Fronpage

Evaluating Ebola as a

Ebola report

NUMBER OF EBOLA CASES AND DEATHS as of Oct. 24 Country / State / Province

A Guinea

biological weapon

D

espite Washington Post columnist Mark Thiessen’s claims that it would be easy for a group such as the Islamic State to use Ebola in a terrorist attack, using the virus as a biological warfare agent is much more difficult than it might appear at first blush. GlobalEye»C2

three-time rotary club of manila journalism awardee 2006, 2010, 2012

U.N. Media Award 2008

B Liberia

C Sierra Leone D

E

Mali

Congo

Probable/ suspected Confirmed

Cases

251

1,289

Deaths

194

710

Cases

3,700

965

Deaths

1,464

1,241

Cases

483

3,223

Deaths

273

986

Cases

0

1

Deaths

0

0

Cases

28

38

Deaths

*

*

Cases

0

4

-Texas/New York

Deaths

0

1

Spain

Cases

0

1

-Madrid

Deaths

0

0

F

G

U.S.

D

Total of confirmed and probable/suspected

904 deaths 1,540 cases 2,705 deaths 4,665 cases 1,259 deaths 3,706 cases

1 case 49 deaths 66 cases 1 death 4 cases

1 case * Exact data not available at this time

AFRICA

S PA I N

A C

UNITED STATES

B E

Countries in current outbreak Countries with past outbreaks

F

G

F

States with cases

Graphic: Staff Source: World Health Organization, Reuters

Provinces with cases

© 2014 MCT

BusinessMirror

www.businessmirror.com.ph

week ahead

ECONOMIC DATA PREVIEW

FOREIGN EXCHANGE

n Previous week: The local currency started last week posting gains from the previous week’s slide to appreciate to 44.82 against the US dollar compared to the previous week’s end-week trade at 44.91 against the dollar. The peso further appreciated on Tuesday to hit 44.747 to a dollar, the strongest that the peso has been in over a week. However, the local currency started to slide to 44.8 to a dollar on Wednesday and 44.805 versus the greenback on Thursday in anticipation of the central bank’s monetary-policy decision. The peso ended the week at 44.81 to a dollar.

n Week ahead: Investors in the foreign-exchange trading will likely follow leads from the upcoming Federal Open Market Committee on Wednesday—where the US’s central monetary authority will decide on its own policy meeting and will likely hint on the direction of the normalization of interest rates in their economy, which will likely affect that of emerging markets’, including the Philippines’.

Money-supply growth (M3) September 2014 Friday, October 31

n August’s M3: Moneysupply growth in the country—as broadly measured by M3—increased anew in August, averaging 18.5 percent See “Outlook,” A2

A broader look at today’s business

n Sunday, October 26, 2014 Vol. 10 No. 18

P25.00 nationwide | 6 sections 28 pages | 7 days a week

Aquino urged to affirm validity of SMC’s ₧35.42-B Calax bid

By Lorenz S. Marasigan

D

IVERSIFIED conglomerate San Miguel Corp. (SMC) urged President Aquino to accept its disqualified bid for the P35.42-billion Cavite-Laguna Expressway (Calax), instead of rebidding the deal.

Optimal Infrastructure Development Inc. (OIDI) said the government must come up with a streamlined process of reviewing its petition for reconsideration for the contract.

“Our pending appeal is for Malacañang to declare our bid for the Calax project as compliant, and accept our P20.1-billion bid to get this vital infrastructure going,” the infrastructure arm of the most diversified company in the Philippines said.

SMC, chaired by Eduardo Cojuangco Jr., the uncle of President Aquino, was disqualified from the auction due to a defective bid security, which was a few days short of the required cover period.

The bidding process went on without OIDI, leaving three bidders to compete for the muchcoveted deal.

The financial proposal of the firm was returned to the company during the opening of the three

PESO exchange rates n US 44.8220

compliant bidders’ offers.

Team Orion of Ayala Corp. and Aboitiz Land Inc. emerged as the front-runner during the auction, submitting P11.66 billion in premium payments to the government.

Two other parties submitted premium bids, as well, with Cala Holdings Inc. of Metro Pacific Tollways Corp. trailing behind with a hairline difference from that of Team Orion’s offer. The tollways arm of Metro Pacific Investments Corp. submitted an P11.33-billion concession payment to do the expressway project.

MTD Capital Bhd., meanwhile, proposed to do the project at a P922-million premium.

After the opening of the financial proposals, SMC officials came to the media and opened the firm’s financial proposal, which carried a P20.1-billion premium offer.

Left with no legal recourse, the diversified conglomerate

US new-home sales close to flat in Sept

signs welcome visitors to a model home as construction is under way at a housing development in Zelienople, Pennsylvania. AP/Keith Srakocic

By Josh Boak | The Associated Press

W

ASHINGTON—US sales of new homes were nearly flat in September, after the government sharply revised downward what was initially an August surge in buying.

New-home sales edged up 0.2 percent last month to a seasonally adjusted annual rate of 467,000, the Commerce Department reported on Friday. The report also revised down the August sales rate to 466,000 from 504,000.

The pace of sales for newly built homes has im-

proved a mere 1.7 percent so far this year compared to 2013. Only the South has experienced gains in buying year-to-date, while purchases have fallen in the Northeast, Midwest and West.

Housing has struggled to fully rebound since the recession ended more than five years ago. Many potential buyers lack the savings and strong credit history needed to afford a home, causing them to rent or remain in their existing houses instead of upgrading.

Construction and buyers of new homes have trickled back from the worst of the bust, but newContinued on A2

See “Calax,” A2

n japan 0.4140 n UK 71.8497 n HK 5.7783 n CHINA 7.3245 n singapore 35.1132 n australia 39.3037 n EU 56.6864 n SAUDI arabia 11.9471 Source: BSP (24 October 2014)

News BusinessMirror

A2 Sunday, October 26, 2014

Outlook...

Calax...

US new-home sales close to flat in Sept

continued from A1

from 17.9 percent just a month earlier despite the measures put in place by the central bank to siphon liquidity. The central bank attributed the rise in M3 to strong bank lending during the period. In absolute terms, the M3 aggregated to P7.14 trillion.

n September’s M3: Central bank officials have earlier reiterated that they expect the M3 levels of the

news@businessmirror.com.ph

country to still go down further toward the end of the year. In an interview this month, BSP Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo said cash supply in September showed signs of “easing.” He also said that this is expected to continue to ease given the monetary measures that the central bank have implemented in the past.

Continued from A1

home sales remain drastically below the annual rate of 700,000 during the 1990s.

Sales in the most expensive Western states declined in September, reversing some of the gains made in August. Because homes are pricier in the West, that

pushed down the median price for a new home to $259,000 from $286,800 in the prior month.

Analysts noted that the newhome sales report from the government is notoriously volatile from month to month, yet sales have basically been stuck in place for the past few years.

“There is little evidence that

continued from A1

decided to bring its battle to win the deal to Malacañang.

It has been four months since the food-to-infrastructure firm sought Malacañang’s power to overturn the Department of Public Works and Highways’ (DPWH) decision of disqualifying the firm due to the technicality.

President Aquino on Wednesday said he is inclined to reopen the bidding for the P35.4-billion deal, as this would be the better option over favoring one group to another.

However, rebidding the project puts the Public-Private Partnership (PPP) Program in a bad light.

Team Orion said it found Mr. Aquino’s statement as distasteful as the prospect of rebidding the deal despite an aboveboard auction held in June.

The tandem of Ayala Corp. and Aboitiz Land Inc. pointed out that such a move would remove the trust of potential investors in the cornerstone program of the Aquino administration.

Team Orion warned the government of losing the two big companies as partners to bridge the gap in the country’s lack of

infrastructure.

The tandem then urged the government to “respect the wellestablished process and uphold its own rules, and award the project to the highest complying bidder, so we can begin building much needed infrastructure.”

The project is a 47-kilometer thoroughfare that would start from the Manila-Cavite Expressway in Kawit, Cavite, and end at the South Luzon Expressway (Slex)-Mamplasan Interchange in Biñan, Laguna. It would consist of nine interchanges and a toll barrier before the Slex.

The third PPP project under the DPWH, the expressway is seen to decongest traffic along the Cavite-Laguna road network.

Construction of the multibillion-peso expressway is seen to start by October next year. It is expected to be completed by September 2017.

Since the infrastructure program’s inception in 2010, the government has awarded seven contracts so far.

The government hopes to finish at least eight projects before President Aquino steps down from

ppp.gov.ph

3-DAY EXTENDED FORECAST

TODAY’S WEATHER

OCTOBER 26, 2014 | SUNDAY

Intertropical Convergence Zone (ITCZ) is the result of the Northern and Southern Hemisphere tradewind convergence; widespread cloudiness, occasional thunderstorms, precipitation and moderate to strong surface winds are associated weather conditions.

24 – 33°C

23 – 32°C

NORTHEAST MONSOON AFECTING EXTREME NORTHERN LUZON. (AS OF OCTOBER 25, 5:00 AM)

TUGUEGARAO

22 – 32°C

23 – 32°C

OCT 29

WEDNESDAY

OCT 28

TUESDAY

OCT 29

WEDNESDAY

23 – 32°C

24 – 31°C

24 – 30°C

23 – 31°C

22 – 32°C

TACLOBAN

24 – 32°C

24 – 31°C

23 – 30°C

22 – 31°C

CAGAYAN DE ORO

BAGUIO CITY 15 – 23°C

TAGAYTAY CITY 21° – 28°C

23 – 32°C

22 – 31°C

24 – 30°C

24 – 30°C

24 – 32°C

23 – 32°C

24 – 33°C

23 – 32°C

24 – 33°C

24 – 33°C

24 – 33°C

BAGUIO

15 – 22°C

15 – 23°C

15 – 22°C

SBMA/ CLARK

24 – 33°C

25 – 32°C

24 – 32°C

ZAMBOANGA

TAGAYTAY

LEGAZPI

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

OCT 27

MONDAY

METRO CEBU

21 – 30°C

20 – 29°C

ILOILO/ BACOLOD 24 – 31°C

TACLOBAN CITY 24 – 32°C

PUERTO PRINCESA

23 – 30°C

23 – 31°C

SUNRISE

SUNSET

MOONSET

MOONRISE

5:49 AM

5:30 PM

7:27 PM

7:40 AM

20 – 28°C

LEGAZPI CITY 23 – 31°C

PUERTO PRINCESA CITY 24 – 31°C

3-DAY EXTENDED FORECAST

METRO DAVAO

TUGUEGARAO CITY 23 – 32°C

METRO MANILA 23 – 32°C

TUESDAY

METRO MANILA

LAOAG

SBMA/CLARK 24 – 32°C

OCT 28

Builders have yet to meaningfully ramp up construction of single-family houses.

Almost all of the 6.3-percent growth in housing starts last month came from apartments and multifamily construction, the Commerce Department reported.

Starts for single-family houses rose just 1.1 percent in September compared to the prior month.

Increased apartment construction reflects a broader shift toward renting. Many would-be buyers endured the loss of their financial savings and potentially their jobs during the recession. As wages have barely surpassed inflation during the recovery, a broad swath of Americans lack the income needed to buy a house.

The troublesome housing landscape has created a paradox: It’s ostensibly cheaper to own for the time being but more people are stuck renting, according to an analysis from the real-estate data firm Trulia. A recent report by the firm found that current mortgage rates have made it 38 percent cheaper to buy a home rather than renting, based on a seven-year time frame.

“Consumers tell us that the main obstacle to homeownership is the down payment,” said Jed Kolko, chief economist at Trulia in the report. “For those wouldbe homeowners—especially firsttimers without savings or equity from another home—a low-downpayment mortgage might be the only option.”

Federal regulators have announced plans this month to lower the down-payment requirements for some Fannie Mae and Freddie Mac programs to 3 percent from 5 percent.

ITCZ AFFECTING MINDANAO.

Northeast Monsoon locally known as “Amihan”. It affects the eastern portions of the country. It is cold and dry; characterized by widespread cloudiness with rains and showers.

LAOAG CITY 22 – 32°C

OCT 27

MONDAY

the new single-family housing market is decisively breaking out of its medium-term flat pattern,” said Joshua Shapiro, chief US economist at the forecasting firm MFR.

Some of the financial pressures on homebuyers are starting to ease, yet it’s unlikely that will do much to suddenly boost sales of new homes in the final months of this year.

Over the past two weeks, federal regulators have unveiled plans to loosen down payment requirements, and mortgage rates have tumbled below 4 percent. Along with a slowdown in price growth, these factors could eventually help usher more buyers into the realestate market.

Average rates for a 30-year mortgage fell to 3.92 percent from 3.97 percent last week, the mortgage company Freddie Mac reported. That is the lowest level since June 2013 and marks a solid decline from average rates that began the year at 4.53 percent. When rates fall, it becomes cheaper for people to borrow and makes homes more affordable.

But many potential buyers are unable to upgrade to a new home by selling their current home, as prices still have yet to exceed mortgage debt for much of the country.

More than 8 million homes are “seriously underwater,” representing 15 percent of all properties with a mortgage and roughly $1.4 trillion worth of negative equity, according to the housing data company RealtyTrac. The lasting damage from the housing bust continues to weigh on the market, preventing some homeowners from upgrading to larger houses and limiting the options of buyers.

22 – 30°C

NEW MOON HALF MOON

OCT 24

5:57 AM

23 – 30°C

24 – 31°C

OCT 30

10:48 PM

LOW TIDE

HIGH TIDE

6:06 AM

11:03 PM

MANILA BAY

- 0.08 METER

1.04 METER

23 – 30°C Partly cloudy to cloudy skies with isolated rain showers and/or thunderstorms

METRO CEBU 25 – 32°C CAGAYAN DE ORO CITY 24 – 32°C ZAMBOANGA CITY 24 – 32°C

ILOILO/ BACOLOD

Cloudy skies with rain showers and/or thunderstorms.

24 – 31°C

24 – 30°C

23 – 30°C

Partly cloudy to at times cloudy with rain showers.

Watch PANAHON.TV everyday at 5:00 AM on PTV (Channel 4).

METRO DAVAO 24 – 32°C

Weekday hourly updates: 6:00 AM on Balitaan, 7:00 AM & 8:00 AM on Good Morning Boss!, 9:00 AM, 10:00 AM, 11:00 AM, 12:00 PM, 1:00 PM on News@1, 3:00 PM, 4:30 PM, and 6:00 PM on News@6

www.panahon.tv

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@PanahonTV

EconomySunday

www.businessmirror.com.ph • Editor: Vittorio V. Vitug

BusinessMirror

Sunday, October 26, 2014 A3

Belmonte lists challenges, gains with Asean integration

T

By Jovee Marie N. dela Cruz

HE leadership of the House of Representatives assured the public that Congress would focus its efforts on institutionalizing policy reforms that would maximize gains from an emerging Asean Economic Community (AEC) in 2015.

Speaker Feliciano Belmonte Jr., during the recent House hearing on the AEC, reiterated that the country remains on track for the coming 2015 integration.

“Integrating into the AEC is not only about opening up but also pushing for good governance by addressing in particular the key institutional weaknesses faced by the citizenry at large,” Belmonte said.

The Speaker said the country would certainly face heightened scrutiny in meeting its commitments and obligations toward the whole of the Asean community and its member-states.

“There are certainly enormous tasks and benefits in the realization of the AEC vision of a single Asean market; a highly competitive economic region; an equitable economic development and full integration into the world economy,” Belmonte said.

He noted that Asean has a market of 600 million people and a combined gross domestic product of $3 tril-

lion, a situation which could make the AEC a “formidable force in the global economy.”

Belmonte said that as a region, Asean has made progress in the implementation of commitments to the AEC by its member-states.

Belmonte, however, cited that measures covering trade-customs modernization, standard and conformity, services liberalization, investments and ratification of transportation agreements have not been fully implemented.

“This is due to delays in the ratification of signed Asean-wide agreements and their alignment with national domestic laws, as well as delays in the implementation of specific initiatives,” he explained.

Belmonte said that several measures are on the priority list of the 16th Congress in preparation for the integration which include: enacting an AntitrustFair Competition law; amending the

economic provisions of the 1987 Constitution on foreign ownership and equity; amending the Foreign Investment Act; amending the Tariff and Customs Code; reforming the aviation sector through an Open-Skies policy; amending the charters of Philippine Ports Authority and Maritime Industry Authority, and amending the Cabotage law.

“Just as the center of global economic gravity is shifting toward Asia, the AEC could play a pivotal role in insuring that the rising tide could lift all the members’ boats up, enabling each and every Asean member-state to partake in broader region-wide wealth-creating activities,” he said.

Belmonte said the Executive branch and the legislature have agreed to pass these measures that will help the country and the people to maintain the Philippines’s global competitiveness and integration toward sustainable economic development.

In 2007 Asean leaders adopted the Asean Economic Blueprint at the 13th Asean Summit in Singapore to serve as a coherent master plan guiding the establishment of the AEC in 2015.

The AEC areas of cooperation include human-resources development and capacity building; recognition of professional qualifications; closer consultation on macroeconomic and financial policies; trade financing measures; enhanced transactions through e-Asean; integrating industries across the region to promote regional sourcing; and enhancing private-sector involvement for the building of the AEC.

Project development, monitoring key to successful PPP program

T

he “success” of the key infrastructure thrust of the Aquino administration lies on three core factors: planning, implementation and an agency that streamlines the whole process, a government executive revealed.

Public-Private Partnership (PPP) Center Executive Director Cosette V. Canilao made this remark during a gathering of global infrastructure fund managers and asset owners, institutional investors, infrastructure developers and other foreign government and multilateral agencies in London last week.

Canilao was one of the speakers at the Infrastructure Investor: Emerging Markets Forum 2014 in London, England. It was organized by the Private Equity International, a financial information group dedicated to the alternative asset class of private equity globally.

The two-day forum aimed at providing insights from leading figures on the goals, challenges, risks and opportunities associated with emerging market-infrastructure developments.

During the forum, Canilao discussed the government’s role in accelerating infrastructure development and creating a framework attractive to private-sector investment.

She also presented the various PPP investments opportunities in the country, PPP projects open to bidding, and the status of awarded projects.

The highlight of her talk was the sharing of the Philippines’s experience in building up the country’s key infrastructure program through

the PPP Center and major efforts in the areas of policy and process improvements, project development and structuring, capacity building, continuous dialogue with the market and public communications.

This experience has, in fact, been considered a source of learning for countries in the Asia-Pacific region developing their own PPP programs.

Recently, the royal governments of Tonga and Bhutan visited the country to gain insights and study the Filipino brand of the key infrastructure program.

“The key success factors of the Philippines PPP program are the Project Development and Monitoring Facility and active Public-Private Partnership Center facilitation during project preparation,” Canilao said.

She also emphasized the importance of a streamlined evaluation process for PPP projects.

“Another success factor is the streamlined PPP evaluation process with core Technical Working Group composed of PPP Center, the Department of Finance, National Economic and Development Authority and the Department of Environment and National Resources,” she added.

The government is currently pushing for the amendment of the build-operate-transfer law into the PPP Act to facilitate more private-sector investments in key infrastructure and development sectors and to ensure sustainability of the program. Lorenz S. Marasigan, Jonathan L. Mayuga

SundayV

Busine

A4 Sunday, October 26, 2014 • Editor: Alvin I. Dacanay

editorial

Congratulations to the Indonesian people

W

E join the rest of the world in offering felicitations, albeit belatedly, to the Indonesian people on officially raising 53-year-old Joko Widodo to their nation’s highest position last Monday. Based on authoritative reports, Widodo is eminently qualified to lead Indonesia’s 250 million people, who are spread throughout the more than 13,500 islands that make up the country.

In his record of public service, first as mayor of the small city of Solo and, later, as governor of Jakarta, Widodo exhibited sensitivity to his people’s needs by launching educational, health and livelihood programs, as well as awareness of the requirements of development by pursuing infrastructure and social projects.

He made frequent visits to his constituents in their communities to know their response to his programs. These visits became occasions for celebration and brought him closer to the people. His boyish personality made it easy for him to be an accepted member of people’s families.

Throughout his political life, he was never associated with any kind of corruption or wrongdoing.

Perhaps, the most notable thing about Widodo is his socioeconomic background. Born to a family living in the slums, he struggled to get an education to help his family get out of poverty. He worked as a furniture salesman for years prior to developing an interest in politics. He is the first person in Indonesia’s post-World War II history to be elected president, who has no link to the country’s military and elite.

During his inauguration, he made a number of commitments, including raising the Indonesian economy’s growth rate to 7 percent a year and sustaining it; abolishing a fuel subsidy that has overburdened the national budget; and stamping out corruption. He called on the Indonesian people to unite “hearts and hands” to achieve the nation’s objectives.

Before the 1980s Indonesia was the poorest among the so-called Association of Southeast Asian Nations (Asean) 5. Now Indonesia is no longer the poorest; its leaders have devoted its resources to the elimination of poverty. Today there is still deprivation in Indonesia, but grinding poverty is a thing of the past, and slums have been transformed into livable communities. Indonesia is now moving toward the top of the Asean income pyramid.

It will not be all sweetness and light for Widodo, though. Indonesia’s vibrant democracy will see to it that the other side is felt and heard. Already, some of his Cabinet nominees are being rejected by the country’s commission on appointments. Still, there is every reason to believe that Indonesia, under Widodo’s presidency, will accomplish the tasks it has set for itself.

Again, congratulations to the Indonesian people, and we wish all the best for Widodo and his presidency.

BusinessMirror A broader look at today’s business Ambassador Antonio L. Cabangon Chua Founder Publisher Editor in Chief

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W

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Private initiative on energy crisis

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Gospel

Sunday, October 26, 2014

HILE government negligence is rearing its ugly head in next summer’s anticipated energy crisis, a laudable private initiative is expected to increase supply in Metro Manila’s power grid. This initiative, called the Interruptible Load Program (ILP), is spearheaded by the Manila Electric Co. (Meralco), and supported by huge mall chain SM and other firms.

The ILP involves enlisting companies with generators to disconnect from Meralco’s power system and use those generators once the expected power crisis comes. This aims to prevent power outages that would hurt Juan de la Cruz. So far, total generating capacity of 133 megawatts has been registered into the program, which is supported by the Department of Energy (DOE) for obvious reasons.

Meralco has been enthusiastically encouraging other companies to join the program. Those that have signed up include Robinsons, Rustan’s Supermarket, Shangri-La Plaza, Waltermart, Seda hotel in Bonifacio Global City, Ayala Land and Citystate Center. Big hotels, which have their own generators, are expected to also join, as well as other government offices that have their own powergenerating equipment.

In only six months, Meralco was able to get more than what the Visayas and Mindanao got in four years, possibly because the company is invoking a para sa bayan (for the country) campaign. This year ILP has been activated several times, specifically when power plants broke down, resulting in supply deficiency. But this is not enough. Government transparency is needed.

What Meralco is doing para sa bayan needs support from the government, which it can provide by telling the country the real score, as far as the energy supply is concerned. The DOE should tell the country what to expect next year. It should announce what power plants are expected to be cut off from the power grid, which is due to get repairs next March.

Businessmen, say power-generation companies, or gencos, should

B

not be allowed to let energy prices spike again because of a power crisis.

Such a crisis would result in the socalled take-or-pay pricing scenario.

So far, the demand side of the private sector has been sacrificing a lot and helping to address the problem and, yet, the government has refused to be transparent.

The actual conditions of power plants must be revealed. Which of them would be offline starting next March? Allowing the gencos to do as they please could hurt the pocketbook of Juan de la Cruz. The question that is on top of the minds of businessmen is this: What is the government actually doing to mitigate the situation? Will it redound to the benefit of everyone without unnecessarily burdening them with high power costs? Or will it mean heavier crosses to bear for the consuming public?

Romero the father vs Romero the son

ALL is not well in the Ducati-riding Romeros. Reghis Romero II and his son Michael are said to have had a falling out, with the younger Romero being stripped of his corporate responsibilities, save for Globalport, in what is being tweeted as a tit-for-tat situation that could rival any of that found on ABS-CBN’s drama shows.

The family drama has the

ut, when the Pharisees heard that he had silenced the Sad’ducees, they came together.

And one of them, a lawyer, asked him a question, to test him.

“Teacher, which is the great commandment in the law?”

And he said to him, “You shall love the Lord

potential to be a blockbuster and, unless third-party arbitrators come in to settle it, the situation could degenerate into an all-out corporate battle that may need the services of good corporate secretaries, those unheard-of officials in corporations that could tilt the balance, in so far as majority ownership is concerned.

Big-bike lovers say the father-son breakup started innocently enough, involving a sum of money that the father ordered the son to give to a sibling, a reconciliation and a family get-together outside the country that was extended for two days, an affair that turned out to be a game of one-upmanship.

Bank trouble

THERE is something amiss in the financial world. A former bank official says there is a real bank problem that stares the Bangko Sentral ng Pilipinas in the face, and the solution lies in a financial jujitsu that needed the presence of a bank champion who could serve as a white knight to save the floundering financial empire of an old company involved in construction.

The stakes are high and the troubled bank needs to be rescued, and has to cough up pricey lots in its books to be able to save it from more trouble.

your God with all your heart and with all your soul and with all your mind.

This is the great and first commandment.

And a second is like it, You shall love your neighbor as yourself.

On these two commandments depend all the law and the prophets.”

— Matthew 22:34-40

Voices

essMirror

opinion@businessmirror.com.ph • Sunday, October 26, 2014 A5

Two types of public officials First of two parts

T Free Fire

By Teddy Locsin Jr.

HERE is this common and uninformed notion—it is not even an idea, really—that the government will finally come into its own, and politics will finally serve its proper purpose, only when politicians are gone and nonpoliticians take over.

Frankly, I cannot imagine how nonpoliticians can take over if they are not politicians. I know soldiers can. I have seen them try seven times, but without success. It is even harder to imagine, as I will show, how a democratic government is even possible, let alone how reforms can be achieved without politicians doing the job.

The reason is that politics is what a democratic government runs on.

Anything else is just business, whose closest analogies are not public service, but rather swindling and theft.

Business is crime without guts.

I will give you an example.

One day a friend of mine, Rep. Enrique “Tet” Garcia Jr. of the Second District of Bataan province, read a series of reports, to which no one paid heed: Hundreds of millions of pesos in taxes paid to banks were vanishing. No one knew where or to whom. None, of course, knew how or would admit it.

Checks were paid by taxpayers to authorized depository banks to settle their tax liabilities to, say, the Bureau of Internal Revenue (BIR) or the Bureau of Customs. You can still do it. But the money never got to the BIR or Customs. The money just vanished. Now, if I had read those

reports, I would have just fingered the Palace. But the taxes would still be lost and getting lost; the public would continue to be the loser.

Worse, taxpayers would be made to pay again. Oddly, the government didn’t try to do that. Hmmmm.

Garcia decided that this was wrong and it had to stop. Just like that: wrong, stop. He did some sleuthing. This is what he found: Syndicates befriend a bank-branch manager, an accountant, a cashier or, heck, the entire bank, and then they pop their proposal: Let’s steal tax payments.

Naturally, the only consideration for bank-branch people is whether they will get caught. Not if everyone shuts up—as far down the branch totem and as far up the pole as necessary were in on the scheme or scam.

This was a scheme involving the 4,500 bank branches of 96 banks.

A fictitious deposit account is opened in a bank branch for, say, the BIR or Customs. To activate the account, an unfunded check is deposited in it, but that check is not presented for clearance until a funded check in the same amount is paid by a taxpayer for, say, P200 million. This sum is then written by the branch people on the unfunded check.

Now you have two checks: a bouncy one without money and an authentic one for the same sum. The teller then snatches the unfunded check from the fictitious account and sticks the P200-million check in that account, which now has a real check, with real money behind it. This check is then presented for clearing to the Philippine Clearing House, which is

to say the Bangko Sentral ng Pilipinas. The check clears. The fictitious account now has cash. From that account, P200 million is allowed to be withdrawn into thin air.

You wonder: Why didn’t the BIR or Customs file tax-evasion charges against the taxpayers, whose tax payments were never received by them? The answer: Possibly because the BIR, Customs or both, under the secretary of finance, were also in on the scheme. That’s what I would say if I got that far in the investigation. Garcia said nothing, certainly none of the insinuations I have just made.

One time, about a year and a half after a tax payment that vanished, such an investigation was made. It appeared in the papers, and then vanished. For that, I would throw in the publishers and editors, who are about as corrupt a bunch of people as you will encounter out of jail. By now I would have been raising hell, but not Garcia. He delved deeper.

Diversions of this type could reach as big as P100 billion a year, he deduced. But, still, he didn’t get mad. Instead, he made this observation to the government, which never knows how much it gets until it actually receives it. It doesn’t know how much someone paid and when, so it can have a kind of running balance and know how much real money it has available at any point in time. Just like every business with an accounting department using banks knows. This is ordinary bank service.

To be concluded on Monday

“You know, in general, I don’t attend wakes of people I don’t know. I find it— and I’m speaking for myself—uncomfortable in trying to condole with people who don’t know me. [It’s like,] how can I say that I really sympathize with their loss and have some relevant discussion with them on trying to assuage… their loss at that point in time?”

—President Aquino, explaining why he wouldn’t go to the wake of slain transgender woman Jeffrey “Jennifer” Laude. He made the comment during the Foreign Correspondents of the Philippines forum on Wednesday. The first part of this quote was widely circulated on social media, which many netizens described as insensitive.

Sun shines, in the end, on son’s wedding

By Reg Henry

Pittsburgh Post-Gazette (TNS)

W

E interrupt this newspaper, with its stories of war, protests and disease, to bring you a cheerful report about the wedding of the year, according to me.

Last Saturday my son Jim Henry was married to Katie Mendelson in Martha’s Vineyard, Massachusetts, to which I say praise be the saints for this miracle. If you are a parent and understand the feeling, you may now say amen.

Part of the miracle was that young Jim was never much for marriage, a state of affairs that made his parents insecure. Did we argue too much when he was young? Well, there was an argument or two, but only about completely ridiculous things.

Perhaps, his reluctance was because he and Katie have attended so many friends’ weddings that they had devel-

oped a cake allergy. It is possible that the mere sight of a miniature bride and groom on a field of frosting gave them hives.

Or, it might be, as members of a less formal generation, they could not warm to something known as the institution of marriage, with all the romance that the word “institution” suggests.

Jim’s slowness off the mark was, in no way, due to Katie being in any way an unsuitable candidate for a life partner. He might have been as clueless as any male of his generation, but he knew in his heart that she was special—a red-haired beauty, kind and talented.

So I took a fatherly interest in this relationship lollygagging and decided to have a word. “See here, young Jim,” I said, putting him immediately at his ease, “You and Katie have a dog. In some cultures, having a dog together is tantamount

to being married, especially if your dog is named Winslow. So you might as well get some wedding gifts thrown in.” Well, of course, he had no contrary argument to such wisdom, and the question was soon popped.

My pivotal role in this wedding will be the subject of a completely ridiculous argument once Jim’s mother reads this and disputes it.

It is possible that the question of marriage was not popped, but texted or e-mailed. This is a new age, and Jim works in New York City in digital marketing-cum-social media (being myself employed in anti-social media, I have no idea what he does). Katie, a former freelance magazine writer, is an English teacher.

As most of the summer dates for weddings were taken, the day was set for October, when the beautiful island of Martha’s Vineyard would be in its autumnal raiment with the weather balmy and, in the minds of certain

parents (i.e., me), ripe for a nor’easter.

As the Mendelson and Henry families and friends gathered in battalion strength for the festivities, the weather was lovely. Everybody hoped for sun the next day, but, ominously, rain was predicted. What do weather forecasters know?

As it happens, something. The wedding day dawned in a downpour.

It wasn’t a nor’easter—just a gray, soggy dish towel of a sky impersonating a nor’easter.

As it rained and rained, plans were changed. The wedding would not be the outdoors near the vacation home of Katie’s parents, but in the big reception tent in a public space near the Gay Head Lighthouse.

I was not worried. I had been down to the tent earlier and saw a company called Dottie’s Potties installing the porta-potties, which seemed to me an omen that a humorous heaven sent.

And the band was going to be Johnny

Hoy and the Bluefish! Some things in life are too perfect to be spoiled.

Sure enough, at 4:45 p.m., when the ethereal Katie strode into the tent, the rain had gone for good. Three little flower girls, one of them Tillie, my granddaughter from Australia, showed her the way with two little boys bearing rings.

Katie’s brother John officiated, with help from her sister Sarah and Tillie’s mum, my daughter Allison.

Tillie immediately broke off and ran in little circles, only to return and look up just as the crucial words were spoken making the couple husband and wife.

At the same moment, the sun broke through the clouds and everybody said, “It’s a miracle!” Thus, did this unconventional wedding end in conventional emotion, with the rain restricted to the eyes of parents and friends.

I expect somewhere Winslow the dog barked, his work done at last. I find myself barking proudly, too.

Good marriages rest on hearing, listening

By Gina Barreca

The Hartford Courant (TNS)

H

ERE’S what I’ve learned in 23 years of marriage: Love isn’t blind, but it can be hard of hearing.

At the beginning of a relationship, you hang onto each other’s every word the way you hang onto each other’s arms: more to display affection than to satisfy a real need. You laugh at every story and gasp in delight at every exaggerated tale.

Ever y conversat ion beg ins a new pathway.

Your heart beats faster when you hear your name or an endearment murmured by your beloved. You spend hours wondering whether you should repeat how much you care or if that would be overdoing it.

Your sweetheart probably heard it the first time, but it might be worth repeating.

Then familiarity sets in and, like the foundation to a house, you settle into each other, for better and worse. (In every relationship, it’s always for better and worse: Don’t kid yourself that it’s a multiple-choice question.)

You’ve learned every pause for comic effect and quirky inflection of the wellworn funny story. You know when an exaggeration is close to a fib and when a fib is close to a lie. Your heart beats faster when you hear your name or an endearment because it often precedes a request or a rebuke. If there’s no answer when you shout, you wonder whether you should shout again or if that would be overdoing it. You realize how important it is to be heard and how even more important it is to listen. Listening can’t be overdone.

So you each listen and you both learn your cues.

In a good relationship, the dialogue always changes slightly, even when

you’re, more or less, rehearsing other conversations. If you’re lucky, you’re rarely playing to an empty house.

And, at the best of times, in the most fortunate of lives, in the most hard-won, fiercely protected and carefully cultivated relationships, there can come a time when you go beyond listening with your ears and know it in your bones.

It’s not only about finishing each other’s sentences, although that’s part of it. It’s knowing that the ground on which the foundation is built is unyielding; it’s understanding that there are pathways to each other that rest beneath both of you like power lines, buried under the earth, unseen and silent.

There’s an old joke about an aging couple. He wants to prove that his poor wife is losing her hearing. He decides to collect hard data to take to their family doctor. While she’s cooking, he starts the test. Approaching her from the doorway

without being seen, he asks, “What are we having for dinner tonight, honey?”

No response. He moves 10 feet closer and speaks louder. “What are we having for dinner tonight, honey?” Still nothing. She doesn’t even turn around. He feels bad, but she needs to admit she has a problem.

Finally, now standing no more than two feet behind her, he makes his final attempt. “WHAT ARE WE HAVING FOR DINNER TONIGHT, HONEY?” he yells.

“FOR THE THIRD TIME ALREADY,” she yells back, “WE’RE HAVING CHICKEN.” My husband has tinnitus, which used to be known as having “ringing in your ears” but is now defined as the perception of sound when no external sound is present. If you live with me, according to Michael, there is no such thing as having “no external sound present,” but we’re managing.

Sure, there are some odd conversations: On a recent holiday, he stopped to

ask for driving directions. A local woman told him to take the “roundabout.” Only Michael heard what she said as “banana boat.” She was pointing in the direction of a yellow building and he assumed that’s what she meant. “Is that the banana boat?” he asked. She kept pointing to the traffic circle, trying to override his comment. “Roundabout! Go toward the roundabout!” “Banana boat? Is that the banana boat?” Finally she just smiled and walked away.

As he told me the story, when he returned to the car, we laughed so hard we were wiping tears from our eyes. After 23 years, it turns out that conversations can become epic journeys (with some roundabouts). And the best parts are worth repeating—with bells on.

Gina Barreca is an English professor at the University of Connecticut and a feminist scholar who has written eight books.

NewsSunday

A6 Sunday, October 26, 2014 • Editor: Vittorio V. Vitug

BusinessMirror

www.businessmirror.com.ph

Bill proposing Constitutional Convention filed

A

By Jovee Marie N. dela Cruz

BILL calling for a Constitutional Convention (Concon) “to update the three-decadeold Constitution in a holistic and comprehensive manner” has been filed at the House of Representatives.

House Bill (HB) 5070, or “An Act calling for a Constitutional Convention and Appropriating Funds Thereof,” filed by Lakas Rep. Aleta C. Suarez of Quezon, has been referred to the House Committee on Constitutional Amendments, chaired by Liberal Party Rep. Mylene J. Garcia-Albano of Davao City.

HB 5070 provides that the convention delegates be composed of members to be elected from every

legislative district of the Philippines.

The measure also proposes that the election of delegates to the convention be held on the second Monday of May 2016 and shall commence session at the Plenary Hall of the House of Representatives on the first Monday of July following the election of the delegates.

The bill also provides that the amendments to, or revision of, the Constitution, as proposed by the

convention, shall be valid when ratified by a majority of the votes cast in a plebiscite, which shall be held simultaneously with the May 2019 national elections.

In filing the bill, Suarez said, “One Constitutional issue being questioned is the viability of present economic prov isions, which, experts claim, have been limiting our opportunities to realize the nation’s potential as an economic powerhouse.”

“Since the time the 1987 Constitution took effect, economic and political winds have changed, which makes some of its provisions anachronistic or even outright economically not viable,” Suarez added.

The author cited a related measure—the Resolution of Both Houses 1 written by Speaker Feliciano Belmonte Jr. seeking to relax the restrictive economic provisions of the Constitution.

The resolution, filed by Belmonte

and Sen. Ralph Recto, is eyeing to amend economic provisions on the 60-40 rule that limits foreign ownership of certain business activities in the Philippines.

The resolution will include the phrase “unless provided by law” in the foreign-ownership provision of the Constitution, particularly land ownership, public utilities, natural resources, the media and advertising industries.

“Notice that our mining industry is still on hold and has stagnated in the last four years due to the absence of a clear and consistent policy due to constitutional questions,” Suarez said.

Suarez also cited another issue that “demands a review vis-à-vis the Constitution is the proposed Bangsamoro basic law, which several constitutional experts and political analysts have already noted to have several provisions that may be in contravention to those of the 1987 Constitution.”

AFP pushes Peace Dividend program

W

ith the improving peace and order situation in the countryside, Armed Forces of the Philippines (AFP) Chief of Staff Gen. Gregorio Pio Catapang is pushing for the enactment of the so-called Peace Dividend, which will allow the military to plant high-value crops in government lands.

This will involve coordination with the Department of Environment and Natural Resources since it requires asking for portions of government land, where the AFP can plant coffee, cocoa and bamboo.

“In three years’ time of implementation with the cooperation of

military units, particularly the brigades, the AFP will start earning, therefore, benefiting the soldiers,” Catapang said.

The AFP chief added that he initiated a similar program during his tenure as Northern Luzon Command chief.

During that time, Catapang

instructed his officers and enlisted personnel to utilize unused portions of their camps and bases to plant vegetables, fruitbearing and hardwood trees.

He added that this is in line with with President Aquino’s directive to generate nonfinancial economic benefits. PNA

Phivolcs may lower Mayon alert level

T

he Philippine Institute of Volcanology and Seismology (Phivolcs) is now considering the possibility of lowering the Alert Level 3 of Mayon Volcano.

Eduardo Laguerta, Phivolcs resident volcanologist, said most of the parameters showed lesser activity of the volcano.

“The activity is going down, there have been no indications of rising magma since we have monitored minimal seismic activity. The lava flows that happened on October 12 and October 19 were very minimal.

If there is a rising magma, there should have been more earthquakes and rockfall events and the crater glow must be sustained and intensified. So now, we will be waiting for the geodetic survey to start our deliberations,” he said.

The Phivolcs has a council whose members, heads or representatives of all the agency’s departments, deliberate on their respective findings on the activities of Mayon and come out with the daily Mayon bulletin.

Laguerta said they are considering four parameters: 1) the geophysical or the seismic activity, which includes the volcanic earthquake and the rockfall events; 2) the geochemical, which pertains to the gas emission; 3) the geodetic survey, which shows the ground deformation data that determine the inflation and deflation of the volcano; and 4) the physical observation on the crater glow and other physical activities of the volcano.

Based on the October 24 bulletin, the volcano recorded four volcanic earthquakes and one rockfall event during the past 24 hours while an average of 169 tons per day of sulfur dioxide flux was registered on October 23. PNA

DENR’s Paje rallies support in fight vs illegal wildlife trade

By Jonathan L. Mayuga

E

nvironment Secretary Ramon J.P. Paje underscored the need for public support to win the war against so-called environmental criminals, who continue to engage in the illegal wildlife trade.

Paje said the illicit trade continue to push the country’s endangered species to extinction, appealing to the public to remain v igilant and help authorities stamp out the illegal activities.

He said the Department of Environment and Natural Resources (DENR)-led Philippine Operations Group on Ivory and Illegal Wildlife Trade, also known as Task Force Pogi, is stepping up operations against illegal wildlife trade.

However, he said, such effort can be more successful with the support of the people.

He said one way of supporting the campaign against illegal wildlife trade is by simply not patronizing illegal wildlife consumerism.

“The public can assist us in two ways: by being vigilant and reporting suspected illegal traders, and by refusing to buy or own wildlife pets sourced from these illegal traders. And we are grateful that there are those who have already been heeding this call,” Paje said.

“Remember that when there are no buyers, there are no sellers nor poachers. It is also easy to verify the legality of a wildlife trader’s business operation through a certification from the DENR,” he said.

Deputized by the DENR’s Bio-

diversity Management Bureau, Task Force Pogi and agents of various law-enforcement agencies apprehended two wildlife traders in separate cases involving violations of Republic Act (RA) 9147, or the Wildlife Resources Conservation and Protection Act. One of the operations conducted by the Task Force Pogi on September 23 led to the arrest of a certain Jerry Juan of Caloocan City, a tomb caretaker at the Manila North Cemetery who had converted a mausoleum into a birdbreeding center and another into a makeshift aviary.

More than 60 birds of different kinds and species, including the endangered Philippine cockatoo, were confiscated from the suspect.

Another operation mounted on October 5 resulted in the arrest of a certain Artemio Lordan of Calaca, Batangas, and the rescue of a Brahminy Kite, locally known as lawin, that he was selling along Aguinaldo Highway in Alfonso, Cavite.

The two suspects were arrested, following tips from “concerned citizens.” The confiscated birds have been turned over to the nearest wildlife rescue centers of the DENR in Cavite and in Quezon City.

Under RA 9147, mere possession of endangered wildlife species is an automatic felony punishable by a jail term of up to two years and a fine of not more than P20,000.

Involvement in illegal trade of endangered species carries a penalty of two years imprisonment and a fine of P200,000.

Atienza: Senate Blue Ribbon probe on VP Binay ‘politically motivated’

By Jovee Marie N. dela Cruz

A

PARTY-LIST lawmaker on Saturday criticized the manner of the investigation into the alleged wrongdoings of Vice President Jejomar C. Binay by a subcommittee of the Senate Blue Ribbon Committee.

Party-list Rep. Lito Atienza of Buhay also criticized the Senate investigation for being “politically motivated.”

“It is obvious that the Senate investigation being conducted against Vice President Binay is politically motivated. They are hitting the front runner of the 2016 elections,” Atienza said in a statement.

The lawmaker said the Blue Ribbon Committee inquiry being conducted by Sen. Antonio Trillanes IV and Sen. Alan Peter Cayetano is a “needless waste of resources, since the matter is already pending with the Office of the Ombudsman.”

“The Senate is not the right forum to investigate these allegations. We have institutions like the Sandiganbayan and the Ombudsman, which are the Constitutional bodies tasked to handle investigations. Ang trabaho ng Senado ay ang gumawa ng mga batas at hindi ang mag imbestiga.

Kung meron kang ebidensya, meron tayong Ombudsman na may Constitutional mandate upang magimbestiga sa mga ganitong kaso,” the lawmaker added.

“There are more important and pressing problems that need to be addressed right now, such as the mass-transport system, particularly the Metro Rail Transit,

which frequently breaks down and is in dire need of rehabilitation; the deteriorating peace and order conditions; the continuing congestion of our ports, which are affecting the prices, as well as the supply of basic commodities. Ang pinakamalaking issue na maling paggamit ng pondo ng gobyerno, ang Disbursement Acceleration Program at ang Priority Development Assistance Fund ay mistulang kinalimutan na,” Atienza said.

He, however, said he respects “The right, nay, the duty, of lawmakers to investigate pressing issues impinging on public interest in aid of legislation.”

The Senate inquiry was conducted after Binay and his son Makati Mayor Erwin “JunJun” Binay and several city councilors have been accused of plunder before the Office of the Ombudsman over the supposed overpricing of New Makati City Parking Building contract.

In a nine-page complaint-affidavit, lawyer Renato Bondal and Nicholas Enciso VI accused the two Binays and other Makati officials of overpricing the new parking building built on F. Zobel Street in 2007.

The building was constructed at a cost of P2.3 billion, but complainants said that, according to National Statistics Office data, the cost should have only been P245.6 million.

In the House of Representatives, Spea ker Feliciano Belmonte Jr. already said the lower chamber will not investigate the alleged overpricing of the Makati building.

www.businessmirror.com.ph

RegionsSunday BusinessMirror

Editor: Efleda P. Campos • Sunday, October 26, 2014 A7

Muslim region marks DPWH, tollway operators 25th year of existence brace for All Saints’ Day traffic T

T

By Lorenz S. Marasigan

HE Department of Public Works and Highways (DPWH) has prepared several measures to keep traffic flowing smoothly during the celebration of All Saints’ Day on Saturday.

Public Works Secretary Rogelio L. Singson said the department’s regional and district offices have started “vigorous highway routine maintenance activities, such as pavement, bridge, shoulder and drainage upkeep, as well as vegetation control on major roads and highways, especially those leading to cemeteries.”

Also included in the routine maintenance activities for both carriageway and roadsides being undertaken by the agency’s field units include traffic service maintenance with the provision of informative or regulatory warning signs or traffic advisories.

“These activities will ensure better and safer travel,” Singson said.

With various improvement and maintenance works under the longterm performance-based maintenance projects on national arterial roads ongoing, Singson said he directed all district engineers to coordinate with the project engineers of the Unified Project Management Office implementing the project and the contractors for the scheduling of their activities and installation of traffic advisories.

“Contractors with ongoing projects have to suspend further excavation or pavement-removal activities and shall begin with the clearing of construction barriers and the removal of idle equipment directly on site

that may obstruct and affect traffic flow,” he added.

To manage road situation, the DPWH will also activate a composite team on strategic location headed by an anchorman from the regional and district offices, who will aid the traveling public from October 30 to November 3 under the “Lakbay Alalay” program.

“We will closely coordinate with the Land Transportation Office, National Police and local governments for the harmonized operation of Lakbay Alalay, Singson added.

South Luzon tollways ready

TRADITIONALLY, on or days before November 1, All Saints’ Day, a big number of motorists troop to the expressways to go to provinces south of Metro Manila to visit memorial parks and cemeteries to honor their dead.

Skyway O&M Corp. (Somco), Manila Toll Expressway System Inc. (MATES) and Star Tollway Corp.

(STC), the operators of Skyway System, South Luzon Expressway (Slex) and Star Tollway, respectively, expect the volume of traffic to increase starting Monday and peak by Friday until November 3, on return trip to Metro Manila. Motorists are, therefore, encouraged to plan their travel beforehand to avoid the traffic rush and delays.

To ensure that traffic moves effi-

ciently and that motorists are safe, the south tollway operators will implement Oplan Undas 2014-Ligtas na Biyahe.

Somco MATES and STC will intensify its patrol operations and motorist-assistance effort; cancel days-off of their field personnel, deploy ambulant tellers in busy toll plazas; and more closely coordinate with the National Police’s Highway Patrol Group and local police in their respective areas of responsibilities to curb possible criminal activities.

Tow trucks and ambulances will be available round-the-clock at strategic locations on the Skyway System, Slex and Star Tollway to promptly respond to any emergency.

The South Tollway operators remind motorists to check their vehicles’ cooling systems, brakes, tires, oil and fuel to prevent breakdown on the road; and to observe all tollway traffic rules, especially the speed-limit rule, for their own and others’ safety.

Meanwhile, Rescue5, the emergency response unit of TV5 News and Information (News5), provided the public with relevant tips for the safe and peaceful observance of All Saints’ Day and All Souls’ Day.

Through the “Aksyon sa Undas” plugs, which airs on TV5, its news channel Aksyon TV and Radyo Singko 92.3 News FM-Rescue5 share safety tips for people before leaving the house, and when traveling to the provinces. It also reminds people of the and don’ts inside cemeteries.

“We will not just deliver news, but also provide assistance to our Kapatid who will visit cemeteries. This is part of our commitment to cause journalism,” TV5 Public Service Head Sherryl Yao said.

Aside from its public-service plugs, Rescue5 will also set up 24hour first- aid stations at the Manila North and South cemeteries from October 30 to November 1.

The team will be on alert roundthe-clock to assist those flocking to cemeteries to pay their respects to their dear departed.

People may avail themselves of the following services for free: wheelchair assistance for senior citizens; blood-pressure monitoring; drinking-water stations in partnership with Maynilad; phone calls via Smart Communications; and electronic device charging through One Meralco Foundation.

P87 million not enough for Tubbataha damage–group

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HE P87-million compensation fromtheUSgovernmentforthe damage of the Tubbataha Reef, where the minesweeper USS Guardian ran aground in January last year, is not enough, a militant group said.

Bagong Alyansang Makabayan Secretary-General Renato Reyes said the fine for the US should be 12 times the initial estimate of the Philippine government.

In a statement, Reyes said: “Comparing valuations in the 2009 grounding of the USS Port Royal in Hawaii, the petitioners peg just and reasonable compensation for the damage to Tubbataha between $16.8 million and $27 million, which is still bigger than the $2 million or P87 million that we are getting.”

He added: “Five years ago under similar circumstances, the US Navy paid the state of Hawaii a total of $15 million for restoration and settle-

ment, for damage to an Oahu reef; which, while larger than Tubbataha, has not been identified as a World Heritage Site. In our petition, we cited that Tubbataha’s biodiversity concentration is 2.3 times more than that of the Hawaii reef.”

Reyes also said that aside from fines, US Navy personnel responsible for the damage should be prosecuted under Philippine laws.

He said the US Navy officers involved are not immune from any form of accountability as the Visiting Forces Agreement (VFA) has no environmental guidelines.

“Our investigators could not even conduct face-to-face interviews with the officers responsible for the grounding of the ship. We could not even prevent the crew from leaving Philippine waters so that they could face a proper investigation,” he said.

“More important, the VFA allows

an unlimited number of US vessels to enter the Philippines and conduct an unspecified range of activities. This becomes worse under Edca [Enhanced Defense Cooperation Agreement] because these vessels will have their own bases in the country,” he added.

On Friday Foreign Secretary Albert F. del Rosario announced that the US has agreed to pay P87 million for the damage of the Tubbataha Reef, a biodiversity-rich area.

“I received correspondence just yesterday [Thursday] that the US has agreed to pay the compensation,” del Rosario said, in reponse to Sen. Loren Legarda’s question if the US government had paid the fine for the destruction of the reefs.

Legarda asked the question at the Senate hearing on the proposed Department of Foreign Affairs budget for 2015.

The Tubbataha Management Of-

fice (TMO) welcomed the news.

TMO Park Manager Angelique Songco said the amount would cover both the P58.4-million fine imposed by the government for the restoration of the marine park and the expenses of the Coast Guard during the salvage operations.

The Coast Guard is asking for P28 million for the expenses it incurred during the salvage operations, Songco said. It took at least 10 weeks of salvage operations to haul away pieces of the USS Guardian.

Tubbataha is a World Heritage Site in Palawan, and is one of the top scuba-diving destinations globally.

Earlier this year park management said the reefs have yet to fully recover from the damage. A long wait is expected before the once productive area again flourishes. (See related story on page B2-3).

Marvyn N. Benaning

HE people of the Autonomous Region in Muslim Mindanao (ARMM) are set to celebrate their silver anniversary, lining up activities that will showcase the region’s rich history and culture.

The ARMM is composed of Basilan, Lanao del Sur, Maguindanao, Sulu and Tawi-Tawi. The ARMM was created by law as an independent region in Muslim Mindanao and held its first elections in 1990.

The anniversary festivity will kick off with a pilgrimage to the country’s oldest mosque, the Sheik Makdum in Simunul, TawiTawi, on November 7. Built in the 14th century by an Arab trader, this historic site was proclaimed as one of the country’s national treasures by then- President Ferdinand Marcos.

A Moro sportsfest will also be held from November 14 to 18 at the Office of the Regional Governor Compound in Cotabato City. Participants will come from the ARMM local government units and other government agencies in the region.

On the anniversary date, November 19, the ARMM government will pay tribute to the people who had served the region.

Former regional governors will be honored during the event. Outstanding A R MM workers, who have served the

region for 25 years, will also be given citations. A cultural program, showcasing Moro history and culture, will serve as the event’s highlights. “We will continue what we have started,” ARMM Regional Governor Mujiv Hataman said, referring to his ongoing reform initiatives.

Created in 1989 under Republic Act 6734, otherwise known as the Organic Act of the ARMM, during the administration of the late President Corazon Aquino, the ARMM then was only composed of four provinces—Maguindanao, Lanao del Sur, TawiTawi and Sulu. The region was expanded with the addition of the island-province of Basilan.

Among the prominent leaders who took the realm of the ARMM are Nur Misuari, Parouk Hussin and Zaldy Ampatuan.

Appointed as ARMM acting governor by President Aquino on December 22, 2011, following the postponement of the region’s supposed elections, Hataman proved to be a catalyst of reform in the region and earned the trust of the Moro people even in a short span of time as officer in charge.

Hataman became a fullfledged regional governor when he won in the May 13, 2013, elections. “People wanted me to continue the reform I started in the ARMM,” Hataman said.

Prosecutor files estafa raps against bogus mediamen

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ITY OF SAN FERNANDO— The Office of the City Prosecutor filed estafa charges on Friday against two men who passed themselves off as staff members of People’s Television 4 (PTV-4) at the Municipal Trial Court in this city.

Chief Insp. Eugene Rebadomia, chief of the police’s Provincial Criminal Investigation and Detection Team identified the suspects as Milandro Barredo Reyes, alias Lhander Reyes, 30, of Block 2, Lot 42, Lapids Ville, Longos, Malolos City; and Patrick Cortez, 24, of 1738 Cambambangan Street, San Vicente, Apalit, Pampanga.

In the inquest resolution signed

by Prosecutor Benedict Pichay III, he explained that the charge of Usurpation of Authority or Official Function of Article 177 of Revised Penal Code (RPC) in relation to Republic Act (RA) 7306, as amended by RA 10390, could be viewed as means for respondents to execute their intention to swindle.

During the inquest proceedings, the suspects were assisted by a lawyer, but did not execute a waiver of Article 125 of the RPC and agreed that the case be submitted for resolution.

The case stemmed from the charges of usurpation of authority or official function and swindling conducted at the Information Office of the Provincial Capitol in this city that resulted in the arrest of the suspects after they allegedly conspired in

receiving marked money, composed of four pieces of P500 bills, incorporated in “boodle” money to make it appear to be worth P50,000, which the suspects were asking from the Office of Gov. Lilia Pineda through Joel P. Mapiles, officer in charge of the Information Office. The case summary states that after receiving the envelope containing the marked money, Reyes immediately put it down when he noticed the presence of boodle money.

On October 16 the suspects went to the PIO and told Mapiles that Pineda was chosen by their group as awardee of PTV-4 Lingkod Bayan Award.

However, the suspects were soliciting P50,000 from the Office of the Governor through the PIO using the name of PTV-4 in giving the award.

Reportedly, on October 20, the suspects returned to the PIO office and enticed the latter to convince Pineda to make a movie based on her life story.

Reyes allegedly claimed that he is a segment producer of PTV-4 Lingkod Bayan. He added that if Pineda agrees, she has to pay P5 million for the movie and the suspect will give 10 percent of the said amount to Mapiles as commission. Reyes allegedly told Mapiles that, if the governor will choose among Marian Rivera, Lovi Poe or Jennelyn Mercado, she has to add additional payment of P3 million and 10 percent of this amount will be allegedly given by Reyes to Mapiles. Ashley Manabat

Bicol police commander: We knew Lawmaker wants to extend implementation of agri competitiveness fund CamNorte gov’s wife not kidnapped

By Jovee Marie N. dela Cruz

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EGAZPI CITY—The Bicol police commander, Chief Supt.

Victor Deona, said that, from the very start, the police knew that Josefina Tallado had not been abducted but was missing due to a family problem.

Josefina, wife of Camarines Norte Gov. Edgar Tallado, has surfaced and claimed that she was not kidnapped but left their home to avoid her husband, who allegedly had threatened to kill her, owing to released sex pictures and video of his supposed mistress.

“I was not missing and I was not kidnapped. I voluntarily left because I knew I was no longer safe in our house,” Josefina was quoted as saying.

Deona said that, after forming Task Force Josie, police found a witness who said the wife of the governor was not missing but voluntarily left home.

Owing to the request of Governor Tallado, who called a news conference on Monday to announce that his wife was missing and he wanted to find her, Deona said he immediately formed the special investigation task group that would concentrate on finding Josie.

“If they had problems, they should have not involved the media and the National Police. They should have settled their marital problem privately and not in public,” the police official said. PNA

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O provide farmers with better postharvest services and facilities, a lawmaker recently filed a bill extending up to 2025 the implementation of the Agricultural Competitiveness Enhancement Fund (Acef) under Republic Act (RA) 9496.

Party-list Rep. Nicanor M. Briones of Agap, author of House Bill 5075, said there is an urgent need to extend the life of Acef, which will end in 2015.

The bill seeks to amend Acef and the Tariffication of Agricultural Products Act of 2007, or RA 9496.

“The bill aims to support the farmers by removing the credit as one of the means of

supporting them. I believe that if the government truly desires to uplift the lives of the farmers, credit must be replaced by grants,” Briones said.

Under the bill, only qualified farmers could avail themselves of the grant for the postharvest facilities and equipment.

The Acef fund shall consist of all duties collected from the importation of agricultural products under the Minimum Access Volume (MAV) mechanism, including unused balances and collections from repayments of loan beneficiaries, including interest, the bill said.

It added that the fund shall be automatically credited to Special Account 183 in the General Fund

of the National Treasury, and fund releases shall not be subject to any ceiling by the Department of Budget and Management (DBM).

“The fund shall continue up to 2025, after which the collection of duties from the MAV mechanism and the setting aside of the amount collected for the purpose shall be terminated but the remaining balances at the date of expiration shall continue to be used for its purpose and not reverted to the General Fund,” the measure said.

A lso, it provides that Congress shall set aside a fund for the protection of farmers against unfair trade practices, such as smuggling, dumping of agricultural products or other similar acts

of unfair trade practices.

The bill said the fund shall also be used for the increased productivity of farmers by providing the necessary support services, such as postharvest equipment and facilities, research and development, other marketing structures, provision of market information, retraining, extension services, micro, small and medium-scale enterprises in agriculture, fisheries and related courses.

Likewise, it added the fund shall be utilized for agriculture and fishery cooperatives, corporations and other entrepreneurs engaged in economic enterprises related to agriculture and fisheries and assistance and support to agricultural activities.

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www.businessmirror.com.ph

Palace lauds Lonely Planet’s recognition of PHL tourism

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he Palace welcomed on Saturday another recognition for the country’s tourism sector, after it was named “a must-see destination in 2015” by travel-guide publisher Lonely Planet.

“Ikinagagalak natin ’yan sapag­ kat talaga namang ikinararangal ng ating bansa ang pagkakaroon ng pinakamagagandang isla at magagan­ dang natural endowments, kaya naman dinarayo ito ng mga mama­ mayan mula sa iba’t-ibang panig ng mundo,” Communications Secretary Herminio B. Coloma Jr. said in a radio interview on Saturday.

“At bukod pa riyan, ang likas na pagiging mabait at pagiging hospitable ng ating mga kababayan, na kung saan ay talagang ipinararamdam sa mga bumibisita na parang hindi sila umalis sa kanilang tahanan o bayan.

At bukod pa riyan, it’s really ‘more fun in the Philippines,’” he told dzRB Radyo ng Bayan.

Lonely Planet, the largest travel-book guide publisher, named the Philippines as one of the best countries to visit in 2015.

The travel-guide publisher ranked the Philippines eighth on its yearly “Best in Travel Countries”

list, noting that the Philippines’ placement is long overdue.

Lonely Planet praised the country’s coral reefs, coastlines, and also noted the Philippines’ love of street parades, food festivals and live musical events, which gave the country a “cabaret atmosphere” almost every night.

Other countries on the Lonely Planet’s “Best in Travel” list include Singapore, Namibia, Lithuania, Nicaragua, Ireland, Republic of Congo, Serbia, Saint Lucia and Morocco.

Earlier this month the country marked yet another tourism achievement by bagging the “Destination of the Year” title at the 25th Annual TTG Travel Awards 2014 on October 3.

Lonely Planet wrote in an article published on Tuesday that “time is well overdue for the Philippines to be recognized as the next big travel destination in

Southeast Asia.”

“With more than 7,100 islands [compare that to Thailand, with a paltry 1,430], the Philippines has one of the world’s most beautiful coastlines, fringed by dive-tastic coral reefs, sprinkled with sunbathe-ready white sand, backed by swaying palm trees and dotted

with simple resorts of nipa-palm thatched huts, like Thailand used to be when the Beach Boys were still on top of the charts,” the article said.

According to the article, there were a lot of activities to do in the Philippines that were “lifechanging.”

“Try clinging to the back of a jeepney speeding through the crowded streets of Metro Manila,” the article said.

“Boarding and disembarking from these supercharged vehicles is conducted at break-neck speed, then it’s back into the traffic, horn blaring, music blasting, and

on to the next stop,” it further said.

The article also mentioned how one craze that “never goes out of fashion” in the Philippines is karaoke.

“Alone, or in company, Pinoys love to sing, and no social gathering or business meeting would be complete without a swift rendition of the latest hits on the karaoke machine,” the article said.

With only about two months left until Visit the Philippines Year (VPY) 2015 commences, the tourism department is currently pushing efforts to, in the words of Lonely Planet, “raise the profile of the archipelago.”

The department’s VPY2015 campaign is not only aimed at strengthening the country’s brand image but also aimed at helping the country meet its tourism goal of acquiring 10 million tourists by 2016.

Lonely Planet has been regarded as the world’s most successful travel publisher, printing over 120 million books in 11 different languages. It also produces a range of gift and reference titles, an awardwinning web site and magazine, and a range of digital travel products and apps.

Currently, the travel-guide company has offices in Australia, the UK, the US, India and China, with over 400 employees and 200 authors. PNA

BSP capital rules, policy ‘restrictive’ to PHL’s near-term growth–DBS T

By Bianca Cuaresma

HE recent moves of the Bangko Sentral ng Pilipinas (BSP) to tighten bank-capital rules may prove to be “restrictive” of the country’s near-term growth, on top of the tightening measures on monetary policy just this year, a regional banking giant said.

In a recent commentary, the DBS Bank said that, while it remains to be seen how much of an impact the string of policy-rate hikes this year will affect the gross domestic product (GDP) growth momentum going into next year, the minimum-capital requirement rules are probably more restrictive to growth than the policyrate hikes alone.

The central bank has imposed two recent mandates to strengthen the local banks’ capitalization. Just this month, the central bank rolled out a new framework to increase the banks’ minimum-capital requirement level by as much as four times its existing size—or up to P20 billion from the current P4.95 billion—depending on the banks’ network size.

A day after, the central bank announced that systemically important banks—or local financial institutions characterized as banks whose distress or disorderly failure would cause significant disruptions to the wider financial system and economy—are required to raise

their common equity Tier 1 (CET1), depending on their classification.

CET1 represents the highest quality of bank capital qualified under the new Basel-3 capitalization rules.

While DBS did not cite the extent to which the recent capital rules will affect the 2015 GDP growth, the bank said that a closer look at loan growth going forward “may prove crucial to have a better sense of GDP growth prospect in 2015.”

The bank also said that although the BSP may be aware of the repercussions of its moves, its actions’ effects on the Philippine growth for the next one to two years are outshadowed by the longer-term benefits of their policy normalization.

“The BSP is focused on ensuring sustainable GDP in the longer term, and, thus, pushing for GDP growth to cross the 7-percent mark once again may not be that important in the near term,” DBS Bank said.

The regional banking giant forecasts growth of the country to hit 6.4 percent this year and next year—both below the government’s target for 2014 at 6.5 percent to 7.5 percent and at 7 percent to 8 percent next year.

Current data showed that the GDP grew by 6 percent in the first half of the year.

With pleasant climate, wage ceiling, Baguio continues to attract investors

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onsidering its cool climate and standard minimum wage, Baguio City is still the ideal place in the country for investors planning to expand their businesses in the Philippines.

This was the observation of Baguio City Economic Zone (BCEZ) Administrator Rene Joey Mipa in an interview on Saturday.

Mipa said the cool climate and the daily minimum wage in Baguio City are a come-ons for investors to the 116-hectare BCEZ, which now needs to expand.

He added that Baguio is fast becoming a major business eco-

nomic zone due to the establishment of business-process outsourcing (BPO) firms.

The BCEZ authorities are considering expanding the economic zone to the other component municipalities of La Trinidad, Itogon, Sablan, Tublay and Tuba, all in Benguet.

Tuba, Tublay and Itogon are being considered as expansion sites for investments in agriculture and ecotourism.

The proposed economiczone expansion will mean employment, which will add to the 11,000 employees of BCEZ hired

from Baguio City and Benguet.

The expansion will also benefit the host municipality through the tax-sharing scheme of the government, he said.

Mipa cited an online realestate report indicating several provinces and cities in the Philippines considered as top real-estate investment hot spots in the country, namely, Cavite, Batangas, Laguna, Baguio City, Cebu City, Iloilo City, Bacolod City and Davao City.

Mipa said that these are the factors being considered by investors. PNA