportunities to receive higher-quality care. Biases that disadvantage women are observable even within the clinical components of medical training, resulting in different experiences for men and women during medical school and residency training. Despite these implicit and systematic barriers, female physicians continue to persist and achieve better outcomes than their male colleagues. A second implication is that male

physicians can learn from their female colleagues. Not only will women benefit from having more female physicians in leadership positions, but men will benefit from the education they receive from these women, as well. Allowing things to continue as they have for women in medicine sets our society back not only in gender equality but also in terms of the progress we should be making in medical care.

Christopher G. Myers is an assistant professor at Johns Hopkins University. Kathleen M. Sutcliffe is a Bloomberg-distinguished professor at Johns Hopkins University.

E2 Monday, September 10, 2018 • Editor: Efleda P. Campos

FAITH Colleges turns 18 with 4-day celebration

AITH Colleges (First Asia Institute of Technolog y and Humanities) marked its 18th year as an innovative academic institution with a four-day celebration for students, faculty, parents and stakeholders from September 6 to 9. With the theme “Transforming Ourselves,” the anniversary featured various fun competitions for arts and technology; seminars and workshops; talent shows; family picnics and an open-air concert featuring the YouTube sensation indie music band, Agsunta. The celebration kicked off with “Visions of Asean.” Traditionally, the basic education schools featured a particular country in an extensive history, arts and culture exhibit prepared by the students. For its 18th founding year, FAITH Colleges puts the spotlight on the Asean. Officials from the Asean Affairs of the Department of Foreign Affairs will lead ceremonies for “Visions of Asean,”as well as the Country Talk anchored on “Asean@50: Past and Present of Asean as A Region.” They will be joined by the student ambassadors from the different schools of FAITH Colleges. This will be followed by FAITH Astra Battle, a compendium of arts and technology competitions where 1,000 junior and highschool students coming from 30 public and private schools will compete in the areas of math, performing arts, science and technology, languages, history and social science. Staying true to its commitment to strengthen linkages between and among academe, the government and private sector, there will be a “Partners Appreciation Day” with academic partners, industry partners, local government unit heads, and representatives from the Department of Education, Commission on Higher Education, Department of Science and Technology, Armed Forces of the Philippines and other government agencies. Among the highlights of this event is the partnership of FAITH Colleges and Tokyo Medical University for the immersion program of TMU’s nursing students. FAITH Colleges was founded on September 8, 2000. Day 3 activities starts with a Foundation Day Mass, to be followed by a workshop and entrepreneurs’ forum spearheaded by Brainsparks Philippines (Brainsparks), an innovative start-up hub located within the FAITH campus. At sundown, students and guests will rock it at the Astra Music Jam featuring Agsunta at the FAITH Football Field. Dubbed, as “Bagong Boses ng OPM,” Agsunta is an independent Filipino band popular for its acoustic and soft melodic rock sound. On September 9 First Asian students, teachers, and parents will get-together for a talent show featuring a musical play, and a cultural and ethnic dance competition. FAITH Colleges is an institution of higher learning and research located in the City of Tanauan, Batangas, that provides a culture of research and academic excellence, as well as social and environmental awareness. The Philippines’s youngest HEI recognized by the CHED as Center of Development for its information-technology programs, FAITH Colleges is the first and only HEI in Region 4 to receive Pacucoa Level III Reaccreditation Status for BS Psychology and BS IT. FAITH Colleges has one of the biggest senior high schools in the entire country today offering all four tracks—academic, arts and design, sports and technology.

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FORTUNE LIFE’S VALUES ADVOCACY PROGRAM

Teachers awarded for forming right values in young

By Lizzie Lazo

HEY are the unsung heroes who persevere in fulfilling Dr. Jose Rizal’s words that “the youth are the hope of the fatherland.” In the classroom, they work hard to teach pupils that success in life depends on carrying out each day’s task by working hard, with discipline and perseverance. For teaching these values to their pupils in the best way possible, five public-school teachers are receiving the Gintong Parangal para sa Guro awards on September 12, in ceremonies at the Bulwagan ng Karunungan, Department of Education Head Office on Meralco Avenue, Pasig City. Five school administrators are also receiving the Gintong Parangal Pamumuno Awards for their exemplary implementation of the values program in their Department of Education Schools Divisions. The Gintong Parangal para sa Guro and Gintong Parangal para sa Pamumuno, comprising the Gintong Parangal para sa Edukasyon, are handed out by Fortune Life Insurance Co. as part of its corporate social responsibility efforts. The awards are given under the Values Advocacy Program of Fortune Life, undertaken with the DepEd and advocacy firm Mary Lindbert. It was launched in 2011. The values advocacy program showcases the life story of Ambassador Antonio L. Cabangon Chua, who rose from poverty to being a successful businessman by dint of hard work and discipline. Fortune Life, in partnership with the DepEd, drew up a textbook and workbook

with lessons based on the life of the late ambassador. The awards program for the teachers—Gintong Parangal para sa Guro—is now on its seventh year, launched on the second year of the Values Advocacy Program in 2012. The Gintong Parangal para sa Pamumuno awards for school officials like superintendents are only on their second year this year. The awards were launched last year. The teacher awardees for this year are Hadja Sarah Lucman Handang, DepEd Division, Zamboanga City; Dr. Rene Rose M. Labasan, San Juan Elementary School, Solano, Nueva Vizcaya; Dominic R. Ocampo, Benito R. Villar Memorial School in Alternative Learning System, Oriental Mindoro; Darwin T. Fadifa, Tubungan Central Elementary School, Tubungan, Iloilo and Cesar V. Valondo, Fortunato F. Halili National Agriculural School, Bulacan. The Gintong Parangal sa Pamumuno awardees are Dr. Denizon P. Domingo, DepEd Tuguegarao City; Dr. Evangeline Ladines, DepEd Pasay City; Dr. Joel B. Lopez, DepEd Laoag City; Dr. Orlando E. Manuel, DepEd Quirino Province and Dr. Cecilia E. Valderama, DepEd Bulacan. An e-mail interview with some of the awardees reveals how public-school teachers continue to be guided by their ideals. They are teachers not because they need jobs, but because they believe in the

CECILIA VALDERAMA

DOMINIC OCAMPO

DENIZON DOMINGO

RENE ROSE LABASAN

validity, integrity and relevance of their profession. Rene Rose Labasan, Master Teacher II of San Juan Elementary School in San Juan, Nueva Vizcaya, articulates very well how it feels to form young minds. “As an elementary grade teacher for almost 26 years, I find it joyous, delightful and very challenging mingling with these children, particularly Grade 1 pupils, the crucial grades to handle. For I believe in the biblical passage, ‘Train up your child the way you want to be, for when he grows old, he will not depart from it.’”

Denizon Domingo, Parangal awardee from Tuguegarao City, points to the Character of the Month observance that he initiated in his jurisdiction as his source of pure pride and joy. Under this program, the schools division confers recognition on teachers who taught in the best way possible the values being promoted under the values advocacy program. “The most fulfilling part is to know that the Character of the Month has become a buzzword not only among teachers and school heads, but also students. In fact, they have localized it, by reward-

5-day intl property course opens September 10

HE Certified International Property Specialist Institute, known worldwide as the CIPS brand, will be offered for the fifth time in Manila from September 10 to 14 at the Metropolitan Club, Rockwell Center, Makati City. Themed “Capture the Global Market,” the five-day course is licensed by the Chicago-based National Association of Realtors (NAR)—the largest real- estate association with over 1.1 million members worldwide—and hosted by the Chamber of Real Estate and Builders’ Associations Inc. (Creba), NAR’s exclusive cooperating association in the Philippines. CIPS course instructor is David E. Wyant from Orlando, Florida

whose professional career in real estate and education spans 40 years. T he intensive cur r icu lum highlights international real- estate trends and transactions, region-specific laws including currency and exchange rate issues, cross-cultural relationships, and an actual feel of intercontinental market conditions and investment performances in the Americas, Europe, Asia and Oceania. Creba National President Noel Toti M. Cariño encourages Filipino real-estate professionals to be part of the elite CIPS designees group which exists in 45 countries around the world so they can benefit from the growing cross-border influences in realestate markets.

“The ability to assist global clients with strong referral introductions depends heavily upon your professional networking efforts—both in personal connections you’ve already established and your ability to quickly identify other top-notch resources,” he said. Creba Nationa l Chair man Charlie A. V. Gorayeb affirmed that “applying a ‘no borders’ mind-set expands opportunities w ith buyers and sellers around the world exponentially, knocking down every conceivable barrier.” “Global real-estate opportunities are everywhere. Investors in your current market may look to invest in property overseas. No matter which audience you ca-

ter to, the CIPS designation will provide the knowledge, research, network and tools to globalize and expand your business,” he said. Gorayeb served as NAR’s international director in 2016. The right to use the Realtor brand name and logo in the Philippines is exclusive to PRClicensed real-estate professionals who apply and remain as active card-bearing International Realtor Members or IRMs admitted by NAR through Creba. On September 9 to 14 this year, the Chamber is heading a delegation to the International Real Estate Conference in Hanoi, Vietnam. Interested parties may contact tel. nos. 373-2270 or send an email to crebanar@yahoo.com.

Students learn to plant veggies at Bulacan elementary school

ULIL A N, Bu l acan—Famous for its Carabao Festival, the municipality of Pulilan in Bulacan is primarily an agricultural-based economy. But it is moving toward commercialization and industrialization, becoming one of the province’s centers of commerce and trade. Similar to other areas in the country where the shift to urbanization is rapid, many young people are no longer keen on farming nor gardening. At the Balatong Elementary School in Pulilan, beneficiary of a two-story, four-classroom school building from SM Foundation, visitors and guests during the turnover ceremony were elated to see plots of vegetables and plants in recycled containers cultivated by students in the school grounds.

The planted vegetables are projects of the pupils under the guidance of Belen Cruz, an Edukasyong Pantahanan at Pangkabuhayan teacher at the school. School gardening is in the EPP curriculum and per an order of the Department of Education (DepEd), “school vegetable gardening shall be strengthened to counteract malnutrition and to generate resource/income. Thus, it can be part of the income generating project of the school.” Cruz’s parents are both farmers. To further hone her skills in gardening, she participated in SM Foundation’s Kabalikat sa Kabuhayan Farmers’ Training Program where she acquired the latest technology and know-how of vegetable farming. She then imparted this knowledge to her students. Support to the project

has been very inspiring with industrial companies providing the containers for the plants. The students’ efforts have been very rewarding. Proceeds from their vegetable harvest are now being used to buy more seeds. They have also undertaken a feeding program. School gardens teach students to become responsible caretakers. They learn the responsibilities of tending their plants. They also learn teamwork and new skills in food growing. Gardening also improves the students’ health as they spend time active in the outdoors. Aside from these, the schoolyard is beautified. Meanwhile, the school building turned over by SM Prime through the SM Foundation recently is the first school building donated by SM to the municipal-

ity, but is the 89th donated by SM Foundation. This translates to an aggregate of 284 classrooms nationwide since SMFI started its school-building program in 2002. The new school building is furnished with 200 armchairs that include 20 chairs for left-handed students, earning for SM Foundation the distinction of being the only company that provides such amenities for southpaw students. The armchairs were built by persons with disabilities (PWDs) of the Foundation of These-abled, an institution SM Foundation supports. Each classroom is a lso equipped with a set of teacher’s table and chair, four wall fans, two blackboards, a wall clock, and a toilet including a ramp and toilet for PWDs.

ing also their own students and teachers in their own programs,” he said. Teacher awardee Dominic R. Ocampo, who worked among the Mangyans in Oriental Mindoro, finds as his best reward “the showing of tolerance and understanding others” among his pupils. “Since my learners are Mangyans, I can integrate the values lessons in their struggle in life in terms of mingling with non-Mangyans.” He had to overcome their distrust in “being a subject of prejudices and discrimination in government services and other cultural misunderstandings,” he said. He feels most fulfilled “when the IP [indigenous peoples] learners can significantly internalize the values being taught. It’s very much like their perseverance in surviving the harsh climate and hard work in maintaining their farmlands.” Gintong Parangal Pamunuan awardee Cecilia E. Valderama, head of the DepEd Bulacan Schools Division, has under her division 403,430 students from kindergarten to senior high school in public schools and 97,627 students from kindergarten to senior high school in private schools. Having these thousands of learners under her jurisdiction, “I feel a very strong conviction that as an implementer of the values advocacy program, I am accountable to God and society to make the values recovery program through education successful. This mission makes the challenge more inspiring and motivating,” she said. Having these teachers and school executives as the molders of the next generation of Filipinos, Filipinos can rest assured that there will be enough values-oriented citizens who will make the future bright and hopeful.

D.S.W.D. ACCREDITS 50 MUNTINLUPA DAY-CARE TEACHERS By Roderick L. Abad @rodrik_28 Contributor

HE local government unit (LGU) of Muntinlupa welcomes the Level 1 accreditation to the city’s 50 day-care center (DCC) workers by the Department of Social Welfare and Development (DSWD). Muntinlupa Early Childhood Education Division (ECED) Chief Jenny Deuda recently presented them to Muntinlupa Mayor Jaime Fresnedi. She said all of the city’s child development hubs are currently equipped with Level 1 accredited ECED staff. The teachers underwent assessment and evaluation conducted by internal and external evaluators in 2017 and the first quarter of 2018. These included areas of advancement of children’s growth and development; partnership with families, communities and local government; human-resource development; program management; and physical environment and safety. Deuda attributed this achievement to the local initiative on children’s development as DCC teachers guarantee holistic growth of students’ gross motor skills, fine motor, self-help skills, expressive language, receptive language, cognitive development, and social and emotional development. She also cited the city government’s assistance to teachers and workers as Muntinlupa boasts of having the most number of ECED staff in plantilla (regular) positions and with higher pay among other LGUs in Metro Manila. The ECED chief noted the accreditation serves as a proof of quality education offered to the youth sector in local child development centers. Muntinlupa has set a standard among LGUs nationwide as it gains a following from local cities and municipalities, including international organizations, which show interest in duplicating its best practice in early childhood development. LGUs and foreign groups which recently visited Muntinlupa included Gubat-Prieto Diaz and Barcelona-Sorsogon, Milaor-Camarines Sur, Oas-Albay, Libona-Bukidnon, Sorsogon City and delegates from Colombia. The Early Childhood Care and Development Council hailed Muntinlupa City as an “Early Childhood Care Development” champion.

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Editor: Efleda P. Campos • Monday, September 10, 2018 E3

PR THEN AND NOW:

DOING GOOD AND TELLING IT WELL Part One

T PR Matters By Luis J. Morales

HE Father of Philippine PR and my mentor Jose A. Carpio defined Public Relations as “doing good and telling it well.” It still rings true even now, almost 50 years since I started in the business. You see, much of the development of Philippine PR was anchored on the evolution of technology, of the media used to communicate the messages, but the principle is and will always be the same. If you are doing something good and you are able to communicate it well to those you want to reach, you’ve made a mark and secured an audience.

BACK in the 1970s, PR was largely about writing stories and giving them to the press to be printed in the papers or broadcasted on TV or the radio. It used to be just news stories that companies saw fit to share with their audience: product launches, corporate movements, upcoming events, etc. The main goal was simply to inform. Companies would push their messages for the public to consume. You can say that PR as a corporate tool focused mainly on media relations and publicity. But Mr. Carpio saw beyond that. He founded the Public Relations Society of the Philippines and used it as a platform to professionalize the field. So from advertising, I got into the business of PR. We networked and slowly built connections with the who’s who in business and government because PRSP under Mr. Carpio used PR to build, not just awareness, but understanding and appreciation of businesses and institutions, as well as individuals. PR eventually developed into what is called corporate communication. More than just publicity,

SPIKES ASIA 2018: CREATIVE PAIRS FROM BBDO GUERRERO AND DENTSU JAYME SYFU TO COMPETE IN THE YOUNG SPIKES DESIGN COMPETITION

TWO creative agency pairs from the Philippines have been shortlisted for this year’s Young Spikes Design Competition during the Spikes Asia Festival of Creativity in Singapore from September 26 to 28. The Young Spikes Design competition, which is launched in partnership with HP Inc., is a new addition to the roster of contests that Spikes Asia holds for under-30 creatives in the region. The new contest also features a different set of proceedings from the other Young Spikes competitions. The participating creative teams of two were given a competition brief on July 11 which challenged the contestants to leverage HP’s Graphics Solutions technologies to engage with their target audiences. The panel of judges for this competition will release a shortlist from the first round of submissions, which will then be invited to a live competition during the Spikes Asia event in Singapore. The winner of this round will receive the Young Spikes Design Award at the Awards Ceremony on September 28. After the first round of competition, the Young Spikes Design jury has released its shortlist which includes two teams from the Philippines. Former Young Lions and New Stars representatives Nikki Sunga

and Andi Olbes of BBDO Guerrero will now try and conquer the Young Spikes competition, while the pair of Irish Wendy Bautista and Audrey Jewel Aparis of Dentsu Jayme Syfu will try to make a breakthrough in the contest. The shortlist further turned out four teams from Singapore, three pairs from Japan and one duo from Malaysia. A total of 10 teams will be going to Spikes Asia to compete live. The shortlisted teams will face a tough challenge from the Young Spikes Design jury composed of HP executives and award-winning top creatives from around the region. The jury includes Conrad Mendoza Jr., region lead, brand innovation of HP Inc. Asia Pacific and Japan; Geraldine Kan, head, corporate communications, Asia Pacific Japan of HP Inc.; Puneet Chad, director marketing, Graphics Solutions Business, Asia Pacific Japan of HP Inc.; Kazoo Sato, chief creative officer of TBWA/Hakuhodo in Japan; Michael Knox, chief creative officer of Grey Group Hong Kong; Noah Regan, head of art of DDB Sydney; Valeri Mason, chief creative officer, Southeast Asia of Havas Group; and Rey Tiempo, chief creative officer of Y&R Philippines. For more details about the Young Spikes Design competition, visit the Spikes Asia web site.

CAMPAIGN SPOTLIGHT: NIKE JUST REIGNITED THE KAEPERNICK CONTROVERSY IN NEW CAMPAIGN, TRUMP SLAMS SPORTS GIANT

HOW Colin Kaepernick is viewed in 20 years will be fascinating to see, but it is increasingly likely that this is a man who will be remembered

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PR as communication for audiovisual media

the practice grew to include corporate social responsibility (CSR), crisis management, stakeholder relations, and other projects that are more exclusive and expansive in terms of reach and engagement. It became more about building mutually beneficial relationships with customers.

Dawn of the Internet

PR evolved further when the Internet came. The Internet revolutionized communication by making it more dynamic, synergetic and liberal. But the most important change that the Internet brought is it enabled audiences, who were once mere recipients, to talk back to the companies and corporations. This as one of the most significant civil rights campaigners of the early-21st century. Kaepernick flew into the spotlight when, to protest racial injustice, he decided to kneel rather than stand for the national anthem before a 2016 National Football League preseason game. He’s not currently signed with an NFL team and has since charged that the organization conspired to prevent him from getting signed to a team when he became a free agent. The NFL denies his allegation. A hearing is expected on the matter before the end of the year. On Monday Nike announced that Kaepernick is one of the athletes to commemorate the 30th anniversary of the brand’s iconic slogan. (Serena Williams and Odell Beckham Jr. are among the other faces of the campaign.) The ad is a black-and-white close-up of Kaepernick’s face with the words, “Believe in something. Even if it means sacrificing everything”—a reference to Kaepernick’s lawsuit against the NFL for allegedly colluding to keep the former San Francisco 49ers quarterback out of the league over his protests against police brutality. At the start of the ad, Kaepernick says: “If people say your dreams are crazy, if they laugh at what you think you can do, good. Stay that way, because what nonbelievers fail to understand is that calling a dream crazy is not an insult, it’s a compliment.” The commercial’s universal theme is about athletes pushing for bigger dreams. It features young athletes who compete amid various challenges, touching on issues of gender, disabilities and weight loss, among others.

is actually an ideal model of communication for us. Knowing what customers think gives plenty of insight on how to serve them better. It helps us create more involved and developed programs that have better reach and higher level of engagement. Stories now include real people’s experiences with the product or brand, with lots of action reported in real time, or thought leadership initiatives, among others. They’re also almost always accompanied by preproduced shareable content like videos, infographics and listicles. Actually, some of the current PR efforts grow by themselves. They reach places we never knew existed and give birth to new ideas we could use to further our messages. Moreover, these things become part and parcel of weaving the fabric of a brand’s story. Along with this, the goals of PR changed, as well. From merely to inform, PR is now used to educate, influence and engage the target audience so much so that the relation-

ship with them leads to brand love and loyalty. There’s a caveat to it, however. The opening of the audience channel via the Internet, or social media in particular, is a double-edged sword. As much as it’s easy to share positive information, people can also spread lies and fake news about anyone or anything just as quickly. User-generated content can spread like wildfire and there’s often little that can be done to stop it. To be continued PR Matters is a roundtable column by members of the local chapter of the United Kingdom-based International Public Relations Association (Ipra), the world’s premier organization for PR professionals around the world. Luis J. Morales is the chairman of CID Communication Inc. We are devoting a special column each month to answer our readers’ questions about public relations. Please send your questions or comments to askipraphil@gmail.com.

Perspective BusinessMirror

www.businessmirror.com.ph

Monday, September 10, 2018 E4

Conspiracy theories made Alex Jones very rich. They may bring him down

ALEX JONES, the right-wing conspiracy theorist and talk-show host, talks to reporters on Capitol Hill, in Washington, September 5, 2018. Though Jones likes to portray Infowars as a media outlet, in business terms it is more accurate to describe the digital channel as an online store that moves a grab-bag of health-enhancement and survivalist products which Jones hawks constantly. TOM BRENNER/THE NEW YORK TIMES

By Elizabeth Williamson & Emily Steel

New York Times News Service

USTIN, Texas—More than ever before in his two-decade career built on baseless conspiracy theories, angry nativist rants and end-ofdays fearmongering, Alex Jones is being called to account. In a Texas courthouse, his lawyers are battling defamation claims resulting from one of his most infamous acts: spreading false reports that the Sandy Hook massacre of 20 first-graders and six adults was an elaborate hoax. In Silicon Valley, Facebook, YouTube and, as of Thursday, Twitter, under pressure to better curb hate speech and incendiary misinformation, have largely cut him off. His latest stunt—turning up on Capitol Hill this week to call attention to his claim that he is being unfairly silenced on ideological grounds—led to an embarrassing rebuff by a conservative Republican senator. The big question for him now is whether his bluster—and the implicit support he has received from President Donald Trump, who has channeled bogus or misleading claims promoted by Jones and echoed his complaints of anti-conservatism by technology companies—will be sufficient to see him past his current peril. He is facing a legal, public opinion and social-media reckoning that poses the most serious threat yet not just to his ability to inject the outlandish into the mainstream, but also to the lucrative business

he has built. Jones likes to portray his digital channel, Infowars, as a media outlet, and he is quick to wrap himself in the First Amendment. But in business terms, it is more accurate to describe Infowars as an online store that uses Jones’s commentary to move merchandise. Its revenue comes primarily from the sale of a grab-bag of health-enhancement and survivalist products that Jones hawks constantly. A close look at his career shows that he has been as much a canny if unconventional entrepreneur as an ideological agitator. He has adapted to—and profited from—changes in both the political climate and the media business even as he has tested, and regularly crossed, the boundaries of acceptable public discourse. For more than two decades, Jones, 44, has built a substantial following appealing to an angry, largely white, majority male audience that can choose simply to be entertained or to internalize his rendering of their worst fears: that the government and other big institutions are out to get them, that some form of apocalypse is frighteningly close and that they must become more virile, and better-

armed, to survive. “I’m not a business guy, I’m a revolutionary,” he said in an interview in August. If it is a revolution, it is one that he has skillfully monetized. His fundamental insight was that his audience is also a nearly captive market for the variety of goods he peddles via Infowars’ website and his syndicated radio show—products intended to assuage the same fears he stokes. Infowars and its affiliated companies are private and do not have to report financial results publicly. But by 2014, according to testimony Jones gave in a court case, his operations were bringing in more than $20 million a year in revenue. Records viewed by The New York Times show that most of his revenue that year came from the sale of products like supplements such as the Super Male Vitality, which purports to boost testosterone, or Brain Force Plus, which promises to “supercharge” cognitive functions. Court records in a divorce case show that Jones’s businesses netted more than $5 million in 2014. Court proceedings show that he and his then-wife, Kelly Jones, embarked on plans to build a swimming pool complex around that time featuring a waterfall and dining cabana with a stone fireplace. Alex Jones bought four Rolex watches in one day in 2014, and spent $40,000 on a saltwater aquarium; the couple’s assets at the time included a $70,000 grand piano, $50,000 in firearms and $752,000 in silver, gold and precious metals, in a safe-deposit box, court documents say. People who have worked with Alex Jones or studied his business said his revenues had probably continued to grow in recent years.

But his problems are mounting. At least five defamation suits against Jones, including three filed by Sandy Hook families, are moving forward. Last month, a Texas judge ordered Jones and officers in his web of limited-liability companies to provide depositions to lawyers for the parent of a Sandy Hook victim in coming weeks, testimony that could shed new light on Jones’s operation. He is also facing complaints of workplace discrimination from two ex-employees, a fraud and product liability case and a nasty court battle with Kelly Jones, now his ex-wife. She says the couple have spent a combined $4 million on their four-year battle over custody of their three children and disputes over the business. At the same time, the crackdown on Alex Jones in August by the social-media giants—he has been largely banned by Facebook, YouTube, Apple, Spotify and even Pinterest—poses a severe test by limiting his access to his audience. The early evidence is that the bans have substantially reduced his reach, and that was before Twitter imposed a permanent ban Thursday on his account and the account for Infowars, depriving him of his last major social-media channel. As a result, he is being forced to rely even more on his Infowars site, his mobile app and his radio show, which is heard on more than 100 stations nationwide. True to form, Jones is using the challenge to move more product. For several days in August, after the ban by the social-media companies, his online Infowars Store offered deep discounts under an all-caps banner that read, “FIGHT THE BULLIES, SAVE THE INTERNET, SAVE INFOWARS.”

Jones operates from behind bulletproof glass at an Austin industrial park, in a dimly lit hive of studios and cluttered, open-plan desks. He invited a New York Times reporter there for an interview on two conditions: that the location of his headquarters not be specified and that he would record audio of the interview. There are no identifying signs outside. Inside, there are split-screen security camera monitors throughout, which Jones checks as he passes by. There are guns in the building for protection, he said. He added that armed snipers are positioned on the roof, then in a phone call the next day said that he had made that up. He wouldn’t say how many employees he has, but in 2017 court testimony he said he employed 75 people, plus 10 contractors. He insisted that his troubles are proof that a globalist, leftist cabal aims to silence him. He claimed advance knowledge that technology companies, Chinese communists, Democrats and the mainstream media would “try to use me as a 2018, 2020 campaign issue—to hurt Trump, to misrepresent what I’ve said, to project it on Trump, and to go after the First Amendment and legitimize the censorship of all the Republican congresspeople.” It was classic Alex Jones: a nonstop mix of flimsy fact, grievance, paranoia, ideology, combativeness and solipsism. “Preppers” are an important market segment for Infowars, and ads on its website bring better response than on other conservative media shows, said Chad Cooper, who owns Infidel Body Armor, based in San Tan Valley, Arizona. He spent about $5,000 a month on Infowars advertising for his civil-

ian body armor line until recently, when he suspended his advertising because Infowars started selling ads to too many of his competitors. While he does not take in Jones’s show—“he’s a nutter,” he says—“I’ve spent quite a bit of time on the phone with these Alex Jones people who order from me. “They’re nonbelievers in what the media tells them. They think there’s more to the story,” he said. “They think there’s aliens, and the government knows about that and they’re not telling them. They’re all religious, and they’re very concerned about the direction the government is going. “He’s really good at scaring people,” Cooper said of Jones. “He gives them that sense of urgency— they need to hurry up and do something. Now.” Jones’s image and credibility as a provocateur are closely linked to his credibility as a marketer of supplements and other products. Consequently, sales of the fluoride-free toothpaste he promotes might decline if he recants his bogus claim that fluoridated water causes cancer and stunts the brains of children. Demand for Infowarsbranded gun components that can be purchased without a firearms permit might fall if he backs off his predictions of a looming civil war. Jones had cited a desire to express contrition to the Sandy Hook parents as a reason for agreeing to be interviewed. But many times during the interview, his efforts at apology morphed into new theories. “The idea they’re pushing is that you can’t ever question anything,” he said, “they” referring to anyone who criticizes his twisting of the truth. “I don’t think you can establish that anything is 100 percent fact.”