Nick Joaquin Literary awards WINNERS
This year’s winner of the Nick Joaquin Literary Awards (NJLA) were all young writers with long writing careers ahead of them, a hint, perhaps, that the late National Artist for Literature and Philippines Graphic Editor in Chief Nick Joaquin’s advocacy of opening the magazine’s pages to young writers and new voices is one of the best things a publication can do for the country’s winners. Photo shows (from left) PGPI VP for Finance Adebelo Gasmin, Glenn Ian S. Tiempo of Pru Life UK, 2017 NJLA Poet of the year Anne Carly Abad, Fiction winners Scott Lee Chua, Christian Ray Buendia and Wayne Benitez Castillo, with PGPI and BusinessMirror President Benjamin V. Ramos and PGPI and BusinessMirror Publisher T. Anthony Cabangon.
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Wednesday, September 20, 2017 Vol. 12 No. 342
Govt wants high tariff to replace rice QR T By Jasper Emmanuel Y. Arcalas
@jearcalas
he Philippines could impose a maximum tariff rate of 400 percent on rice imports to give the government enough elbow room to balance the interest of farmers and consumers.
The bound tariff rate of 400 percent was adopted by a technical working group (TWG) of the House Committee on Agriculture
‘SI Swimsuit’ 2018 issue to showcase PHL sites By Ma. Stella F. Arnaldo
@akosistellaBM Special to the BusinessMirror
De Castro: “Filipino photographers will be used for the photo shoot. But we’re still finalizing the list.”
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N ARRAY of models with diverse profiles and backgrounds are headed to the Philippines this November, as the country’s exotic tropical locations are used as settings in the wildly popular Sports Illustrated (SI) Swimsuit Issue for 2018. In a news conference on Tuesday at the Department of Tourism (DOT) building in Makati CITY, Undersecretary for Public Affairs, Communications and Special Projects Katherine Chloe de Castro said the “search” and photo shoot will take around three weeks and will involve 18 candidates. The top choice destinations for the photo shoots are Siargao, Surigao del Norte and Subic Beach in Sorsogon. Siargao is considered the country’s surfing capital, while Subic Beach beguiles tourists because of its pink sand.
The search the DOT official refers to is the first-ever open casting call that SI Swimsuit management had undertaken this year. The winner will be featured in the pages of the popular magazine next year, which is usually released onward from February. The annual Swimsuit issue is said to be SI’s “bread and butter”, with published reports estimating its value at some $1 billion. It has featured its models in various exotic locations, tropical or otherwise, but this will be the first time the magazine will be shooting in the Continued on A12
PESO exchange rates n US 51.1770
and Food and included in the draft of the substitute bill that would amend Republic Act (RA) 8178. RA 8178 allowed the government
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The United Nations Global Counter-Terrorism Strategy Teddy Locsin Jr.
400 percent
free fire
The bound tariff rate on rice imports being eyed by the government
Philippine statement delivered by Ambassador Teddy Locsin Jr. at the United Nations General Assembly Hall, New York, on July 28, 2017).
to regulate the entry of imported rice via the quantitative-restriction (QR) scheme. During the TWG’s deliberations on Tuesday at the House of Representatives, Rep. Gloria Macapagal-Arroyo of Pampanga said
r. President, there are many ways to fight terrorism but only one way to destroy it and that is to do so. The roots of terrorism cannot be traced seriously to any cause—social and economic inequality, religious and ethnic difference—but only to the fallen nature of man which can corrupt any idea and which has never sunk so low since the Holocaust.
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BMReports
Quezon City residents reckon with overdue land valuation By Alladin S. Diega
another lot measuring 50 sq m. Lucido is a resident in the area for 30 years now. Based on the latest zonal value schedules for South Quezon City for 2016, Lucido’s lot is situated in an area wherein the lowest zonal value is P24,500 ($480.37) per sq m . Unlike the zonal value in Novaliches, which still uses the 2014 Bureau of Internal Revenue (BIR) schedule, Baranggay Tatalon is already adjusted and uses the 2016 rates.
Correspondent
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Conclusion
N iPhone X can pay for the property tax of nearly 19 houses in Quezon City. That is how it will come to if one believes Apolonia B. Lucido, a retiree. She told the BusinessMirror she has recently paid P2,724.43 ($53.42) for her three-story house in Barangay Tatalon, Quezon City, with a total floor area of 90 square meters (sq m). An iPhone X goes for a minimum of $999, according to the Apple Corp. web site. According to Lucido, she was able to get a P681.10 “early bird” discount for paying the property tax for 2017 months before the deadline of payment. Payment receipts from the last three years reveal a similar amount she paid for her property. Lucido
Opposition
This September 15 photo shows a skyscraper being erected along Scout Borromeo in Quezon City. According to Quezon City Administrator Aldrin Cuña, the local government is losing money because its land valuation is still at the level in the 1990s, while real-estate brokers are selling lands at 2016 to 2017 prices. Nonie Reyes
told the BusinessMirror she can comfortably say she’s been paying the same amount at least for the
last five years. She cannot, however, locate a receipt for the payment of tax for
ACCORDING to the city administrator of Quezon City, the fair market readjustment was formulated “in a way that it will cushion the effect of the readjustment”. This runs contrary to the claims of the Alliance of Quezon City Homeowners Association Inc.
n japan 0.4588 n UK 69.0685 n HK 6.5474 n CHINA 7.7823 n singapore 37.9764 n australia 40.7369 n EU 61.1872 n SAUDI arabia 13.6472
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Source: BSP (19 September 2017 )
A2 Wednesday, September 20, 2017
BMReports BusinessMirror
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Quezon City residents reckon with overdue land valuation Continued from A1
(AQCHAI) that has said the adjustment led to the increase of property taxes by 500 percent. Quezon City Administrator Aldrin Cuña said the adjustment has only led to a rate increase of 300 percent. “In fact, our position is that the complainant does not have legal standing to file in the Court because we found out that the organization that claims to be representing the homeowners in Quezon City does not have a valid SEC registration, its earlier registration was revoked,” Cuña added. The city official said his office already informed the High Court of the current legal standing of the organization through a comment they filed in June. The AQCHAI, however, is not the only one that protests an o rd i n a n c e a p p r o v e d b y t he Quezon City Council that revised
High tariff. . .
fair market values in the city. Under Ordinance 141, land values in Quezon City can go up by as high as 300 percent, depending in the area of location. Aside from AQCHAI, the ordinance was opposed also reportedly by the Association of Filipino Franchisers Inc., Philippines Retailers Association, the Quezon City Association of FilipinoChinese Businessmen Inc., the Loyola Grand Villas Homeowners Association Inc. and the La Vista Association Inc.
TRO
IN April the Supreme Court issued a temporary restraining order (TRO) for the implementation of the hike in property taxes. A land agent told the BusinessMirror that the TRO was triggered by inconsistencies in how the law is applied. Declining to be named, she said that some areas in Quezon City
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a high bound rate would afford the government flexibilities in imposing tariffs on rice. “We should just specify in the law that it will be a bound rate and just leave it to the President to determine the applied rate,” Arroyo said. The Pampanga lawmaker earlier said the Philippines must interpret its agreements and commitments to its favor and had made a pitch for a 700-percent bound tariff rate. Some members of the TWG, however, expressed apprehension that imposing a high tariff rate could encourage smuggling, which could harm rice farmers. Officials from the National Economic and Development Authority, (Neda) Department of Agriculture (DA), Department of Foreign Affairs (DFA), Tariff Commission and representatives from the private sector attended the meeting of the TWG. The TWG, chaired by Partylist Rep. Jose T. Panganiban Jr. of ANAC-IP, said the maximum tariff rate should only be slapped on rice imports outside of Manila’s minimum access volume (MAV) of 350,000 metric tons (MT). Agriculture Undersecretar y for Policy and Planning Segfredo R. Serrano said the government should slap a tariff of 35 percent on rice imports from Asean, re-
gardless of volume. Serrano added that a 40-percent tariff rate should serve as the country’s most favored nation (MFN) rate for rice imports within the MAV. “The MAV will revert back to its 2012 level at 350,000 MT, because under the terms of the waiver of the World Trade Organization [WTO], we can revert back to the original volume as indiciated in the Philippines’s commitment to the WTO,” Serrano said. “So, we proposed a 35-percent tariff for rice imports from Asean member-states pursuant to the Asean Trade in Goods Agreement and 40-percent MFN rate for imports within the 350,000 MT MAV for WTO member-countries,” he added. Serrano disclosed the DA’s proposed bound rate for rice imports outside of the MAV was 150 percent, which was calculated based on the formula stipulated under the special-treatment provision of the WTO Agreement on Agriculture (AoA). The 150-percent bound rate shall only apply to rice imports from other countries that are not members of Asean, according to Serrano. “We used the formula to calculate for this 150 percent, so it is something that we can support with data. You can go higher than
retained their old valuation and only selected areas were hiked. Asked how the zonal values and fair market price come into play in an actual land purchase, she cited an example of transaction she concluded two years ago in Barangay Bagbag. The 295-square-meter lot the agent was able to sell amounted to P1.9 million at P6,440 per square meter, the agent said. The seller’s requirement was for the buyer to shoulder the 3-percent broker’s fee, which is P57,000, including the capital-gains tax calculated at P28,500. For the buyer’s sake, the seller agreed to “undervalue” the price of the land to P500,000, with the price of the property appearing as only half million in the deed of sale. By doing so, she said, not only was the capital-gains tax reduced, the annual property tax was also reduced. The agent said the practice is an
“open secret” in the real-estate industry. She added that should the buyer decide to resell the property after a few years, he or she could readjust the price to its original price plus an additional amount depending on the fair market value at that time. The new buyer would understand because the real price would actually reflect the zonal value, the agent told the BusinessMirror.
that but we are supporting 150 percent with evidence,” he said. Annex 5 of the AoA states that the tariff equivalent of converting any nontariff measures shall be based on the difference between the domestic price and international price (cost, insurance and freight unit value, or CIF) of the commodity for 1986 to 1988. Paragraph 10 of the Annex 5 states that the tariff equivalent coming from the formula “shall be bound in the schedule of the member concerned”. Bound tariffs are maximum tariff rates that a WTO member-country could impose on a certain commodity. The authority to set bound tariffs is vested in Congress. But under the Customs Modernization and Tariff Act, the President, upon the recommendation of the Neda, has the power to modify the tariffs applied on Philippine imports. The Philippines is now under pressure to convert its QR on rice into ordinary customs duties after its waiver on the special treatment on rice expired on June 30. The WTO General Council approved the waiver, which allowed Manila to keep its rice QR until June 30, on the condition that the Philippines will subject its rice imports to ordinary custom duties by July 1. “At the expiration of this waiver, and no later than June 30, the importation of rice shall be subject to ordinary customs duties in ac-
cordance with paragraph 10 of Annex 5, Section B, of the Agreement on Agriculture,” the WTO General Council decision read. In March the Philippines informed WTO members that it is facing delays in converting the QR due to the nonamendment of RA 8178, which imposed the import caps on rice indefinitely. As a sign of “goodwill” to its trading partners, Duterte signed Executive Order 23 in July, extending the concessions made by the Philippines in securing the waiver in 2014. The temporary modification of most-favored nation-tariff rates is effective until June 30, 2020, or until such time a law amending certain provisions relating to rice in RA 8178 is enacted, whichever comes first. Panganiban said the TWG is eyeing to conduct its last hearing on October 3 to approve the draft of the substitute bill, which will later be submitted to the House Committee on Food and Agriculture for deliberations. “I only want one hearing in the committee so that the bill will be ready for plenary debates after the [Halloween break which will start on October 14 and end on November 12],” Panganiban told the BusinessMirror after the TWG meeting. He said the House of Representatives is planning to approve the bill on third and final reading before the year ends.
Revenue
ANOTHER resident, Nena Fernandez, told the BusinessMirror she is paying P8,000 annual tax for a residential lot of a little less than 500 sq m, situated in Barangay Apolonio Samson, just 2 kilometers away from the SM North commercial complex. According to her, as far as she knows, her tax rate has remained the same for the last few years. Fernandez’s property is in North Quezon City, with zonal value
With Jovee Marie N. dela Cruz
for resident area ranging from P12,000 to P18,000 per sq m. It has a 2015-rates schedule. Sought for comment, Cuña said that is exactly what the city government wanted to minimize, if not totally avoided. “The local government is losing money because its valuation is still in the 1990s era while the realestate brokers are selling lands at 2016 to 2017 prices,” he said. Cuña emphasized the residents should see that the funds to be collected from the adjusted property taxes will fund Quezon City’s priority projects. “In fact, most of the fund of the city goes to construction. We are also investing heavily on the ‘solarization’ of public-school buildings [as] we’re serious about the use of alternative energy sources,” he said. “The mayor is favoring the construction of a hospital in Baranggay Batasan Hills, with 100bed capacity, to accommodate the
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ramp controller at the Naia Terminal 1. He said ramp controllers were deployed because the scattered passenger terminals are no longer visible from the control tower, which used to direct airplanes to specific parking bays. “Because of the complexity of the Naia airport layout today, ramp controllers became a necessity,” Ramo said, adding that their job is to direct airplanes to specific parking bays. At the same time, he said the increase in traffic volume also made the ramp controllers an important cog in airport operation. “Before they even start their engines, pilots has to call the ramp controllers to ask permission to start engine, otherwise, they would be wasting fuel while waiting in line for takeoff,” Ramo added. He said ramp controllers even direct pilots when to be “pushed back” from their parking slots by means of heavy tow trucks. Once the engines have started, ramp controllers guide the pilot toward the taxiway. “Once on the entrance to the taxiway, that would be the time that ramp controllers hand over the pilot to the ground controller at the Manila Tower for taxi instructions toward the active runway,” he said. “Once the pilot is ready to take to the air, the aerodrome controller who issues the clearance for takeoff,” Ramo added.
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and their staff to as high as 2,830 public officials and workers. This, she said, has a price tag of about P30 billion to P59 billion every year. This estimate is quite conservative, since it assumes that the existing government bureaucracy will not require additional cost. However, Australian National University Prof. Paul Hotchcroft said federalism will entail the addition of 10 to 12 agencies or offices, depending on the number of states. Expanding government line agencies means not only costs, but also requires additional manpower in each state. Edillon said this is the same adjustment that private companies need to implement. However, she said, the question is whether the country has a sufficient number of accountants, engineers and other professionals and rank-and-file workers to run these states at the subnational level. Llanto stressed that it is important for the Philippines to carefully examine the possible implications of shifting to federalism using a multidisciplinary lens and to take into account the country’s political, economic, social and historical context. “A very important challenge
residents of District 2. We plan to finish that next year.” In an earlier statement, Quezon City Mayor Herbert M. Bautista said the funds collected from the hike in property taxes will be the “basis of special education fund that takes care of the needs of the K to 12 Program, like school buildings and science laboratories”. The actor-turned-mayor said the funds will also support law and order programs for the city’s 142 barangays. The city expects to rake in an additional P600 million to P700 million this year as a result of the tax hike. Real-property tax was the city’s second-biggest revenue source after business tax. The former accounted for about a fifth of some P17.919-billion gross collections in 2015 that, in turn, were 9.43 percent in excess of a P16.374-billion goal for that year and 15.52 percent more than 2014’s P15.512-billion take. Ramp controllers also direct incoming flights, who had to navigate the various taxiways in order to reach their specific parking slots. Last year the Manila Tower handled 280,000 landing and takeoff (runway events), an average of 767 aircraft a day. That is about 63 runway events per hour during a 12-hour peak period, or an average of 33 events per hour for 24 hours, according to Rudy Boctot, the president of an air traffic association. More flights could have been handled, but the aviation authorities limited them to not more than 40 events per hour for safety considerations. “The Icao projected that 280,000 a year would double in the next five years. But our capacity has not improved. We need to address several related problems, such as airport efficiency, the continued exodus of air traffic controllers and the need to train more of them,” Boctot said. “Presently, there are 700 air controllers nationwide, assisted by some 100 non-ATC at the communication facility,” he added. Today, there are about 48 ramp licensed ramp controllers distributed across the four Naia passenger terminals. Of these, more than half are 70 years old. However, the Naia could not do away with the old foggies for lack of replacement. Switching them for new hires would also require that the newcomers should have the required Icao license, issued by the Caap, Ramo said.
before us in the policy research and academic community is to clarify the policy discourse on federalism. There is not only one model of federalism that countries with a federal structure of government have followed. “It can be assumed that the federal states that we have today had agreed to adopt a particular federalist structure that would best address their deeply cherished goals, challenges and experiences,” he said. The conference presentations covered topics ranging from allocation of functional responsibilities, taxing powers and management of financial resources, delineation of territorial boundary of states, treatment of local government units, to political stability of the proposed shift to federalism and its relationship and effects to political parties and political dynasties in the country. There were also sessions that delved on concepts of centralization versus decentralization in both the administrative and political spheres, including comparisons and key lessons from countries that adopted a federal form of government, such as Germany and the United States. The APPC serves as the main activity of the Development Policy Research Month, an annual nationwide celebration led by PIDS every September pursuant to Presidential Proclamation 247.
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Editor: Vittorio V. Vitug • Wednesday, September 20, 2017 A3
DOJ, senators cite prosecution ‘weakness’ of P6.4-B drug case
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By Butch Fernandez
@butchfBM
ustice department officials had confirmed that the government’s case involving the seized illegal-drugs shipment could be weakened by questionable chain of custody, Senate probers were told on Tuesday. Sen. Richard J. Gordon, who chairs the ongoing Senate inquiry into the P6.4-million shabu shipment from China, admitted that the broken chain of custody of the seized drugs could “weaken the prosecution”, even as he expressed optimism that “the case is not dead”. This, after Sen. Panfilo M. Lacson Sr. noted that from law enforcers’ point, the case is getting complicated after authorities “split custody” of the 604 kilos of shabu between the Philippine Drug Enforcement Agency and the Bureau of Customs, which
AFP: 18 hectares more to go before Marawi City liberation
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he military still needs to wrest control of an area about 180,000 square meters (sq m), or 18 hectares, in Marawi City before it can declare that its war against the MauteIS group is finally over. Soldiers also have to clear at least 300 remaining structures, including houses and buildings with homemade bombs, to fully liberate the city from the clutches of the terrorists who have been fighting the government since May 23. Military Public Affairs Office Chief Col. Edgard A. Arevalo gave a situation of the battleground on Tuesday as the military’s deadline of October 26—the retirement date of Armed Forces Chief of Staff Gen. Eduardo M. Año—to end the fighting approaches. “They are moving within the area of around 10 hectares, but the area that still needs to be cleared is about 15 [hectares] to 18 hectares,” Arevalo said. The 10 hectares, or about 100,000 sq m, have been designated as the battle zone between the soldiers and the terrorists who were believed to be still holding at least 40 or so civilians as captives. The hostages being held by the Maute Group were among the reasons military officials, and even President Duterte, said the push against the terrorists, who are now only between 30 and 40 fighters, has slowed. Two captives, including Fr. Teresito “Chito” Soganub, were rescued by soldiers last Saturday following their recapture of the Bato Mosque, which was occupied by militants since May. Defense Secretary Defin N. Lorenzana said on Monday that more than 600 terrorists have been killed since the fighting broke out almost four months ago, which was spawned by a failed government operation to get local IS head Isnilon Hapilon. Meanwhile, Arevalo said Soganub did not say if he had been forced into converting to Islam by his captors. “There is no categorical revelation by Father Chito that he was forced to convert to Islam,” he said. The Roman Catholic priest was presented by Lorenzana and Año during a news conference on Monday afternoon at Camp Aguinaldo. The priest remains at the camp undergoing debriefing. Rene Acosta
Palace suspends government work, classes in public schools on Sept. 21
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ork in government and classes in public schools and universities on Thursday are called off by Malacañang to give way to massive protests organized by administration critics. As militants, church leaders, human-rights activists, indigenous peoples and opposition figures prepare to troop to the streets on Thursday, Malacañang has decided to suspend government work and classes on what it called as a “national day of protest”. “The President has announced September 21 as a national day of protest, a day set aside for people to exercise their constitutional rights to freedom of speech, peaceful assembly and to seek redress for their grievances against the government past or present,” Presidential Spokesman Ernesto C. Abella said in a news briefing on Tuesday. Meanwhile, the National Disaster Risk Reduction and Management Council (NDRRMC) has postponed the nationwide simultaneous earthquake drill on Thursday. According to the NDRRMC, the drill was called off because most of the pilot areas are government offices and public schools, which will be shut down on Thursday due to suspension of work and classes. Administration critics have scheduled protests nationwide on Thursday in commemoration of the martial-law declaration of the late strongman former President Ferdinand E. Marcos. They will also denounce the spate of killings under the Duterte administration’s flagship campaign, the war on drugs. Abella said the President has instructed security forces to keep off protests so as to let the activists freely express their indignation against the government. “Law-enforcement authorities are directed to stay away from mass actions and to exercise maximum restraint, unless their intervention is necessary to maintain public order,” Abella said. Elijah Felice Rosales
seized the illegal-drug shipment in a follow-up operation at a Valenzuela warehouse. “Separate cases were filed by different law agencies,” Gordon pointed out. “I don’t want to advertise the weakness of the prosecution, but I am aghast at statements here,” he said, adding cases should be filed against erring officers. Gordon voiced concerns that big drug-haul cases are being thrown out due to broken chain of custody of the
evidence on drug seizures. He cited reports about a drug case being dismissed four months after a raid in January due to alleged infidelity in custody of evidence. “We have a very sordid record of drug cases,” Gordon lamented, insisting that “when a drug case ensuing from a raid is already filed, it should not be dismissed. I hope you understand my outburst.” The senator added he just “wanted to make sure we
win cases against illegal drugs...help us unmask the corrupt and reveal those doing wrong.” This developed as Lacson clarified in an interview that, “The law is clear: there are specific timelines that should be followed to destroy seized drugs by burning.” For instance, Lacson cited the case of a big drug haul in San Juan last December, but has yet to be destroyed even after the charges have been filed in court.
Economy
A4 Wednesday, September 20, 2017 • Editors: Vittorio V. Vitug and Max V. de Leon
BusinessMirror
Senate approves bill on ‘tighter scrutiny’ of Executive spending
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By Butch Fernandez
@butchfBM
he Senate, voting 18-0, passed on Monday a proposed law mandating the country’s economic managers to render biannual reports to Congress on the “status and directions” of fiscal and monetary policies.
Coauthored by Sen. Sherwin T. Gatchalian and Senate President Pro Tempore Ralph G. Recto, Senate Bill 1483, once enacted into law, will require the secretaries of finance, budget and the National Economic Development Authority and the governor of the Bangko Sentral ng Pilipinas to report to a Joint Congressional Oversight Committee on Fiscal and Monetary Policies twice a year. In mustering the unanimous vote on third and final reading, its authors said the proposed Fiscal and Monetary Report Act of 2017 is expected to result in “greater transparency and public accountability” in the formulation and implementation of the Executive department’s economic policies by regularly updating lawmakers on the government’s current fiscal status.
Gatchalian added the remedial legislation was crafted to “ensure transparency in the government’s monetary and fiscal-policy direction by mandating public disclosure of information to members of Congress. “Under this measure, Congress will be regularly updated on the real economic status of the government,” said Gatchalian, chairman of the Senate Committee on Economic Affairs and principal sponsor of the measure. Once enacted into law, monetary and fiscal managers will be required to report before a Joint Congressional Oversight Committee on Fiscal and Monetary Policies, which include the chairmen of the Senate Committees on Finance, Ways and Means, and Banks, Financial Institutions and Currencies serv-
SB 1483 The bill that requires the secretaries of finance, budget and the National Economic Development Authority and the governor of the Bangko Sentral ng Pilipinas to report to a Joint Congressional Oversight Committee on Fiscal and Monetary Policies twice a year
ing as members. In addition, the Senate minority bloc shall appoint a member to represent the group in the oversight committee. On the other hand, the House of Representatives’s panel will be led by the chairman of the House Committee on Economic Affairs, with the chairmen of the House Committees on Appropriation, Ways and Means, Economic Affairs, and Banks and Financial Intermediaries, as well as a representative chosen by the House minority bloc, as members. Gatchalian said the proposed law, likewise, requires finance department officials to spearhead discussions on government’s fiscal policy
and submit written reports on the Consolidated Public Sector Financial Position, National Government Debt Service Expenditures, Foreign and Domestic Borrowings, National Government Revenues and National Government Financing Program and Outstanding Debt, while the Neda shall submit a written report on economic developments and prospects in the labor market, macro-economy, gross national income, GDP and its components, unemployment, youth unemployment and underemployment. In addition, the budget department is expected to report on the status of the National Budget, Status of Expenditure Program; Status of Disbursement; Statement of Appropriations, Allotments, and Obligations and Balances. Gatchalian added that the Bangko Sentral’s biannual report to the joint committee shall include data on monetary aggregates and their components; purchases and sales of foreign exchange and of international reserves; balance of payments; indices of consumer prices and of import and export prices; exports and imports volume and value; and financial status of the BSP and the banking industry. The senator said the biannual reporting is seen to “enhance public accountability and strengthen fiscal responsibility, consistent with the country’s commitment to good governance” under the Philippine Development Plan 2017 to 2022. Moreover, he admits the proposed law was crafted to “provide lawmakers the forum to meticulously review government’s spending habits and planning strategies, compared to the present system where congressional oversight of fiscal management is limited to budget analysis during the annual budget season.” At the same time, Gatchalian said Congress seeks to be regularly informed about how government manages and disburses public funds. “We need to be updated on the execution of the executive’s fiscal and monetary policies and the real fiscal condition of the economy, so we may timely come up with legislative solutions when they meet stumbling blocks,” the senator said.
BOI grants tax perk, approves launch of P322.7-M steel plant
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he Board of Investments (BOI) has approved a P322.7million steel plant of Portal Steels Inc. that qualifies the upstart company as a new operator under the Investment Priorities Plan (IPP). In a news statement issued on Tuesday, the investment-promotion agency announced Portal’s new steelmaking facility has been entitled to avail itself of tax incentives as a manufacturing activity in the IPP. “Steel companies stand to benefit in light of the government’s ‘Build, Build, Build’ strategy to usher the country in the ‘golden age of infrastructure’ with infrastructure spending of up to 7 percent of the country’s gross domestic product,” Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said. The firm is expected to produce steel billets and rebars at an annual production rates of 48,000 metric tons (MT) and 22,800 MT, respectively. Portal’s commercial operations will start in December this year, with an initial employment of 75 personnel. Around half of the billet production is for commercial sale to other rolling mill operations in the local and foreign markets, while the other half will be used as input in the company’s integrated rolling mill operations. Catherine N. Pillas
news@businessmirror.com.ph
ILO report: 40 million still trapped in modern slavery By Cai U. Ordinario
@cuo_bm
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odern slavery, forced marriages and child labor threaten the ability of countries to meet the Sustainable Development Goals (SDGs). This was the primary finding of a report released by the International Labor Organization (ILO) and the Walk Free Foundation, in partnership with the International Organization for Migration (IOM). The report stated that some 40 million people are trapped in modern slavery; 15.4 million people were living in a forced marriage; and 152 million children are forced into child labor. “The message the ILO is sending today—together with our partners in Alliance 8.7—is very clear: The world won’t be in a position to achieve the SDGs unless we dramatically increase our efforts to fight these scourges,” ILO Director General Guy Rider said in a news statement. The new estimates also showed that women and girls are disproportionately affected by modern slavery, accounting for almost 29 million, or 71 percent of the overall total. Women represent 99 percent of the victims of forced labor in the commercial sex industry and 84 percent of forced marriages. The research reveals that, among the 40 million victims of modern slavery, about 25 million were in forced labor and 15 million were in forced marriage. Child labor remains concentrated primarily in agriculture (70.9 percent). Almost one in five child laborers work in the services sector (17.1 percent), while 11.9 percent of child laborers work in industry. The highest number of children aged 5 to 17 engaged in child labor were to be found in Africa (72.1 million), followed by Asia and the Pacific (62 million), the Americas (10.7 million), Europe and Central Asia (5.5 million) and the Arab States (1.2 million). Approximately one third of
children aged 5 to 14 engaged in child labor are outside the education system. Thirty-eight percent of children in hazardous work aged 5 to 14 and almost two-thirds of those aged 15 to 17 work more than 43 hours per week. “This speaks to the deep seated discrimination and inequalities in our world today, coupled with a shocking tolerance of exploitation. This has to stop. We all have a role to play in changing this reality—business, government, civil society, every one of us,” Andrew Forrest AO, chairman and founder of the Walk Free Foundation said. The new global estimates are a collective effort from members of Alliance 8.7, the global partnership to end forced labor, modern slavery, human trafficking and child labor. It brings together key partners representing governments, UN organizations, the private sector, workers’ and employers’ organizations and civil society in order to achieve SDG Target 8.7. The SDGs, or Global Goals, are set of 17 socioeconomic goals that 193 United Nations membercountries, like the Philippines, committed to meet by 2030. The goals are composed of around 169 targets and over 300 global indicators. The SDGs were adopted in September 2015. The Global Goals aim to end poverty and hunger, promote universal health, education for all and lifelong learning, achieve gender equality, sustainable water management, ensure sustainable energy for all, decent work for all, resilient infrastructure and reduce income inequality between and among countries. The goals also include create sustainable cities; ensure sustainable consumption and production; take action against climate change; conserve and sustainably use oceans and marine resources; reduce biodiversity loss; achieve peaceful and inclusive societies; and revitalize global partnership for development.
Franchisers see 20% sales growth this year
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he Association of Filipino Franchisers Inc. (Affi) is aiming for as much as 20-percent growth in sales this year on the back of steady growth of both franchising and nonfranchising members. Affi President John Chung said the new sales target is expected to top 2016’s haul of P107 billion from its 170 members. “This [was obtained] from a franchising consultancy study on Affi members. Member growth has been stable, but with the new board of directors and their aggressive marketing on social media, we can probably hit or exceed that 10-percent to 20-percent target,” Chung said during the media launch of Affi’s 16thAnnual Franchise and Business Expo. Part of this growth can be credited to Affi’s move to welcome non-franchising members into the association, and aid them in becoming part of the commodity chain of the bigger franchisers. “Two years ago we welcomed nonfranchising members. They’re mostly suppliers to other members,” Chung said. Nonfranchising members take up 20 percent of Affi’s 170-strong membership base. In 2016 the association welcomed the likes of JJ’s Inasal, Uratex and Gardenia. Also driving this growth is the gradual expansion of its members into the Asean region. Affi members like Lay Bare, Julie’s Bake-
₧107B The total Affi sales haul in 2016
shop and Fiorgelato already have a footprint in Asean. Chung’s own business, perfume station Acquasuisse, is aiming to enter the Australian and US markets. As a conduit to help micro, small and medium enterprises (MSMEs), the Affi, an association of home-grown franchising businesses, maintains a strong partnership with the Department of Trade and Industry (DTI) to be able to avail of services at a lower cost through its shared service facilities (SSF) program. “We’re trying to promote and help these local brands. One way is by connecting them to government agencies that give their services for free, or at lower cost. In the DTI’s SSF program, they can help you with packaging your products at a minimal investment,” Chung said. Affi’s Annual Franchise and Business Expo will be held from September 29 to October 1 at the World Trade Center. Expected foot traffic is around 10,000 to 15,000 and exhibitors will number to 300. Catherine N. Pillas
Agriculture/Commodities BusinessMirror
news@businessmirror.com.ph
Editor: Jennifer A. Ng • Wednesday, September 20, 2017
A5
Solon wants Pinoys to stop wasting food Bfar awaits DBM nod for set up of special account By Jasper Emmanuel Y. Arcalas @jearcalas
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Bloomberg
By Jovee Marie N. dela Cruz
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@joveemarie
leader of the House of Representatives is pushing for the passage of a measure that seeks to reduce food waste by requiring businesses to donate or recycle excess food.
Currently, Deputy Speaker Sharon Garin of AAMBIS-Owa said there is no law in the Philippines that combats the increasing amount of food waste in the Philippines. Last month Garin filed House Bill (HB) 6235, which enumerated the various food waste-reduction strategies that should be adopted by food-related businesses, local government units (LGUs) and households. “Much is needed to be done to reduce food wastage. Behavioral change is necessary to combat this problem,” HB 6235 read. “It is high time for the government to its part not only for the Philippines, but also because this has become an alarming global problem,” it added. Citing data from the Food and Nutrition Research Institute of
the Department of Science and Technology, each Filipino wasted an average of 3.29 kilograms of rice per year. Under HB 6235, research will be conducted into how to efficiently use food waste generated by businesses and households. It also calls for creation of the Food Waste Reduction Committee composed of the chiefs of the National Nutrition Council, and the departments of Environment and Natural Resources, Social Welfare and Development, Education, Trade and Industry, Health, Science and Technology, and Interior and Local Government. The committee will require supermarkets and grocery stores to sell surplus or leftover food still fit for human consumption at discounted prices to consumers. Under the measure, the com-
mittee will determine which businesses, such as supermarkets, grocery stores, restaurants, school and office cafeterias and other similar food establishments, will be covered by the law based on the size, number of clientele and amount of food being sold, distributed or manufactured for public consumption. Garin said food-related businesses will be required to donate all its surplus or leftover food to accredited charitable institutions and foundations; shoulder the costs of transporting donated food from business location to the accredited charitable institutions; and ensure that donated food is unadulterated and in good condition. The bill requires food-related businesses to enter into an agreement with waste management and recycling firms to recycle food waste into fertilizer or compost. These firms would also be compelled to maintain foodwaste levels at a target that will be set by the committee. The committee will also provide guidelines, such as health and safety standards, in the collection, storage and distribution of food donations. To encourage food donation, the bill provided that businesses will not be subjected to any civil or criminal liability arising from nature, age, packaging or condition of the donated food.
The world’s best caviar doesn’t come from Russia anymore
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ention China alongside almost any food product, and people get nervous. After international incidents involving bleach-soaked meat, antifreeze-laced apple juice and pine nuts “unfit for human consumption”, the country “is known for tainted food because of repeated quality-control scandals”, says Shaun Rein, managing director for the China Market Research Group. Kaluga Queen, which produces its caviar about 300 miles southwest of Shanghai, is mindful of these associations. “The biggest obstacle is the low trust of Chinese food safety,” says Lily Liu, marketing manager for parent company Hangzhou Qiandaohu Xunlong Sci-tech Co. And yet, after the first tin was shipped in 2006, Kaluga Queen quickly became the caviar of choice for 21 of the 26 Michelin threestarred restaurants in Paris, including Alain Ducasse at the Plaza Athénée Hotel. Seafood specialist Eric Ripert serves it at Le Bernardin in New York. Lufthansa offers it in first-class cabins. The company’s sturgeon roe was even part of former US President Barack Obama’s meal at the 2016 Group of 20 summit. But because most consumers still associate Chinese brands with inexpensive knockoffs, the provenance of Kaluga Queen caviar is rarely mentioned. Alexandre Petrossian, vice president of the namesake caviar purveyor, sells Kaluga Queen-sourced products
Kaluga Queen’s line of premium Chinese caviar. Kaluga Queen/Bloomberg
at the company’s boutiques worldwide but doesn’t label the caviar as Chinese on its tins, where 30 grams can average $150. “Chinese caviar was very hard to sell for the first three years,” he says. “It was difficult to convince people that it was not a cheap product. There is cheap Chinese caviar, but what we carry is one of the best on the market.” Until recently, Russia and Iran dominated the caviar export market, harvesting the delectable eggs from beluga sturgeon in the Caspian Sea. Overfishing there eventually landed them on the endangered species list, and as supply dwindled, other nations, including Japan, Israel and China, have started to fill the gap. “Exports of Chinese caviar will boom because of sanctions and lim-
ited supplies from Iran and Russia,” Rein says. “Many restaurateurs will buy Chinese caviar because of good quality, reasonable price and ample stock.” Kaluga Queen turns out 60 tons of caviar per year, making it the largest producer in the world, according to the company. It sells five kinds, but Petrossian’s bestseller is Huso Hybrid ($210 for 30 grams), which comes from a hybrid of Kaluga and Amur sturgeon. The fish are raised in the Zhejiang province of China, where the Huangshan Mountains supply the man-made Qiandao Lake with fresh, cold water. Each sturgeon has an identification number, and each tin has a code, which customers can use to trace the fish’s color, as well as the results of its regular physicals. Bloomberg News
he Bureau of Fisheries and Aquatic Resources (Bfar) is awaiting the approval of the Department of Budget a nd Ma nagement (DBM) for the creation of a special account consisting of fines slapped on poachers. B far A s s i s t a nt D i r e c t o r Drusila Esther E. Bayate said the attached agency of the Department of Agriculture has formally requested the DBM last month to establish a special account where the fines could be lodged pending the set up of the Fisheries Management Fund (FMF). “The Bfar is positive that the DBM will approve it because it is in the law. Hopefully, the special account could be established within the year,” Bayate told reporters in a forum in Quezon City on September 19. Since the amended Fisheries Code was implemented, Bayate said all fines collected by the Bfar from poachers were remitted to the National Treasury due to the absence of the FMF.
“When the Bfar started imposing fines, the money was remitted to the National Treasury. If we did not do this, the Office of Ombudsman can file charges against us,” she said. Republic Act 10654 provided for the creation of the FMF, which would consist of fines and penalties slapped by the government on poachers, as well as contributions in the form of endowments, grants, donations, which are exempted from donor and other taxes. Under the amended Fisheries Code, first-time violators found administratively liable shall be punished by a fine of $600,000 to $1 million or its equivalent in Philippine currency. The collective funds from the
fines and penalties shall be allocated by the FMF as follows: 15 percent for the purchase and upgrade of maintenance vessels and other monitoring and surveillance-related equipment. It will also allocate 5 percent for litigation expenses, 25 percent for operating costs and capacity buildings of the National Fisheries and Aquatic Resources Management Council and 5 percent for laboratory facilities and equipment upgrades. The FMF will set aside 5 percent for research and development activities; 10 percent for scholarship grants for children of fishermen; 15 percent for livelihood programs for production enhancement and poverty alleviation; and 15 percent for assistance to fishermen in the form of shared facilities. Bayate said the set up of a special account would ensure that fishermen would benefit from the fines collected from poachers. Data from the Bfar showed that it has collected some P12.8 million in fines from poachers as of August.
A8
Banking&Finance
Wednesday, September 20, 2017 • Editor: Jun B. Vallecera
BusinessMirror
news@businessmirror.com.ph
Ten-year Treasury rate falls as BTr tests enhanced trading mechanism
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en-year Treasury bonds the government put out on Tuesday sold the full P15 billion as intended and at the same time proved the critical role played by a market maker, according to the Bureau of the Treasury (BTr).
Officials awarded the entire batch on the back of a more efficient bidding process arising from the support for the proposed enhanced government securities eligible dealer (GSED) program. According to Deputy Treasurer Erwin D. Sta. Ana, the auction turnout may be traced to the improved bid efficiency of the
GSEDs under an enhanced program to be rolled out in the coming months. “Obviously, we’re getting support from our GSEDs. In terms of bid efficiency, we’re also noticing that bid efficiency is getting better. The spread from the lowest to the highest is narrower and tighter. That’s quite efficient bidding for us,” Sta. Ana said.
PH-OGP, The Philippine open government partnership Part One
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imply, we wish to bring to greater awareness this ongoing program that promises long-lasting positive influence to good governance in the government, with the strong engagement of the private sector. Let the PH-OGP brochure say it in a capsule: “The Philippines is one of the eight founding countries of the Open Government Partnership [OGP], a multilateral initiative that aims to secure concrete commitments from governments to promote transparency, empower citizens, fight corruption and harness new technologies to strengthen governance. On September 20, 2011, during the formal launching of the OGP, the country’s leaders endorsed the Open Government Declaration and announced its country action plan in a formal ceremony at the sidelines of the United Nations General Assembly in New York, US. “Today, the new administration under President Duterte remains committed to expand, deepen and institutionalize ongoing governance reform initiatives. Part of this commitment is the implementation of the Third Philippine OGP National Action Plan. “Moving forward, the Philippines aims to develop a new PH-OGP Action Plan that is in line with the reform and partnership for change agenda of the new government. The plan is to deepen the consultation process further, include more branches in government, and give the citizens a proactive role in the PHOGP process.” A distinctive characterization of PHOGP is the wide participatory engagement of public and private sectors—in the formulation of National Action Plans (NAP); in their implementation; in their monitoring; and in the evaluation of performance. The NAP consists of very specific projects as prioritized, identifying implementers in both government and private sectors, establishing twoyear cycle achievement goals, requiring performance documentation and reports not just to national but to international review boards or monitoring entities. There is a national PH-OGP Steering Committee that exercises oversight functions over the development and implementation of the NAP, half of the membership from the government and half from the private sector, emphasizing the multistakeholder cooperation. A participative structure of collaborative work is in place. The PH-OGP has a technical working group composed of technical representatives from the DBM, DILG, Neda and the Office of the Cabinet Secretary and non-governmental Steering Committee members. All decisions, agreements and action items are documented and posted online through the OGP web site. Membership of non-governmental representatives in the steering committee is distributed by sector: four from civil-society organizations (CSOs), in
FINEX free enterprise Santiago F. Dumlao Jr. turn, representing the National Capital Region, Luzon, the Visayas and Mindanao; two from academe; one from business (currently Finex); and one from a public-sector union. The international development partners of OGP include USAID, UNDP, ADB, World Bank, Make All Voices Count Global Initiative for Fiscal Transparency. In the 2015-2017 PH-OGP Plan, there were identified 13 programs/initiatives, most of which, by self-evaluation, were rated satisfactory in their fulfillment of commitments/targets. These programs are ongoing. Let us choose one example from the PH-OGP Status Report Summary as of December 2016, to appreciate the value of this partnership. In the 2015-2017 PH-OGP Plan, the first program/initiative identified was the “full disclosure policy” (FDP) under which there would be—“Mandatory disclosure of key financial documents of LGUs [e.g., budget, procurement and special purpose fund reports, such as internal revenue allotments] in the FDP portal and in at least three conspicuous places.” The commitments of the national government through the DILG, and of the local governments, through the Union of Local Authorities in the Philippines (Ulap), were for provinces, cities and municipalities to be fully complying to the FDP at 75 percent participation by 2015, 80 percent by 2016 and 85 percent by 2017. On the part of the private sector, through the Budget Advocacy Group (BAG), the commitment was to use the uploaded data in the FDP portal in at least five regions and produce reports or data visualization. As of the third quarter of 2016, the DILG and Ulap commitments have been fulfilled (80-percent full compliance). As to BAG’s commitment, local CSOs in 15 LGUs in five regions have been trained in analyzing selected FDP data. Development of one visualization is ongoing, as of year-end 2016. In other words, commitments are being accomplished. The openness in reporting performance by LGUs is taking root, and as this openness creates its own momentum of compliance, in nation-wide observance, with national government support, and private sector continuing engagement and encouragement, an open government culture gets progressive traction. This is significant to allow citizen constituents to participate proactively in their own local government affairs—intelligently and positively on a well-informed basis. That’s grassroots democracy exemplified. Change is coming. Believe that.
The reissued bonds with a remaining life of nine years and seven months attracted bids totaling P26.287 billion that allowed the bidding committee to award the full P15 billion. Treasury officials rejected excess bids totaling another P11.287 billion. The 10-year rate fell 7.1 basis points at the auction on Tuesday to 4.647 percent, from 4.718 percent at the previous auction. “Several weeks back, we launched the enhanced GSED program. Although we haven’t really finalized the mechanics, I think the GSEDs are preparing for that already and this turnout actually reflects [their] support,” he added. According to Sta Ana, the full intent of Treasury officials in pursuing the enhanced program was to introduce two-way quoting in the market. “We wanted to promote market making
so we will be selecting GSEDs that would be our market makers,” he said. The program is scheduled to roll out in a few months and that implementing guidelines are being finalized. In the securities trade, market makers are financial institutions standing ready to buy or sell the bonds in this case so that those looking to invest in the IOUs know they can go in or out of the market quickly. The knowledge that one can buy or sell bonds from a market maker for a quick profit reflects the efficiency of that market and the bonds being sold there. This ready liquidity assures bondholders that they can enter the bond market or leave quickly at any time because the market maker is there to facilitate the trade. “To date, the total outstanding volume for the series is P54.7 billion,” Sta. Ana said. Rea Cu
Unescap declares Manila most ready among Asean peers to pursue infra buildup
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he United Nations Economic and Social Commission for Asia and the Pacific (Unescap) has found the Philippines most ready among its peers in the region to carry out an ambitious infrastructure-buildup program. According to Finance Undersecretary Gil S. Beltran, the Philippines owns a number of positive influences, including substantial financing opportunities from the country’s development partners, the tax-reform program and rising revenue collection and the declining debt service ratio, that all contribute to an adequate fiscal space allowing the $305-billion economy to pursue an expansionary policy. Beltran said apart from ample fiscal space, the Unescap also noted the country’s strong financial system, its ready liquidity supported by a good supervision and its buoyant saving rate. “The workshop found the Philippines to be among the most ready in Asean in boosting infrastructure development,” added Beltran, who is also the DOF’s chief economist. The government’s strong project evaluation and prioritization system based on economic viability in undertaking infrastructure projects, and a right-of-way law under Republic Act 10752 encourages the government and landowners to agree promptly on land transactions.
This adds to the ease by which the various infrastructure projects are pursued and recognized as a positive influence by the Unescap, Beltran said. At a recent economic briefing in Singapore, Finance Secretary Carlos G. Dominguez III said that from 2010 to 2016, national government debt as a percentage of gross domestic product fell from 52.4 percent to 42.2 percent, or lower than the Asean average of 46 percent and the emerging market’s average of 47 percent. This means the Philippines can deploy far more resources than its peers for the construction of public infrastructure that redound to greater and more inclusive growth down the line, he said. “The Philippines currently holds investment-grade rating, with a credit default swap spread below the Asean average,” Dominguez added. He Dominguez said the government has set aside more than $170 billion for infrastructure in the remaining five and a half years under President Duterte. Some $23 billion will fund various infrastructure programs next year alone. The Unescap, the largest UN body serving the Asia Pacific, recently convened in Manila its Workshop on Infrastructure Financing Strategies to discuss the Philippines’s infrastructure needs and the different financing modes and sources available to the country. Rea Cu
Trade group backs new commodity import policy
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he Philippine Cement Importers Association (PCIA) on Tuesday expressed full support for the Department of Trade and Industry (DTI) that rejected the adoption of more stringent imports safeguards on pure importers, while exempting imports made by local manufacturers. In a consultation meeting called by Trade Assistant Secretary Ernesto V. Perez, the Bureau of Philippine Standards (BPS) presented the latest department administrative order (DAO) setting new quality and conformity certification procedures, including a pre-shipment test, another seven-day product testing upon arrival, and another verification test plus a 10-percent surety bond on top of the PS license requirement. “We are satisfied with the latest DTI proposal. Now, there is equal footing between importations of pure traders and manufacturers-importers,” Philippine Cement Importers Association (PCIA) Executive Director Dani Enriquez said. “There are now many brands of cement in the country. It is good that the BPS is considering our proposal to include as requirement that every importation be covered by an affidavit of undertaking from the PCIA. The PCIA shall then compel importers to comply with DTI rules and regulations, and certify authenticity of testing reports and import documentations, which, I think, is where the DTI shall be needing some assistance.” The PCIA earlier cited the discriminatory effects of DAO 17-02/05 favoring imports made by local manufacturers over pure importers in violation of the key principles and obligations under the World Trade Organization, where the Philippines is a member. During the meeting, there was initial resistance from local manufacturers over issues on consumer protection that the members of PCIA said were one-sided. “The PCIA has the same concerns as what the local manufacturers are claiming when it comes to consumer welfare. If they still disagree with the DTI-proposed DAO and insist on procedures that they claim protect consumers, then I suggest that the same treatment be applied to all cement products whether they are imported or locally manufactured before they reach the consumer. I think that answers their concerns,” Enriquez said.
PHL water execs share center stage in Korea
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eaders of Metro Manila’s water-supply system discussed in Korea’s two major water conferences this week the 10-year water-security program under the Duterte administration and the successful public-private partnership (PPP) among Metropolitan Waterworks and Sewerage System (MWSS), Manila Water, Maynilad and Bulacan Bulk Water’s Luzon Clean Water Corp. MWSS Administrator and Asia Water Council Director Reynaldo V. Velasco served as one of the resource speakers at the first Asia International Water Week and the World Water
Cities Forum in Gyeongju, Korea, that began on Tuesday. Manila Water President Ferdinand M. de la Cruz and Maynilad President Ramoncito Fernandez also acted as resource speakers and delivered separate presentations on Drinking Water and Sanitation at the AWC Water Project Forum. “ The Korea water conference is an important event to further promote the country’s effective, participative and successful PPP legal framework started in 1997 by President Fidel V. Ramos through a concession agreement in the water industry that the Philip-
Case clippings
By Justice S J Ranada Jr.
WRIT OF AMPARO–archiving of case Archiving of amparo cases is a procedural measure designed to temporarily defer the hearing where no immediate action is expected, but where no grounds exist for their outright dismissal. Such archiving should be impelled by a valid cause, such as when witnesses fail to appear due to threats on their lives or to similar analogous causes that would prevent the court from effectively hearing and conducting the amparo proceedings. Balao v. Ermita 01 Aug 2017
GR 186050 Perlas- Bernabe, J
pines through Manila Water is now exporting to Asean countries like Myanmar, Vietnam and Indonesia,” Velasco said. Organized by AWC led by K-Water President Lee Hak-soo, the AIWW is a triennial water gathering for multistakeholders to seek tangible implementation for resolving Asian water problems and a forum for sharing AWC’s professional achievements, as well as knowledge sharing with other professionals’ experience and networks. Velasco is also the country’s official representative at the World Water Cities Declaration in the WWCF conference and the Water Declaration to the World in the AWC conference. The three water leaders shared best practices of the 20-year successful PPP in the Philippines. Before the MWSS’s privatization in August 1997, the water service coverage in Metro Manila only accounted for 53 percent and system water loss was more than half due to leakage, unmetered houses, or pilferage from the consumers. The successful MWSS privatization in August 1997 during the Ramos administration has brought good results. As of this year, 95 percent of the service area in Metro Manila to include areas in Cavite, Rizal and Laguna now enjoy ample water supply. Despite their massive capital expenditures for improvements of water supply and wastewater system, both Maynilad and Manila still rank among the cities in Asia and the Philippines with lowest and affordable water rates.
ExportUnlimited BusinessMirror
PHL’s BeamAndGo wins at Apec SME O2O Forum in Vietnam By Victorino Soriano Chief Trade-Industry Development Specialist Knowledge Processing Division, DTI-EMB
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E A M A N DGO, a start-up from the Philippines offering remittance service that allows overseas Filipino workers (OFWs) to buy digital gift certificates (GCs) for their families back home, bested 10 other start-ups from five AsiaPacific Economic Coopera- JONATHAN E. Chua (right), BeamAndGo CEO, receives his award tion (Apec) member-econ- for being the Startup with O2O Best Practice from Pei-Ti Hu omies to win the Startup (left), Deputy Director General of Small and Medium Enterprise with O2O Best Practice rec- Administration, Ministry of Economic Affairs of Chinese Taipei ognition during the Apec during the Apec SME 020 Forum held in Viet Nam on September 10. SME Online-to-Offline (O2O) Forum held at the Sheraton With BeamAndGo.com, OFWs Hotel in Ho Chi Minh City,Vietnam, can buy digital GCs for supermaron September 10. kets and pharmacies that will be Other start-ups who made their sent to the mobile phones of Filipitch were from Chile, Chinese Taipei, pinos back home. Once the digital Malaysia, Russia and Vietnam. GCs are received, the OFWs’ family Presenting before the Apec O2O member can immediately redeem Board of Directors, BeamAndGo CEO them at participating stores. Jonathan E. Chua said the start-up The recently concluded Apec SME company was established to provide a O2O Forum was the fifth event of the better way for OFWs to support their six O2O series of events scheduled loved ones in the Philippines other for this year. It aims to 1) enhance the than just providing cash. digital competitiveness and resilience “Our goal is to enable OFWs to of startups; 2) provide start-ups a platbuy food, medicine, health care, inform to present their business plans surance, education and other essento the Board of Directors; and 3) raise tials for their family in a way that is awareness of challenges that small, affordable, convenient, transparent, medium enterprises and start-ups may and sustainable,” Chua said. encounter in the digital economy.
Editor: Efleda P. Campos • Wednesday, September 20, 2017 A9
PHL exporters promote health benefits of coconut products in US
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HE Philippine Department of Trade and Industry (DTI)Export Marketing Bureau (EMB) supported 17 Regional Interactive Platform for Philippine Exporters (Ripples) Plus and enrolled Philippine coconut exporters in a 2017 US Coconut Roadshow.
Philippine exporters participating in the road show included Amazing Foods Corp., Chemrez Technologies Inc., Coco Plus, Coco Veda, Coconut Cures, Dignity, Eau de Coco, Franklin Baker Co. of the Philippines, Galo Organic and Naturals, Greenlife Coconut Products Philippines Inc., Hancole Corp., MarinduqueLand Corp., Pasciolco Agri Ventures, Nuco/ProSource International Inc., Wellness Care International Inc. and Tongsan Industrial Development Corp. Of the exporters, 11 of them were registered as nonexhibiting manufacturers in the 2017 Natural Products Expo East held at the Baltimore Convention Center in Baltimore, Maryland. Three Philippine coconut exporters—Franklin
Baker, Eau de Coco and Dignity— exhibited at the Expo. The expo’s trade show took place from September 14 to 16 and is considered the East Coast’s leading trade show in the natural, organic and healthy-products industry. The group of coconut exporters, together with key officials from the United Coconut Association of the Philippines (Ucap) and the Virgin Coconut Oil Philippines (VCOP), is currently on a US coconut road show, an outbound business-matching mission to several key cities in the US, to promote coconut oil and coconut-based products, like food, personal items and cosmetics, and even pet care. Coconut products support the healthy, non-GMO and gluten-free
lifestyle of the American market. On September 7 the Philippine coconut exporters participated in the 50th Asean Anniversary Forum organized by the Asean Trade Commissioners, in partnership with the Port of Los Angeles. It was an opportunity to network with the US businessmen and other Asean delegates. The next day, the Philippine Trade and Investment Center (PTIC)-Los Angeles organized a business-tobusiness meeting with 38 buyers and some contracts were signed during the event. Store checks were made at the Seafood City and Island Pacific Supermarket with possible marketing partnership with the latter. It was validated coconut oil and other by-products remain to be popular in the mainstream US market. PTIC-Washington, D.C., organized information sessions with the US Department of Agriculture, the Organic Trade Association, US-Philippines Society, Foodshowcase USA, the USA Halal Chamber of Commerce and Registrar Corp. The group was also briefed on the US Generalized System of Preferences (GSP) Program, including identifying coconut products that could benefit from GSP treatment. The meetings in Washington, D.C., highlighted the importance of the
policy aspects of exporting to the US, including compliance to US food-safety regulations, labeling and making Philippine exporters aware of other nontariff measures. More store checks were completed in Washington, D.C., namely, Dawson’s Market and Mom’s Organic Market. These stores cater to the mainstream US market and carry coconut oil, coco-based food, and personal care and cosmetic products. Representatives from the two stores confirmed that the American Heart Association’s (AHA) negative advisory on coconut oil has no ill effect to the sales of coconut-related products. They also confirmed cocobased products are popular and part of their customers’ healthy lifestyle despite the AHA’s recently issued presidential advisory against saturated fats as bad for heart health. An onsite visit at 2A Marketing, a Filipino importer and wholesaler, also gave our exporters a perspective of the fast-moving products in the Washington, D.C., metro area. The delegation also had an opportunity to dialogue with a number of US companies, including Franklin Baker and Carrington Farms, to exchange views on how to further educate American consumers on the benefits of coconut oil.
A10 Wednesday, September 20, 2017 • Editor: Angel R. Calso
Opinion BusinessMirror
editorial
Free tuition to shore up enrollment in agriculture courses
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resident Duterte signed into law Republic Act (RA) 10391, or the “Universal Access to Quality Tertiary Education Act”, last month. The law allows students in state universities and colleges (SUCs), local universities and colleges and state-run technical-vocational schools to enjoy free tuition. RA 10391 also provides that public tertiary and vocational schools would no longer collect miscellaneous fees. The grant of free tuition to students of public tertiary schools is one of Duterte’s campaign promises. This is probably the reason the President signed it despite the advice of his economic managers to reject it. The President’s economic managers had estimated that implementing the free-tuition initiative would cost the government some P100 billion annually. Some Cabinet officials had also expressed apprehension that the law would not truly benefit the poor. According to Budget Secretary Benjamin E. Diokno, only middle-class and upper-class students would benefit from it as only 12 percent of the poor get to state universities. Currently, the implementing rules and regulations (IRR) of the law are still being crafted by the Commission on Higher Education. Officials are targeting to come out with the IRR before June 2018 so that the free-tuition scheme will be implemented in all SUCs in academic year 2018-2019. This would enable more students, particularly those in rural areas, to enjoy free tuition. Government officials and school administrators can use this opportunity to shore up enrollment in agriculture courses. A comprehensive study on trends, prospects and policy directions in higher education in agriculture published in 2013 indicated that enrollment in agriculture courses declined by 1.5 percent on average each year. The study was conducted by the Philippine Institute for Development Studies and the Philippine Council for Agriculture, Aquatic and Natural Resources Research and Development. The Southeast Asian Regional Center for Graduate Study and Research in Agriculture (Searca) noted fewer students enroll in agriculture courses every year, despite the increasing demand for food and other farm products in the country. SUCs, particularly those in provinces, offer courses, such as agricultural engineering, agri-biotechnology, plant breeding and veterinary medicine. With the scrapping of tuition and miscellaneous fees, school administrators and government officials can now encourage enrollment in agriculture courses. The law also stipulates that poor students may avail themselves of stipend from the government. The government should also look into the suggestion of Searca to improve the curricula used in agriculture courses. Searca said the curricula of agriculture courses could include the application of new information and communication technologies to agriculture data analytics, agricultural technology and to solutions for agricultural development and providing space for transdisciplinary, problem and practice-based approach to learning agricultural science and entrepreneurship. Searca said agricultural education in the Philippines should focus on creating business opportunities from agriculture and developing the technical and entrepreneurial skills of students. The nonprofit organization argued that it is time for the Philippines to move up the value chain of agriculture to cover the entire agribusiness-commodity system and not limit its domain to just farm-level production. The expertise of agriculture graduates should now encompass the whole value chain, not just production, in view of the integration of Asean economies.
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SSS milestones as seen by winning essayist Art Amansec
All About Social Security Part One
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or this week’s column, let me share with you the milestones of the Social Security System (SSS) as presented by Jhoanna Lyn Garcia (senior communications analyst of the SSS Corporate Communications Department [CCD]) in her essay, titled “Ang SSS Noon Hanggang Ngayon: Kabalikat ng Miyembro Sa Anumang Hamon Ng Panahon” (as translated), the first-place winner in the Essay Writing Contest of the SSS 60th Anniversary Celebration. Here’s part one of her essay: Sixty years. Ten Presidents. More than 35 million members and 2 million pensioners. Truly, the SSS has gone far. But what really has the SSS been able to do for the welfare of its members? Together let us reminisce the past 60 years of the SSS in providing service, its downfall and rise as the institution that gives solace to and serves as partner of the Filipino work force. n 1957-1967. In the first decade of its operation alone, the SSS already showed its ability to address the challenges it is facing in the labor sector. In 1957 the Social Security Act of 1954 was promulgated, which established the SSS. It was also in this year where the SSS coverage of all employers in the private sector with 50 or more employees began. Likewise, in this year, the SSS started implementing the housing loan program, in coordination with the Home Financing Commission. In celebration of the first anniversary of the SSS, there were changes that were implemented. It has expounded
the coverage of employers, wherein even those with at least six employees were mandatorily covered and members for at least one year were allowed to receive sickness benefits. It was also in this decade where Republic Act 339 was approved, which intended to a) increase the amount of retirement benefits; b) widen the coverage of the SSS to include employees of foreign governments or global organizations; and c) implement the provision for non-transferability of benefits. It was also during this time where the loan program for the members was implemented, wherein the loan may be paid within one year in equal monthly installments. Amongotherimportanteventsduring this time was the implementation of educational loan program for members with two years of service with their employer, decentralization of operation of the SSS and the implementation of calamity loan program. n 1968-1977. At the beginning of the new decade, the SSS began to
intensify the programs it started and expounded the services it is giving to the members. In 1969 Republic Act 6111, otherwise known as the Philippine Medical Care Act, was approved, which provides for hospitalization and medical benefits to a lot of members who cannot afford to pay these expenses due to financial incapacity. It was in 1972 when this law was implemented. In 1972 former President Ferdinand E. Marcos signed Presidential Decree (PD) 24, increasing the amount of retirement benefits by 50 percent, increase in sickness benefits by 75 percent for members without dependents and increase in maximum daily sickness allowance from P8 to P12, coverage of those still seeking employment as prior registrants, and increase in contribution by 1 percent of the monthly compensation base, first in 1974 and, second, in 1979. It was in the year 1973 when overseas Filipino workers were included in the scope of voluntary membership, increase in the amount of retirement benefits, inclusion of illegitimate children as dependents and the exclusion of the member’s siblings as beneficiaries, and the filing of charges against employers who failed or refused to register their employees in the SSS or deduct from their salaries and remit contributions of their employees to the SSS by virtue of PD 177. In this decade, the P750 funeral benefits for the beneficiaries of deceased active and retired members was implemented, as well as the Employees’ Compensation and State Insurance Fund, which will provide medical benefits and financial assistance to members with illnesses, for work-related disability or death. n 1978-1987. During this time, SSS became the support system of Filipino workers in facing the crisis that challenged the ability and strength of ev-
ery Filipino. The pari-passu program was implemented for participating financial institutions, or PFIs, wherein the SSS allotted P1 billion for the program, pursuant to a Social Security Commission Resolution. At this time, condonation of penalties for unpaid housing loans was implemented. On account of the economic crisis our country was embroiled in, many workers lost their jobs. For the SSS to be able to support them in their suffering and be given an opportunity for a new beginning, in 1984, the SSS gave a loan equivalent to three months salary to these members. In this time, retirement pension was increased several times without the corresponding increase in contributions, and the same with funeral benefits. n 1988-1997. In this decade, the SSS started allotting funds for those intending to put up a business. Among the loans granted in the 1980s were: Membership Assistance for Development and Entrepreneurship, Industrial Modernization and Expansion Loan program, Special Financing Program for Vocational and Technical Schools and Small and Medium Industries Loan program. The SSS also started giving two months salary loan to all qualified members, and 13th-month pension for all pensioners of the SSS and EC. Farmers and fishermen earning at least P1,500 per month, household helpers with income at least P12,000 per year and nonworking spouse, were also included in the SSS coverage. It was in this decade where Republic Act 8282 was approved, which expanded the benefits being provided by SSS. Like the immediately preceding decade, there were several changes in the amount of benefits like monthly pension and funeral benefits.
To be continued
The United Nations global counterterrorism strategy Teddy Locsin Jr.
Free fire Continued from A1
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nother thing is clear: There can be no political accommodation with terrorism. We cannot buy safety from terrorism by yielding to any of its demands. We cannot live with terrorism because it will not let us live. Brazilian philosopher Roberto Mangabeira Unger told us in the classroom that the means prefigure the end. Terrorist means can only end up in a reign of terror as we have seen. It is said that one man’s terrorist is another man’s patriot. No. The new terrorists have no patria, no country, no cause other than a delight in inflicting torture and death to spread the terror of their name and thereby instil a willing submission to more cruelty. It is perilous because it can be selfserving to define terrorism. It is as hard
to arrive at a common definition of it as it is to define pornography: but we know it when we see it; we know it when we view what terrorists do—to the women and girls they rape and trade or murder after use; to the men and boys whose throats they slit or they burn or drown in cages; to those they fling from rooftops in boyish fun; and to the cities they take
and hold until they themselves destroy them or which have to be destroyed to liberate them. In the destruction of cultural artefacts terrorism is the enemy of memory so that those who survive know only the terror of their name. This is an evil so pure that it must be countered with means that are sure: a global effort against terror on every front by every society even those not yet threatened because they will be. In May 2017 terrorists pledged to Islamic State of Iraq and Syria and backed by foreign fighters proclaimed their control of Marawi City, the capital and largest city of Lanao del Sur in Mindanao in the Philippines with a population of 200,000. They had long before entrenched and fortified themselves in the community. We did not see it coming because we are a democracy pledged to diversity. The presence of foreign terrorist fighters spoke to the transnational nature of the takeover. While the international community is successfully closing doors to these terrorist groups new doors are opening up for them in other parts of the world. Mr. President, Marawi City high-
lights important points of the Report of the Secretary-General on the United Nations Global Counter-Terrorism Strategy. It reaffirms that memberstates regard terrorism as one of, if not the gravest, threat to peace and security anywhere in the world. The fight against terrorism should unite us all. Foreign terrorist operations do not recognize borders, and the complexity and reach of the threat they pose have expanded. Every civilized society they destroy is a platform for the destruction of another. To put a stop to them, member-states must work together. International cooperation must cover the whole range of the counterterrorism spectrum: from border control to countering the narratives of violent extremism—and always and ever to fighting it. Finally, the UN has assumed a critical leadership role in bringing together in a cohesive whole all the work on counterterrorism by member-states and the UN so as to bring about real results and not more rhetoric. On this note, the Philippines welcomes the creation of the United Nations CounterTerrorism Office.
Opinion BusinessMirror
opinion@businessmirror.com.ph
Wednesday, September 20, 2017 A11
Duterte must value life, ‘Build, Build, Build’ program has faulty underlying assumptions learn lessons from history Edgardo J. Angara
Michael Makabenta Alunan
on the contrary
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S we remember the September 21 martial-law anniversary and see people polarized again into partisan tugs-ofwar that is sucking us into political quagmires that could dangerously escalate into conflicts beyond control and repeat the specter of martial rule, President Duterte must heed the mounting people’s cry to give value and dignity to every individual life and to learn from the lessons of history. A déjà vu? Amid the series of extrajudicial killings (EJKs) and abuses by the police, people who witnessed martial law’s cruelties will feel a déjà vu, or a perceived repeat of the dark hideous past. This reminds us of Spanish poet George Santayana who said: “Those who cannot remember the past are condemned to repeat it.” Simply put, if we can’t learn from history, we are bound to repeat the same mistakes and nightmares, although the situation is different. Nonetheless, it helps to learn from history, which is replete and fraught with senseless wars resulting mainly from the follies and hubris of leaders who have fallen into political booby-traps, mostly of their own making. At this juncture of intensified partisan politics, the trajectory in the political atmosphere is an escalation of diatribes and verbal attacks, even going gutter, as sycophants and believers on both extremes trade barbs and expletives on social media. People affected will continue to push and advocate for what is legitimate right and express themselves within the limits allowed by law—free press, free speech and freedom of assembly. And on both extremes, there will be hotheads, who can’t take criticisms and will try to resolve conflicts through force. Some want another people power revolution, and will even welcome masochistically a martial law, as their ironic way to hasten mass discontent. On the other extreme are trigger-happy loyal law enforcers, who welcome martial law to be able to lord over again and quell discontent. The French term déjà vu brings us lessons from the French Revolution of 1789, which was believed infiltrated by British intelligence as the British empire didn’t want a repeat of the American Revolution a decade earlier. Its leader, Maximilien Robespierre, was swayed even into the rise of the Jacobin Reign of Terror that slaughtered thousands of the revolution’s sons and daughters, including progressives and intellectuals like chemist Antoine Lavoisier and later even Robespierre himself, who was guillotined to death without trial. The ends can’t justify the means. Although it is people’s movements that move history, our politically unorthodox bad-mouthing President, now known worldwide for his figurative oral diarrhea and footin-mouth disease, has the power and influence to do a reversal not only by softening his gutter and incendiary language, but to pursue meaningful, and not just cosmetic reforms. Initially, he was considered an enigmatic leader for captivating and mesmerizing the downtrodden hoi polloi with his “Change is Coming” battlecry that catapulted him to victory with 16 million votes. His ratings even hit 91 percent as people pinned their hopes on real change— stopping drugs, corruption, achieving peace with rebels, dismantling cartels and rent-seeking oligarchs and wiping out poverty. So far, what’s prominent is the rise in EJKs and is manifesting Saint Bernard of Clairvaux’s (1090–1153) saying that the “Road to Hell is paved with good intentions.” Duterte cited Niccolo Machiavelli, and must have embraced the latter’s notorious quotation, “The end justifies the means,” which justified dishonesty and killing of innocents to achieve control. Unfortunately, the advances in civilization,
technology, democracy, respect for due process and rule of law, have made Machiavellian ideas mere relics of the warring past. He could not invoke what he says is “retribution”, which smacks of Old Testament “eye-for-eye, tooth-fortooth” justice system, as the world is now governed by the civilized principles of the Westphalian Treaties of 1648, now enshrined in the United Nations. Learn Westphalian treaty doctrines. For almost a century and a half, starting with Torquemada’s Grand Inquisition of 1492, there were internecine wars all over Europe, which finally ended in the series of treaties of Wesphalia, Germany, from May to October 1648 upon the diplomatic efforts of genius Cardinal Mazarin, who gathered 109 delegations and 94 states and kingdoms all over Europe. Immediately before Westphalian lasting peace, there was the Thirty Years’ war (1618 to 1648) all over Europe, and earlier the “Eighty Years’ War (1568-1648). Millions were killed in all these wars fueled by the unending retributive “eye-for-aneye” justice system. Apart from their religious undertones, the wars among kingdoms and states, particularly those using shared rivers, were triggered after they out-taxed each other. And because resources like rivers are shared, Mazarin brilliantly called for the Westphalian doctrine of “Doing the Advantage for the Others” that finally led to lasting peace. The same Westphalian principles on state sovereignty, equality of states, nonintervention on each other’s, but helping others when in need, are the same that have been adopted by the UN. Costs of blind idolatry. The President’s perceived empathy for people created blind rabid loyal adherents, sycophants and minions, who even rejoice when he curses even big names and institutions, like US President Obama, the US Ambassador, the UN, Pope Francis, etc. Having been trampled upon for so long, the masses saw in Duterte their savior. Anthropology shows that in the ancient tribal ways, insulting one’s dignity was a higher crime than murder itself, that is why statements like Niyurakan ang pagkatao (trample one’s dignity) carry so much valueladen weight even today. They are even tolerant of his abuses that Duterte has been carried away and blinded himself by the trappings of power, forgotten the rule of law and even ignored the Senate’s recommendations over the Albuera mayor murder and pardoned the guilty from murder. It is likely his real opponents, out to destabilize him, may do the extreme like in the French revolution, and blame it on him, but he cannot blame anyone than himself for his tactless tolerance for abuses. Sadly, most of the victims of the war on drugs are the urban poor, who are mostly his supporters. He must be aware that the masses supporting former President Joseph E. Estrada were the same mob that helped bring him down. I hope the current exodus of Korean manufacturers to Vietnam and the recent 62-percent drop in foreign direct investments are not mainly because of the political insecurities, partly blamed on his posturings. E-mail: mikealunan@yahoo.com
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he Duterte administration is ushering in a “golden age of infrastructure” with its “Build, Build, Build” (BBB) program. The avowed goal is to fast-track infrastructure spending of P8.4 trillion. This will raise the ratio of infrastructure spending to GDP from 5.4 percent in 2017 to 7.4 percent in 2022. This is nearly on a par with international standards.
The proposed 2018 budget allocates P1.097 trillion, nearly 30-percent over the 2017 allotment. This huge amount for 2018 will fund various road and highway networks, railways, airports, and seaports. The BBB program is clearly a welcome intervention to correct decades of neglect. It will definitely,
if accomplished, make the Philippines more competitive. Several issues and challenges, however, loom ahead. First, the obvious issue of lack of capacity of our construction industry. The persistent infrastructure underspending of P355 billion a year from 2011 to 2016 shows such under-
Engineering insurance Dennis B. Funa
INSURANCE FORUM
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ne beneficiary of the government’s “Build, Build, Build” program is the nonlife-insurance industry through the offering of its engineering-insurance products and contractor’s bonds. Engineering works and construction projects can be exposed to numerous risks. Some of these risks would include “acts of nature”, or natural calamities, such as typhoons or earthquakes. With so many risks to consider, the contractor and the project owner can be placed in a disastrous situation without insurance coverage. Litigation can quickly ensue. The contractor assumes such an enormous responsibility that it would be a great financial burden should an accident occur. The delay can also cause prejudice to the project owner. In any case, the cost of insurance is added on to the cost of the construction project. There are a number of insurance categories comprising engineering insurance. All of these engineering insurance are designed to ensure the continuity of construction development projects whatever they may be, such as the construction of buildings, houses, schools, warehouses, manufacturing facilities, as well as roads, railways and other public infrastructures.
Engineering insurance is classified as a nonstandard-insurance product; Contractor’s All Risks (CAR) Insurance has been characterized as a very specialized line of business. The most common types of engineering insurance would include: CAR Insurance, Erection All Risk Insurance, Machinery Breakdown Insurance and Electronic Equipment Insurance. Other insurers would also offer: Deterioration of Stocks Insurance and Machinery Loss of Profits Insurance. Erection All Risk provides cover for machinery, equipment or apparatus during installation and erection of civil works. Machinery Breakdown Insurance covers breakdowns of machineries, mechanical and electrical equipment for various reasons, such as defects, negligence and faulty design, among others. While boiler insurance was introduced in the middle of the 19th century and machinery insurance was introduced at the turn of the 20th century, the
capacity. Of course, underspending may not be solely due to incapacity of contractors. It may also be due to red tape, right-of-way questions, or the weather. The huge doubts assailing the lack of capacity is because the infrastructure projects under the BBB program involve large numbers of manpower, including skilled, technical and common labor. But even now, just listening to real-estate developers and construction firms, they are hard-put looking for skilled workers, electricians, welders and plumbers—and even more difficult to recruit foremen, mid-level managers and supervisors. Explaining largely the current lack of manpower, the country’s labor force participation rate has been falling to such degree that in the past five years, only 415,000 people have entered the labor force every year. True, there are over 15 million and underemployed Filipinos of work-
ing age. But they do not possess the necessary skills or training for these massive public works projects. The second major issue is the sourcing of funds for the BBB program. It appears that the major funding source is through taxes. For instance, the TRAIN (Tax Reform for Acceleration and Inclusion) expects to raise the bulk of the revenues to support the infrastructure funding. It seems to me that sourcing the bulk of funds to finance this gargantuan infrastructure program from taxes does not make sense at all. It should be sourced principally from Official Development Assistance, from the private sector through public-private partnership, and borrowings, especially for income-enhancing public works. Relying mainly on taxes is not only bad economics but also bad psychology.
first CAR Insurance policy was issued in 1929 to provide cover for the construction of the Lambeth Bridge across the Thames River in London.
documents in accordance with their specific requirements by requiring the submission of additional documentary requirements provided that it is reasonable and not contrary to any provision of law.
Contractor’s All Risks Insurance
The most common is the CAR Insurance, which covers general contractors and subcontractors from various risks associated with their projects, such as property losses or damages as well as loss to the contractor’s equipment and the ancillary loss to third parties (third-party liability or TPL). Loss or damage to materials on site, as well as professional fees, are also included. Coverage may include fire, flood, inundation, earthquake, landslide, burglary, bad workmanship, negligence, malicious acts and human error. Indeed, it is all encompassing. The duration of the insurance must also correspond to the duration of the contract works. There are other nonengineering insurance that may be involved, such as the professional indemnity insurance or the public liability insurance. In government infrastructure projects, bidding contractors are usually required to submit CAR Insurance. In a Non-Policy Opinion dated March 17, 2006, the Government Procurement Policy Board opined that procuring entities, in this case the Department of Public Works and Highways, may require the submission of CAR Insurance as part of the bidding documents. It pointed out that Republic Act 9184 does not prohibit procuring entities from customizing their bidding
When life asks for everything David Brooks
new york times
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’D like to offer you two models of human development. The first is what you might call The Four Kinds of Happiness. The lowest kind of happiness is material pleasure, having nice food and clothing and a nice house. Then there is achievement, the pleasure we get from earned and recognized success. Third, there is generativity, the pleasure we get from giving back to others. Finally, the highest kind of happiness is moral joy, the glowing satisfaction we get when we have surrendered ourselves to some noble cause or unconditional love.
The second model is Maslow’s famous hierarchy of needs. In this conception, we start out trying to satisfy our physical needs, like hunger or thirst. Once those are satisfied we move up to safety needs, economic and physical security. Once those are satisfied we can move up to belonging and love. Then when those are satisfied we can move up to self-esteem. And when that is satisfied we can move up to the pinnacle of development, self-actualization, which is experiencing autonomy and living in a way that expresses our authentic self.
The big difference between these two schemes is that The Four Kinds of Happiness moves from the self-transcendence individual to the relational and, finally, to the transcendent and collective. Maslow’s hierarchy of needs, on the other hand, moves from the collective to the relational and, at its peak, to the individual. In one, the pinnacle of human existence is in quieting and transcending the self; in the other, it is liberating and actualizing the self. Most religions and moral systems have aimed for self-quieting, figuring
that the great human problem is selfishness. But around the middle of the 20th century, Abraham Maslow, Carl Rogers and others aimed to liberate and enlarge the self. They brought us the self-esteem movement, humanistic psychology, and their thinking is still very influential today. For example, on Tuesday one of America’s leading marriage researchers, Eli J. Finkel, published an important book called The All-or-Nothing Marriage. It’s quite a good book, full of interesting insights on contemporary marriage. But it conceives marriage completely within the Maslow frame. In this conception, a marriage exists to support the individual selfactualization of each of the partners. In a marriage, the psychologist Otto Rank wrote, “One individual is helping the other to develop and grow, without infringing too much on the other’s personality.” You should choose the spouse who will help you elicit the best version of yourself. Spouses coach each other as each seeks to realize his or her most authentic self. “Increasingly”, Finkel writes, “Americans view this definition as a crucial component of the marital relationship.” Now I confess, this strikes me as a cold and detached conception of marriage. If you go into marriage seeking
E-mail: angara.ed@gmail.com, Facebook and Twitter: @edangara
Deductibles
One matter of concern is the subject of deductibles (also called excess amounts). These are usually determined as a fixed amount or a percentage of an insurance claim that is made the responsibility of the insured. It is an amount deductible from the claims payment to be made by the insurer. Usually, a higher deductible would allow for a lower premium. The deductible must be reasonable and not prohibitively high. Excessive deductibles could lead to a risk being effectively uninsured. The rationale for deductibles is that the policyholders will be “loss-prevention minded” if they knew that a reasonable proportion of their losses remain self-insured. Indeed, it is a mechanism to induce the insured to take adequate loss-prevention or safety measures. It represents a sharing of the risk between the insurance company and the policyholder. There are also the minor accidents that cause losses or damages. These may be covered by the deductibles since trying to recover from the insurer these small amounts would unduly increase administrative costs. Lawyer Dennis B. Funa is the current insurance commissioner. Funa was appointed by President Duterte as the new insurance commissioner in December 2016. E-mail: dennisfuna@yahoo.com.
self-actualization, you will always feel frustrated because marriage, and especially parenting, will constantly be dragging you away from the goals of self. In the Four Happiness frame, by contrast, marriage can be a school in joy. You might go into marriage in a fit of passion, but, if all works out, pretty soon you’re chopping vegetables side by side in the kitchen, chasing a naked toddler as he careens giddily down the hall after bath time, staying up nights anxiously waiting for your absent teenager, and every once in a while looking out over a picnic table at the whole crew on some summer evening, feeling a wave of gratitude sweep over you, and experiencing a joy that is greater than anything you could feel as a “self”. And it all happens precisely because the self melded into a single unit called the marriage. Your identity changed. The distinction between giving and receiving, altruism and selfishness faded away because in giving to the unit you are giving to a piece of yourself. It’s not just in marriage, but in everything, Maslow’s hierarchy of needs has always pointed toward a chilly, unsatisfying version of self-fulfillment. Most people experience their deepest sense of meaning not when they have placidly met their other needs, but when they come together in crisis.
2nd Front Page BusinessMirror
PHL may not have time, money to complete shift to federalism before 2022 T By Cai U. Ordinario
@cuo_bm
he Duterte administration’s hopes of shifting to a federal government before 2022 are getting dimmer, especially with numerous financial and political considerations that should be examined before such a drastic change is implemented, local and foreign experts said at a Philippine Institute for Development Studies (PIDS) forum on Tuesday.
PIDS President Gilberto Llanto said there is a need to gather the country’s brightest minds to come up with the best way to approach federalism because there are many forms to consider and there is no one-size-fits-all model.
“Mahirap kapag nagmamadali ka dito [It would be dangerous to hurry this process]. If you want this done in two years, maybe it’s not the way to do it. You have to be careful because there are certain risks,” Llanto told reporters.
₧30B to ₧59B
The estimated additional budget needed to run a federal government annually
The amount of work to be done is significant. National Economic and Development Authority (Neda) Undersecretary for Planning and Policy Rosemarie Edillon said that, for one, the country needs a federalism road map. Edillon noted that the road map will outline the general direction and the tasks that will make a federal government possible in the Philippines. She said this can be similar to the road map done prior to the crafting of the Asean Free Trade Agreement, which paved the way for the Asean Economic Community.
After 25 years, Edillon said the region has not fully integrated, but has already made significant strides to achieve this given the level of diversity of all Asean countries. “That is what I hope we would have—a road map to prepare us for this change, to ensure that we get the most benefits, to minimize the cost of transition. And always, not losing sight of what we want to achieve—a matatag, maginhawa at panatag na buhay para sa lahat,” Edillon stressed. PIDS senior research fellow Rosario G. Manasan said the government needs to seriously consider the structure of a federal government because it will entail public funds. Manasan said shifting to a federal form of government will involve adding to the current legislature a low of 812 new lawmakers See “PHL,” A2
Malacañang tells solons to be modest like Duterte ABELLA: “We hope our colleagues in Congress, especially our allies, can bring themselves to do the same [modest lifestyle].”
By Elijah Felice E. Rosales @alyasjah
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i v e modestly. T his was Malacañang’s directive to its allies in the House of Representatives in light of a congressman’s petition seeking traffic-violation immunity for lawmakers. In a news briefing on Tuesday, Presidential Spokesman Ernesto C. Abella said lawmakers should take a cue from President Duterte, who, he said, leads a simple life in spite of being the highest leader of the land. “The President himself continues to observe a modest lifestyle and he seeks no special treatment, whether inside or outside the Palace,” Abella said. The statement was in response to Ilocos Norte Rep. Rodolfo C. Fariñas’s petition for parliamentary immunity from minor traffic violations. Fariñas on Monday called on the Department of Transportation (DOTr) to grant legislators immunity from traffic violations, saying interruption on the road delays their attendance in sessions in the lower chamber. To this, Abella said, the “law is law” and “it should be blind to all”. “We hope our colleagues in Congress, especially our allies, can bring themselves to do the same [modest lifestyle],” Abella said. However, there was no instruction yet from Malacañang to the DOTr to junk the traffic-violation immunity petitioned by Fariñas. An instruction from Malacañang seems to be necessary, as the Metropolitan Manila Development Authority (MMDA) is keen on granting the immunity. The MMDA said since it is the request of the House, then the chairman of the MMDA would back it.
The Philippines will be hosting the search from Sports Illustrated Swimsuit Issue’s next big star for 2018 this November. The popular magazine, which has featured supermodels, celebrities and popular athletes on its cover, received over 5,000 submissions for its first-ever open casting call. The winner will be featured in next year’s issue. Among the 15 candidates are women of diverse profiles and backgrounds and include: Stephanie Rachel, a yoga instructor from Tel Aviv; Tabria Majors, a plus-size model; and Iyonna Fairbanks, a security officer from Cincinnati. Photos from S.I. Swimsuit
‘SI Swimsuit’ 2018 issue to showcase PHL sites Continued from A1
the Philippines. In a separate interview with the BusinessMirror, Tourism Secretary Wanda Corazon T. Teo, however, said she had thumbed down the bodypaint exercise for the magazine’s photo shoot here, “in deference to local feminist groups, who might be offended.” One of the most widely anticipated features of the SI Swimsuit issue are photos of the nude models covered in painstakingly painted “swimwear”. Asked about the cost of hosting the SI Swimsuit group, de Castro said, “We’re still finalizing the costs but, definitively, it will be way cheaper than the Miss Universe pageant.” The Miss Universe contest in Manila held in January was estimated to have cost about $13 million, or roughly P650 million, which was mainly shouldered by politician Chavit Singson. She also said other fashion mod-
els who were in the previous SI Swimsuit issues will also be making a trip to the Philippines for their photo shoots. The SI Swimsuit editorial board, however, has yet to announce who will be the cover of its 2018 issue. This year its cover featured fashion model and actress Kate Upton. The DOT official added, “Filipino photographers will be used for the photo shoot. But we’re still finalizing the list.” Sports Illustrated had fired the last of its staff photographers in 2015 as part of the publication’s budget cuts. For the first time in its history, the SI Swimsuit Issue management had decided to make an open casting call for its 2018 edition. On its web site, SI Swimsuit Issue editor MJ Day shares: “We decided to hold an open casting call this year because, while we cast the bulk of our models through the traditional avenues of modeling agency submissions, it is very clear to us that
there are plenty of exceptionally interesting and beautiful women in the world that exist outside of ‘industry expectations’.” She added: “By creating an opportunity for women to submit their own casting video on their own terms, we hope to find an undiscovered star.” From about 5,000 video submissions, the SI Swimsuit editorial board has narrowed down the list of lucky ladies to 15 candidates, offering diversity in looks and backgrounds. The candidates are Stefanie Rachel, Kate De Paz, Dessie Mitcheson, Tabria Majors, Steph Snyder, Allie Ayers, Camille Kostek, Kayla Fitzgerald, Michelle Vidal, Keyeriah Miles, Haley Kalil, Sarina Nowak, Iyonna Fairbanks, Shelby McLean and Olivia Jordan. The SI Swimsuit Issue broke new ground in 2016 when it featured plus-size model Ashley Graham on its cover.
www.businessmirror.com.ph
GOVT TAPS NEW RECRUITS TO HANDLE AIR TRAFFIC MANAGEMENT AT NAIA
PHOTO BY STEPHANIE TUMAMPOS
A12 Wednesday, September 20, 2017
By Recto Mercene @rectomercene
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irport authorities have recruited new air traffic controllers (ATCs) to replace some of the retirees, now reportedly in their 70s and 80s, who were rehired by the government in the past due to the lack of licensed ATCs. Some 20 newly trained ATCs were dispatched across the four airport passenger terminals of the Ninoy Aquino International Airport (Naia) this month to undergo further hands-on training, according to sources. These ramp controllers were initially trained by the Civil Aviation Authority of the Philippines (Caap) under a “special arrangement”. Naia General Manager Ed Monreal said that, as far as he knows, the trainees started work last week of August. Engr. Ric Medalla, terminal manager for Naia Terminal 3, said it is probable that the newcomers would replace the septuagenarians and one octogenarian, “because they are already retireable”. “Regular” ATCs undergo a sixmonth rigorous academic training on various subjects. The new ramp controllers were schooled for a brief period, avoiding some academic subjects that were considered not a requirement to become a ramp controller. For example, approach-radar and area-radar control are subjects that had to be studied in order to become a licensed radar air controller, according to Willy Borja, former Caap deputy manager. However, unlike regular ATCs who take a licensure examination
with the Caap, these 20 beginners were allegedly given “certificates” by the Caap to qualify as ramp controller. Of the original 20 candidates, 11 are now assigned in the four passenger terminals. Of these, two are at the Naia Terminal 1, three at the Naia Terminal 2, two at the Naia Terminal 3 and two at the Naia Terminal 4. The rest are at the “office”undergoing transition training, according to Medalla. The Naia was obliged to recruit newcomers after a few of the ramp controllers, during the past years, opted to work abroad because of the disparity in take-home pay. Many of them were pirated by Middle East airports and were offered a starting salary of P100,000, according to Manny Hortaleza, former ATC and now ramp controller at the Naia Terminal 1. Those left behind were mostly retired ATCs who were rehired by the Naia because they remain to be “licensed” ATC, which is a requirement by the International Civil Aviation Organization (Icao). Ponciano Torres, 80, is the oldest and is now ramp controller at the Naia Terminal 4. “Despite my age, I still run 3 kilometers a day and I don’t feel any bodily pain. I eat mostly vegetables and avoid eating meat,” Torres told the B usiness M irror. He said he should have retired a long time ago but there were no “licensed” replacement that the Naia could field. Ramp control became a necessity after the Naia expanded its terminals to four, out of the original one, according to Alger Ramo, See “Govt,” A2
Mile Long privatization done by mid-2018–DOF
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he Department of Finance (DOF) on Tuesday said the government is planning to privatize the Mile Long property in Makati City by the middle of 2018. This is part of the Duterte administration’s asset-privatization thrust. According to Finance Secretary Carlos G. Dominguez III, the government is planning to speed up the privatization of assets under the Duterte administration to generate additional funds for the state coffers. “Mile Long, that is the new asset that we received, which we should be privatizing by the middle of next year,” Dominguez told financial reporters. Mile Long is a 2.9-hectare property in Makati City formerly controlled by Prieto-owned Sunvar Realty Development Corp. In August President Duterte announced that revenues generated from the sale of the property will be used to fund the government’s housing projects. “Of course, there are several ways to do it, and then we have to evaluate. Do we sell it as one chunk
or separate chunks...I don’t really know yet what is the optimum for the government,” he added. As for the value of the property, the finance chief said the government still has no estimates, as it takes a bit of time to study the valuation. Around three valuation studies are to be submitted to the government. “Two external and one internal valuation,” Finance Undersecretary Grace Karen G. Singson said. Sunvar followed the ruling of the Regional Trial Court in Makati City to vacate the Mile Long properties in Makati City that is owned by the national government, but has been in the company’s possession for 35 years already. It leased the undeveloped land of the government 35 years ago upon the understanding that the lease period would expire in 2027. Sunvar added that it paid P16.8 million as advance rentals and expended millions more to build roads, buildings and infrastructure to develop the property, which is why it is so valuable now. Rea Cu