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JUNE 9-15, 2014 • VOL.4 NO.41

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By Miguel Raymundo

The government and the private contractors are cashing in on the commuters’ gullibility to take any toll rate increase without raising a whimper. The privatization of public utilities only leads to huge profits for big corporations and to widening the rich-poor gap.

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HiDinG THE CoLorUM BUs FiXErs 7 6/6/14 11:36 PM

COVER STORY

Conspiracy frastructure program has turned out to be big business for the private contractors.

In short, a conspiracy exists between government and the private contractors by cashing in on the commuters’ gullibility to take any toll rate increase without raising a whimper.

Admittedly, the privatization of public utilities only leads to huge profits for big foreign and local corporations – and, effectively, widen rich-poor gap.

Other than TRB’s automatic approval of any toll rate increase every two years to allow operators a fair return on their investments, another contentious issue is the 12 percent value-added tax on toll approved by the Supreme Court which has been passed on by operators to the already financially burdened commuters.

Benchmark

Anthoni Salim

By Miguel Raymundo Yearly, the government allots billions of pesos in taxpayer’s money to build roads, but it’s the private contractors who are making a killing at public’s expense. Take the 94-km North Luzon Diversion Road, built in 1996 by the government which has fattened the pockets of its new owners, Indonesian conglomerate Salim Group.

Renamed North Luzon Expressway, the project has emerged as a cash cow of listed Metro Pacific Tollways Corp.

(MPTC), the group’s infrastructure unit in the Philippines.

Last year alone, the MPTC saw profit bursting at the seams, surging sharply, thanks – or no thanks – to the government’s benevolence in allowing with impunity the company to jack up its toll rates amid mounting protests from motorists.

Buoyed by robust revenues, the Salim firm even went to the extent of proposing to stretch its franchise to cover the lucrative Manila-Subic-Clark-Tarlac expressway under a 50-50 revenue sharing deal with the government.

Bottomline

But the proposal hardly took off the ground, shot down in no time at all by a government wizened to the profiteering ways of private contractors.

Typical of its insensitivity to public welfare, the state-run Toll Regulatory Board allows a toll road operator every two years to raise its rates without the need for the agency’s prior approval.

Cashing in on a hefty traffic volume, the MPTC’s bottomline, up by a hefty 32 percent to P2.784 billion year-on-year, only showed how the government’s in-

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Ultimately, the country’s public roads and highways should be taken over by the government to prevent corporations from increasing their profits at public’s expense.

The toll road operator’s wallowing in profits amid complaints of rising rates could have provided a benchmark, a caution for the government in tempering privatization of its public infrastructure projects.

But that appears not to be the case as more and more projects are up for grabs, ranging from toll roads to ports, airports, to the highest bidders in the private sector.

Apparently, profitability is key reason why there’s a mad rush among the country’s corporate titans to bid for the proposed P35.42 billion, 44.6-km CaviteLaguna Expressway (Calex).

Auctioned off by the Department of Public Works and Highways (DPWH), the project has attracted four qualified bidders, including powerhouse San Miguel Corp. (SMC).

Best Deal

Jockeying for the highly lucrative contract is so intense that the Salim Group has sought SMC’s disqualification for allegedly submitting a non-compliant bid.

The Indonesian group has argued that SMC’s bid did not contain a valid bid security, a bond that protects the government in case a winning bidder decides not to proceed with the project.

But SMC, which has adopted infrastructure as an integral part of its core businesses, has disputed its rival’s contention.

“We are compliant. We have a very competitive bid and we are confident we can give government the best deal for the benefit of the taxpayers and the country,” it says in a statement.

Irked over the rivals’ raising of petty issues, the conglomerate admonished them not to waste energy pulling each other down, saying “we want our countrymen to get the best price from several, not a few bidders.”

Cavite-Laguna

Other bidders expected to give competitors a run for their money are the joint venture of Ayala Corp. and Aboitiz Group

and Malaysian infrastructure firm MTD Bhd. Part of the government’s public-private partnership (PPP) program, the project starts from Kawit, Cavite, and ends at the Mamplasan interchange of the South Luzon Expressway in Biñan, Laguna.

Based on DPWH’s terms of reference, private investors will finance, design, construct, operate and maintain the expressway that will connect Cavite and Laguna directly, greatly reducing travel time between the two provinces.

The two highly industrialized and urbanized provinces are home to hundreds of international and multinational electronic, semiconductor, automotive and manufacturing companies, in addition to residential developments.

With infrastructure deemed as a key component of economic growth, the government is projected to invest about P750 Billion for projects between 2011 and 2016.

Budget

Separately, the Department of Budget and Management (DBM) is also proposing about P403 billion in infrastructure projects in 2014 to boost the country’s competitiveness, spur investments, create jobs and improve the country’s economy.

The budget outlay would result in a five percent infrastructure spending in relation to gross domestic product (GDP) ratio and increase revenue effort to 17.1 percent by the year 2016.

But somehow, the government has rationalized what it says is the essential role of the private sector as the main engine for national growth and development.

Under the PPP, the government will provide incentives to stimulate private resources for financing the construction, operation and maintenance of infrastructure projects.

To a large extent, the government is even willing, on a project basis, to protect investors from certain regulatory risks such as court orders or decisions which prevent them from adjusting tariffs to contractually agreed levels.

Risks and Regulations

Such regulatory risk insurance could take the form of make-up payments from the government to PPP investors, other guaranteed payments, and adjustments to contract terms.

The specifics of the type of protection to be offered by the government, and the mechanisms through which such protection will be offered will be part of the contract terms for each project. Such protection will only be offered for solicited projects which undergo a competitive bidding process.

But certain advocacy groups had criticized the PPP, saying the public is being held hostage by private corporations whose overriding purpose is only to amass profits as much as possible.

In effect, the responsibility to build roads is being handed over by the government to private concessionaires who are only too eager to squeeze money from the financially depressed people.

WE TAKE A STAND

6/6/14 11:36 PM

Nation Blame Game

By elCid Benedicto Beyond the controversy over the “Napolist” or the list provided by alleged brains behind the pork barrel scam, Janet Lim Napoles, on those lawmakers supposedly in cahoots with her scheme misusing their Priority Development Assistance Fund (PDAF), was the legal implication of the “exposure” of what most observers consider as a malicious document.

The Senate blue ribbon committee released the two versions of the “Napolist” immediately after it was furnished to the panel, one provided to former Sen. Panfi lo Lacson by Napoles’ husband Jimmy and the other that she herself allegedly have given to Justice Secretary Leila de Lima.

Some members of the House of Representatives who have raised howl for having been dragged into the issue have reportedly considering of fi ling a class suit against a major publication while there are those also from the Senate contemplating of taking legal action against Napoles herself and other media entities.

The blame game is just starting and as to who will carry the brunt will likely be the members

of the media who took the bait of publicizing the tons of documents coming from both camps of Napoles and principal whistleblower Benhur Luy. Some Senate observers took note of some apparent lapses on the part of blue ribbon committee chair Sen. Teofisto Guingona III in releasing the documents even before his panel could take it up in a formal hearing.

A senior Senate member admitted that such act by Guingona could constitute a libelous act, acceding to the assertions of some upper chamber observers that their colleague should have at least circumspect by having the documents fi rst entered into the records of the committee proceedings releasing it publicly.

This was on the account of the Napoles list provided by Lac-

son that was not signed by her or accompanied by any other document attesting to her ownership of it.

Based on the assertions of some, Guingona, in effect, caused the publication and distribution of information on a malicious imputation of a crime that is not even contained in an official document.

Another senator, an ally of the Aquino administration, on the other hand, came to the defense of Guingona saying that the blue ribbon chair could not be made to any criminal offense since he did not cause the publication and distribution of the information but the media entities.

“He ordered the release of the documents, being the committee chair, but he did not tell you (members of the media) to have it publicized. More importantly, he’s not the ‘author’ of what could be considered as a libelous material,” the senatorlawyer pointed out.

“Didn’t you notice? He made no utterances regarding the content of the documents, meaning lifting anything from it,” the senator further pointed out.

Such argument makes sense, in a way as this was the same issue raised by the Supreme Court in the case of Alonzo v.

Court of Appeals, saying that that what is material is that a third person has read or heard about the libelous remark, for “a man’s reputation is the estimate in which others hold him in, not the good opinion which he has of himself.”

As such, the elements of libel are: imputation of a discreditable act or condition to another; publication of the imputation, identity of the person defamed; and existence of malice.

It can be noted that senators and congressmen enjoy immunity from prosecution even if they defame or accuse anyone of any wrongdoing in their privilege speeches or any other act performed by public officers in the exercise of their functions.

No less than Senate President Franklin Drilon himself pointed out the documents should have been substantiated before it was made readily available to the public, “Dati ko nang sinasabi na tayo ay pabor na ilabas ang listahan, ngunit dapat ay sana may pruweba mula sa isang testigo, at hindi allegation lang. Yung listahan ay puro

News from Where You Stand

pangalan, walang malinaw na dokumento. Hindi naman yata tama na ilabas yang mga pangalan na walang basehan, dahil ang reputasyon ng isang tao ang nakasalalay,” Drilon said in one of the interviews.

“Katulad nga ng sinasabi ni Sen. (Francis) Chiz (Escudero) , nasa listahan siya ng isa (Napoles list provided by Lacson), pero wala siya sa iba. Ipinasa na ni (former) Sen. Lacson sa blue ribbon committee ung affidavit daw ni Napoles, pero meron pang ibang listahan. Kaya po iyan ay uulitin ko lang, kailangan may pruweba ang listahan,” he stressed, during an interview with dzMM. In another radio interview, the Senate chief reiterated the same, emphasizing that he does not stand opposed to disclosing the contents of such documents supposedly from Napoles provided that it’s backed up with proof or testimony to substantiate the allegations contained therein.

“Mag-ingat tayo sa mga listahan na walang detalye, dahil ang reputasyon ng mga tao ang nakasalalay diyan,” he said.

The documents comprised of unsigned supposed sworn affidavit of Napoles, a typewritten notes of sort and a “list” of names of senators, congressmen, government officials and alleged “agents” was accompanied by a mere cover letter signed by Lacson.

“As agreed earlier, I am hereby transmitting to your office the following documents: draft affidavit of Janet Lim Napoles; Turn to page 14

QUoTEs oF THE WEEK written in the law.”

— Makati Business Club.

drawal of its bid for the P65-billion Light Rail Transit Line 1 Cavite extension project.

ang “We were still computing at the last minute, but unfortunately, we didn’t see any upside,” —San Miguel Corp.

(SMC) president Ramon S. Ang, referring to the conglomerate’s with-

“on defending the Cabinet secretaries, that is the call of the president.”

— Sen. Antonio Trillanes IV, referring to officials linked to pork barrel scam.

“We support the view of our colleagues in the other business associations that

Lacierda rather than opening up Epira (Electric power industry reform act) now for amendments or changes, what is needed is the full implementation of its provisions as

— the Chamber of Mines of the Philippines.

“There is nothing wrong with having 11 abads in government and that does not necessarily translate to nepotism.”

— Presidential spokesman Edwin Lacierda.

“natural disasters and insuff icient supply of electricity pose major challenges to the economic development of the country’s regions this year. “ — Bangko Sentral ng Pilipinas.

“The philippine mining industry currently pays one of the highest tax rates in the world.”

“For sure, we do not have the benefit of so much time at our disposal” — Moro Islamic Libera-

tion Front (MILF) chief negotiator Mohagher Iqbal, referring to Malacanang’s delay in the submission of the draft Bangsa Moro state to Congress. “i don’t have evidence right now. But i know personalities who are actively trying to muddle the issue.”

—President Benigno Aquino III, referring to those who want to confuse the public about the pork barrel scam.

We TAKe A STAnD

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OPINION

Commentary The Suharto Dictatorship and The Salim Group E

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Taken for a ride The government may not realize it, but its privatization tack for toll roads raises more questions than answers in light of how motorists are taken for a ride.

In far north, commuters are raising hue and cry over how they are being shortchanged by a foreignbacked toll road operator, despite the prying eyes of the state-run Toll Regulatory Board (TRB).

A critical look at the numbers of Manila North Tollways Corp. (MNTC) betrays the supposedly socialized pricing policy of privatized public highways.

Pocketing profits at enormous levels smacks of callousness and corporate greed in the face of runaway inflation rate that has exacerbated a woeful life in the countryside.

Linking Manila to northern Luzon, the 94-km North Luzon Expressway typifies how contractors had turned privatization of infrastructure projects into a multi-billion pesos enterprise.

At the very least, the NLEX should serve as a benchmark, a moral compass for the government before selling off contracts to private parties.

Possible lessons range from how toll rates should be kept at a reasonable level, not beyond the means of ordinary wage earners who comprise the bulk of the daily commuters traversing through the expressway.

Not surprising why some corporate titans are locked in a bitter rivalry to corner the sale of profitdriven toll road contracts.

More than prestige, their ever-widening chase for greater wealth is also at stake.

Certainly, the proposed multi-billion pesos Cavite-Laguna Expressway would pose a challenge to those who frame its privatization, mindful of how it would affect the commuters’ daily routine – and the economic costs it would entail.

Bearing in mind the project’s multiplier effects, those at the helm of its proposed sale to the private sector must account for whatever consequence it would ensue later – adverse or favorable.

OpinYon is published weekly by Opinyon Media Services, with business office at Rm 202, ECRD Condominium, Barangka Drive cor Talumpong, Mandaluyong City.

Editorial: 214-0766 Business & Circulation: 9412189 Email: opinyon.2010@ gmail.com website: www.opinyon.com.ph DISCLAIMER Letters to the Editor and unsolicited manuscripts are welcome. The views expressed herein do not necessarily reflect those of the publisher, editors and staff of Opinyon. We reserve the right to edit articles based on our editorial standards.

RAY L. JUNIA Publisher ALFONSO LABITA Executive Editor FREDERICK FABIAN Acting Managing Editor DAVE DIWA Opinion Editor

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PUBLIC PULSE on last week’s cover story ‘nationalize power industry’ (Vol. 4 no. 40/ June 2-8, 2014)

allan reyes: Nationalization = Crony Capitalism. arnel Endrinal: Sometimes funny about people who want nationalization of industries...

They are the same people who say government is very corrupt and inefficient yet often they want government to run everything. anders Juhl Jensen: Allan Reyes, nationalization is bad, but it is not crony capitalism.

How can it be? The debate is destroyed, when we use terms wrongly. It renders the term crony capitalism meaningless, if used to cover every thing we don’t like. If we are to fight crony capitalism, we need to under-

CARLOS RAJAMIRA Creative Director JOJO VALENCIA Layout Artist ATTY. SALVADOR PANELO Ombudsman RAY L. JUNIA President ATTY. RICKY RIBO Legal Counsel

ISSN 2094-7372

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The following are excerpts from Chopping The Global Tentacles of The Suharto Oligarchy by Dr. George J. Aditjondro. This article was presented at the conference Towards Democracy in Indonesia, at the University of Auckland, 2000 April 1. The author is a sociologist and a well-known critic of the Suharto dictatorship. “...Suharto must have intentionally involved so many of his civilian and military co-workers in his family businesses, and thereby created an oligarchy, where most of his closest confidants were also tainted with various forms of corruption...”

“Even family members of Ret. General Benny Murdani, who was sacked from his post as armed forces commander in the early 1990s for criticizing the president’s children’s business appetite has three brothers involved companies close to the Suharto family. One of them, Harry Murdani, is a co-shareholder in the integrated crocodile farmpiggery-and-orchid farm of PT Sinar Culindo Perkasa on Bulan Island near Singapore, with Anthony Salim, Tommy Suharto, and Timmy Habibie. Two other brothers, Henricus Sandy Murdani and Ir. A. Mudjono Murdani, are involved in PT Kodeco Batulicin Plywood in South Kalimantan. This Indo-Ko-

rean joint venture has formed a cement factory with the Salim Group to supply power to the plywood factory. Furthermore, Mudjono Murdani is also involved in PT Cipta Teknik Abadi, a palm oil exporter which is co-owned by the family of Ret. General Yoga Sugama, former intelligence chief whose wife is related to the late Mrs. Tien Suharto.”

“Thus we see how systematically Suharto formed his oligarchy during his 32-years of tenure as Indonesia’s president, which eventually functioned as his ‘insurance’ after his political downfall. Too many heads may roll, if Suharto is taken to court, and he defi nitely knows that...”

“In the second decade of Suharto’s power, Suharto relatives and cronies began to set up overseas-based companies, where they could invest the capital accumulated domestically. The largest of these companies is the First Pacific Group, which was set up in Hong Kong by Liem Sioe Liong in 1991 but listed in Liberia. The Suharto family is represented in this group by Sudwikatmono, Suharto’s cousin and half-brother, who also represents the Suharto family interests in the Salim Group, the domestic business enterprise of Liem Sioe Liong and the Suharto family...”

“Later, after the First Pacific Group had evolved into an international conglomerate, with total assets of US$ 11.38 billion profits after taxation of US$ 427.5 million in 1998, the Suharto children themselves began to set up their overseas business empires in oil and gas marketing (Bambang & Tommy), as well as toll roads (Tutut).”

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stand precisely what is crony capitalism. The first step is to differentiate it from other phenomena. The power industry is a complex issue. A state run power sector has problems with resource utilization etc., privatization has big problems with corruption and crony capitalism, nationalization of private power companies has sinister problems concerning property rights and concealed political power struggle etc, unregulated private power sector will have huge problems with monopoly and collusion.

There is no perfect way to organize the power sector. No simple answers or solutions.

Trevor Bailey: There is a solution, and it is a mix, some parts are managed by the government and others are privately owned and operated. It is again just a matter of thinking outside the box. For example the infrastructure which carries the power from source to the delivery points is a government managed network, but the supply to the consumers is not, it can be competitive. The various sources can be privately owned as well or PPP. The idea is the suppliers buy load capacity on the network, the company’s selling to the end user buy load from the suppliers, and pay a fee to the government for using their network to deliver it. You could have numerous companies in the retail market competing for the consumer dollar, the suppliers are competing to get the retailers to buy from them, all the government does is provide the “highway” to deliver it. It is then a matter of who owns the meter box at each house, change retailer, you get your meter changed. steven Egay: I think one solution is that government should maintain control of the NGCP (not 100% just controlling share).

So that government have more leeway in power distribution instead of being controlled by some private concerns. And at the same time open up investments in power generation to as many players as possible. This way the supply availability and costs are addressed. This will work if the power distribution sector does not influence the power generation companies which is a big possibility if NGCP is privately controlled.

Trevor Bailey: Yes I visualize it like agriculture. A farmer grows his crop, he uses a government owned road to drive his truck to the wholesale market, once there he sells it to whoever retailer gives him the best price. The same works with water and telcos, it levels the playing field and generally keeps a lid on costs. anders Juhl Jensen: Trevor Bailey, in North Europe we have the Nord pool spot market. It works pretty good. Power producers will bid in according to their marginal cost, (except wind power that will just flood the market whenever the wind blows). The only problem is that you cannot get people to invest in new capital intensive power plants such as nuclear or wind farms, unless you get a subsidy, which will basically pay the capital cost (http://www.nordpoolspot.com) Trevor Bailey: You do not say what the infrastructural mix is, in the places I am familiar with the producers are a mix of private, PPP and government. Demand drives construction. Often the government is the one who builds, but once established will sell off into PPP with the private company providing the management and maintenance and the government the asset, the Private part does not perform, the government finds a new manager.

(Courtesy of Get Real Philippines Community Facebook Page)

We TAKe A STAnD

6/6/14 11:36 PM

Opinion

The Viewpoints and outlook of the well-informed

Lying

Close to a hundred and fifty lawmakers, most of whom are current, apart from local officials and so-called agents, are listed down as having robbed us blind!! And they’re all denying the charges, as expected, with some even threatening to sue back for libel, perjury, or whatever!

I

’m not sure about the date of the Four Freshmen’s performance at the Araneta Coliseum, but it was at the height of the “Hello Garci” public outrage when “lying” became a buzzword in the widespread denunciation of then President Gloria Macapagal Arroyo. Not at all convincing was her “I am sorry” public apology, which she in fact effectively negated with a subsequent insistence she had not stolen Fernando Poe’s million votes in Mindanao, and that she had been told

by God kuno to ignore the clamor for her resignation because He needed her to continue her good work for the Filipino people.

••••• I still wonder if that was a lying ploy to enable her lawyers to plead insanity so she could beat the raps. "What a smart cookie this Gloria is", I then mused. But, well, if God had really told her to carry on, shouldn't we blame Him for all the moral and economic wreckage she left behind? Obviously, we cannot because God is inherently faultless. Therefore, GMA lied, as she then often did, and this was why the entire nation was in such a foul mood, why people sought refuge at the Big Dome that evening.

••••• My fourth-row orchestra seat was right by a two-meter-wide aisle, at the other side of which sat then Chief Justice Renato C. Corona, who had obviously looked forward to dodging the public flack in a relaxing evening of musical entertainment. He had then been derisively seen as a lackey of the malevolent Gloria Arroyo.

office, with or without due process; but it seems we do not have our forefathers’ fire in the belly!!

Close to a hundred and fi fty lawmakers, most of whom are current, apart from local officials and so-called agents, are listed down as having robbed us blind!!

And they’re all denying the charges, as expected, with some even threatening to sue back for libel, perjury, or whatever! Their uniform riposte is: “We didn’t steal a single centavo! They’re all lying!” In fairness, however, a number have been wrongfully implicated, like former Sen. Jun Magsaysay, who had his righteous indignation published with official documents.

••••• What a mess!! Will someone pray tell me how, when and who will clean up the bloody shambles in a non-bloody way??? But wait! If these heroes are faces from the failed past and the floundering present, forget it!

What we need are warm bodies with new faces, new minds and new hearts revving up to install a rational justice system. Perhaps we can start with an amendment of the law punishing lying under oath. It's a curiosity, e.g., that the accused in any criminal case is required to take an oath to tell the truth, and yet he can lie with wild abandon because the same law protects him against selfincrimination. Isn't this a selfinfl icted mockery of the justice system??

••••• Less unreasonable would be China's quantum of proof: presuming heinous offenders guilty until proven innocent --- a stricture that will surely prune down all the thieving and the lying.

MUSINGS Ronald Roy ••••• Then, as in all shows locally staged by famous foreign entertainers, the time had come to thank the host country for its hospitality, smiling beautiful faces, etc., etc. "And your food", intoned a Freshman, "oh my God, this spicy, delicious vegetable dish called laeng (which sounded like lying) yes, laeng, laeng...” An interruption was unavoidable, with the audience howling and hooting, and three spotlights swirling until they focused on the chief magistrate who was now slightly crouched, his face buried in his hands.

Truly, a most embarrassing moment for the pitiful man!

••••• Let's ponder that "shame", that sense of guilt that follows after a wrongful act, is a human trait that prompts a wrongdoer to rue and change, and yet, not too many people have this attribute anymore. It therefore surprises not a few that Corona did not resign his position, and that is why he is now paying the price of vexing legal restraints and social isolation. It likewise warns us anew of power's intoxicating dangers that are so prevalent in government nowadays.

••••• Anyway, the lessons to be

learned from Corona's dire straits are: that a lackey is as much a liar as his master, and that lying with intent to deceive is as deprave as other acts of dishonesty. Would that today's so-called "public servants" could likewise learn from George Herbert (1593-1633), an English metaphysical poet and vicar of Bemerton, who once said: "Show me a liar, and I will show thee a thief". Herbert's understanding of lying and thieving can thus be expressed as an adage, viz: Liars and thieves are birds of the same feather.

••••• It's difficult to dismiss Herbert's quote as a principle of truth, an aphorism that is ubiquitously applicable in the ongoing investigations of the pork barrel scam. The humongous national scandal that now bedevils our lives compels us to retrieve our national dignity and honor by booting these scalawags out of

Like A Thief in the Night

W

hen China parked a giant oil rig in disputed waters off Vietnam, it confi rmed what Washington and regional governments have long feared: Beijing is taking a major leap in the defense of its territorial claims, testing the resolve of rattled neighbors—as well as the U.S. (Asia News online 5/8/14) ‘Like a thief in the night’, such major leap will not sit well with the rest of the neighborhood especially claimants in the disputed areas in the South and East China Sea. As an observer of events and geopolitics, I have been saying through my radio program and my blog that given the premise (as most writers say) that war is inevitable, the epicenter is here, either with Vietnam or the Philippines (or both). For the nth time since I wrote this possibility of war between Vietnam and China way back in the 90’s, that crisis like this was designed to happen and as always – it could be delayed but sadly it will happen whether we like it or not.

When Vietnam’s Prime Minister Nguyen Tan Dung

visited the Philippines during the World Economic Forum on East Asia, economic and security issues were discussed and focused on the disputes with China over contested areas.

Reports from the WEF-EA: While stressing that Vietnam “strives for peace and stability in Asia Pacific,” Dung slammed China for violating international law and failing to adhere to his country’s demands to “immediately withdraw” a drilling rig it deployed near the disputed Paracel Islands in the South China Sea. Speaking before the WEF at the Makati Shangri-la on Thursday, May 22, Dung said China’s actions “threaten peace, stability, and security and freedom of navigation and aviation” in the East Sea (South China Sea) and violate the United Nations Convention on the Law of the Sea (UNCLOS).

“Vietnam always wants peace and friendship,” Dung said in Vietnamese. “We have exercised utmost restraint and showed every... good goal and exhausted all dialogue channels to communicate with Chinese authorities of different levels by expressing protest and

WHISTLE BLOWER Erick San Juan demanding China to immediately withdraw its drilling rig and its escorting vessels from the Vietnamese waters.”

He added: “We ask China to observe the 1982 UNCLOS. However, China (has failed) to respond to Vietnam’s legitimate demand. On the contrary, it has been slandering and blaming Vietnam while continuing to use force and escalating its increasingly adventurous and serious act of intimidation and violation.”

“The entire Vietnamese nation has been protesting against China,” Dung said. He added that his government has had to manage unrest over the dispute and punish law violators.

It was reported that more than 3,000 Chinese have al-

ready returned home from Vietnam following riots by Viet citizens protesting China’s deployment of an oil rig to the Paracels.

In an earlier e-mail sent exclusively to Reuters, Dung said, “Vietnam is considering various defense options, including legal actions in accordance with international law.”

The Philippines has said it wants Vietnam, along with Malaysia, to join its historic case against China over the disputed waters, parts of which it calls the West Philippine Sea. But Malaysia immediately countered that it won’t get involved.

Of course, peaceful resolutions to such crisis had to be done fi rst but as I have warned before - confrontations like this will take place in a regular basis in the contested areas in the SCS among the claimants and China if there will be no clear discussions on the matter, and a possible regional confl ict is in the offi ng.

The fact that China deployed the rig shortly after US Pres. Barack Obama’s Asia tour “underlines Beijing’s commitment to test the resolve of Vietnam, its Asean [Association

of Southeast Asian Nations] neighbors and Washington,” wrote security scholars Ernest Bower and Gregory Poling, of the Center for Strategic and International Studies.

China has laid claim to much of the South China Sea for years. Its intent to establish control hasn’t changed, security analysts say. But under President Xi Jinping, China’s government has begun to more aggressively demonstrate its capabilities, courting more direct confl ict with neighbors—trends that have prompted deep worry in Washington. A senior State Department official on a visit to Hanoi on Thursday said the U.S. is “very concerned about any dangers.” (Vietnam Spat Represents a Chinese Leap by Brian Spegele and Vu Trong Khanh, 5/8/14) Given the escalated tensions in the South China Sea through provocations, only a miscalculation could bring the response that has been predicted long time that will spark the confl ict.

After a century since the Great War (First World War), is the world ripe for another global war?

Here we go again!!!

We TAKe A STAnD

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Food Security & Sustainability

Agriculture

FACTS On Hacienda Luisita  The farm workers have the lawful and legitimate right to the agricultural lands in Hacienda Luisita. However, they still do not own the land they till despite several regime changes and land reform programs – from Marcos to the present Aquino administration – since the Hacienda was acquired by the Jose Cojuangco, Sr. in 1958.  Farmers in Hacienda Luisita have been continually harassed by military men and members of the CojuangcoAquino private army while mainstream media ignores their situation.  It was revealed by Department of Agrarian Reform (DAR) employees that ‘land distribution’, particularly in Hacienda Luisita, is only to maintain and preserve the government’s image, and does not actually happen under CARP.  Farm workers protesting the harassment done by the Cojuangco-Aquino private army in Hacienda Luisita are often arrested with trumped up charges against them.  The harassment of the CojuangcoAquino private security on farmers in Hacienda Luisita include the bulldozing of their crops and burning of their homes.  In 2013, Typhoon Santi hit Central Luzon and severely devastated the farmers’ homes and crops. When farmers in Hacienda Luisita tried to rebuild their homes within the contested property claimed by Tarlac Development Corporation (TADECO) in Bgy. Balete, armed security guards threatened farmers and barred them from saving or repairing their homes and property. Some farm huts repaired by their owners were eventually destroyed by TADECO thugs, compelling farmers to abandon their homes out of fear.

CARP EXTENSION:

Death To Ph Farmers

T

he Comprehensive Agrarian Reform Program (CARP) was designed to implement the redistribution of agricultural lands to farmers. Circumstances of peasant workers however show that CARP is only being used as a smokescreen for corruption and ‘agrarian pork’.

CARP is only true to newspapers, radio and television reports but does not happen in reality. In fact, this was revealed by the Department of Agrarian Reform Employees Association (DAREA) who are pushing for genuine land distribution along with different militant groups in the midst of attempts by big land lords to block its full implementation, particularly in Hacienda Luisita.

Hacienda Luisita has long been the unfortunate point of reference of how CARP has failed in ending the land monopoly of big landlords and foreign corporations in the country.

Three decades of CARP only allowed farm workers, in the case of Hacienda Luisita, to experience a wide range of deceit and terror at the hands of the CojuangcoAquino haciendero clan and the Department of Agrarian Reform (DAR).

Sting Tapia of the Agrarian Reform Program Office says that big landlords are blocking the distribution of

lands to small farmers. Among them are former Land Transportation Office Chief Virginia Torres and Rep. Noel Villanueva, who is a former mayor of Concepcion, Tarlac.

Tapia disclosed that the scheme of the hacienderos is to make it appear as though the land beneficiaries have pawned their land titles for unknown reasons, hence letting them control a large portion of land. Farmers were forced to pawn or sell the lands that should have been their property due to poverty.

Last February, Catholic Bishops are calling for DAR Secretary Gil Delos Reyes’ ouster, saying that its implementation of land reform has been snail-paced.

Malacañang denied the allegation, and said that DAR records showed that land distribution was lowest only in 2009 when it gave away 59, 495 hectares. Presidential spokesperson Edwin Lacierda also emphasized that De Los Reyes is an agrarian reform advocate.

However, it is impossible to believe that a supposed agrarian reform advocate would be in favor of a pro-landlord agrarian reform law such as CARPER. It is therefore the height of hypocrisy that someone who claims himself an agrarian reform advocate would be an ally of President Aquino, who is in fact, the biggest landlord of them all.

 Farmers continue to receive death threats from TADECO’s armed thugs.

One alleged victim includes farmer Dennis dela Cruz of AMBALA (Alyansa sa mga Manggagawang Bukid sa Asyenda Luisita).  There is excessive deployment of police, military and paramilitary groups within Hacienda Luisita, allegedly to “secure” supposed farmworkerbeneficiaries. Barangay Balete, for one example, is host to a “Community Police Precinct” where SWAT teams and hundreds of police regularly converge to harass and preempt AMBALA activities.  Compiled by: Andrea Lim Source: Hacienda Luisita Campaign, Alyansa ng Magbubukid sa Gitnang Luzon (AMGL)

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OPINION Blame Game From page 3

philippine Biotech...

From page 16

Partnering with an existing fi rm or starting a social enterprise is the best way to get their life’s work out there quickly and effectively so they can make a significant difference.”

“Hybridigm consulting is committed to making sure that biotechnology like Raul Destura’s Dengue Diagnostic kit is given to an investor in the private sector, developed and sold to consumers. We want to help scientists and businessmen profit together. We want to harness Philippine biodiversity and Filipino ingenuity to serve the world, “ she adds.

Maoi advises local scientists and science entrepreneurs who want to fully realize the potential of their work for global development: partner with private fi rms or start a social enterprise.

As she is both a social and technological entrepreneur, Maoi’s advocacy is to help Filipino researchers make a significant difference in the fight against poverty and disease.

In convincing investors that funding biotechnology entrepreneurs is a worthwhile investment, she says, “Biotechnology revolves around using the characteristics of living things to make products or processes better, faster, or cheaper. It gives us new diagnostics for infec-

tious diseases; bio-fertilizer that provides better yield and better drought resistance; biofuels and new industrial processes for manufacturing.”

Maoi, as a scientist, believes biotechnology is a viable industry in the Philippines. “The Philippines is one of the most biodiverse countries in the world.

For instance, there are about 500 known species of coral on Earth — 488 can be found only in the Philippines. All this diversity means we have a lot of solutions to local problems such as schistosomiasis and global problems like cancer. Even if we’re not an economic powerhouse, we owe it fi rst to our citizens to commercialize innovations that treat their diseases. Moreover, we owe it to the world to make the best use of this biodiversity,” she shares.

She advises researchers who want to get into the biotech industry to be problem-collectors and solution-curators. She says, “They have to look at where the real pain points are in the field.

Innovations like a refrigerated backpack to deliver vaccines to far-flung areas, an accurate biosensor to detect harmful chemicals in vegetables or fish might not be as fascinating as the high-level academic research that they’re used to, but it will become an important weapon in our fight against poverty and disease.”

narration of events; and list of senators, congressmen and other personalities that she allegedly dealt with in connection with the PDAF. Please acknowledge receipt of the foregoing documents.

I hope that these documents will assist the investigation being conducted by your committee and address the clamor of our people for transparency in public service,” Lacson said in his letter to Guingona dated May 13.

Unlike in the case of committee members whom Sen. Koko Pimentel emphasized have every right to be given copies, including such unsigned documents although he pointed out that insofar as probative value is concerned, there’s none.

“It’s just a list. Let us be more

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concerned with evidence...it’s useless kung ganun lang. It has no probative value at meron na kasing draft and signed Senate blue ribbon report eh. If we feel na may additional pa, let’s start a new one, a new investigation na lang.

At that time when Pimentel made the statement prior to the submission of De Lima’s version of the “Napolist” as well as Napoles’ two sets of affidavits.

He pointed out that the Napolist, on its face, was useless as it “has no probative value at meron na kasing draft and signed Senate blue ribbon report eh. If we feel na may additional pa, let’s start a new one, a new investigation na lang.”

Also, calling Napoles to testify on the list provided by Lacson then, was viewed by Pimentel as premature, adding that it should have been accompanied by a

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sworn affidavit, which De Lima eventually provided.

Pimentel said that those mentioned in the “Napolist” can avail of a legal remedy by fi ling perjury charges, considering that Napoles, in her appearance before the Senate blue ribbon issued a flat denial regarding her involvement in the pork scam.

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Politics

What Freedom?

By Andrea Lim

The Voices of Change

In a government that mostly serves the interests of capitalists and foreign powers, this is one question we should all take the time to ponder – are we even truly free? Every June 12th, Filipinos are lulled into an even further sense of false ‘nationalism’ and ‘freedom’ when the reality of the matter is that we are still not free as a country.

Our national policies are still influenced by our former American colonizers. Our economic freedom is being sold part and parcel to China by big business taipans, and the oligarchs are keeping us under servitude to the interests of multinationals.

President Noynoy Aquino defined ‘true freedom’ as freedom from hunger, ignorance, poverty and joblessness. However, youth group Anakbayan national chairperson Vencer Crisostomo says that the number of hungry, jobless and poor Filipinos actually increased in Aquino’s first year, and more so in the succeeding ones.

The number of school drop-outs also remain in large numbers.

This shows that not only is the government’s so-called declaration of independence a façade, but it also proves that the country’s political and economic policies stay-one sided in favor of foreign powers and their local puppets.

Instead of calling for national sovereignty, we have a President who chooses only to bow down to foreign powers even if it is at the expense of the Filipino people.

US influences on our armed forces through policies and programs extends to our economy – the economic crisis being experienced by the Philippines is a result of the government’s neoliberal policies pushed by the US, such as the Visiting Forces Agreement (VFA), the Balikatan exercises, and most recently, the Enhanced Defense Cooperation Agreement (EDCA).

Meanwhile, China has already subdued the Philippines economically. Big capitalists such as Henry Sy, Lucio Tan and other foreign businessmen continue to exploit the Filipinos for cheap labor.

What’s worse is that President Aquino himself offers us to them.

Aquino’s government has steered mainstream media into distracting us from relevant issues in our society. Instead of having us focus on the corruption cases involving Budget Secretary Butch Abad and other yellow cronies, we are bombarded with news of Noynoy’s new ‘love interest’ or Kris Aquino’s summer fl ing with Quezon City Mayor Herbert Bautista.

Cuban freedom fighter Che Guevarra says that the mere act of proclaiming independence or winning an armed victory in a revolution does not mean the freedom of a country. True freedom is achieved when the “imperialistic economic domination” over people is brought to an end.

Karambola! A de M U 198 with Almonte

K

arambola!” is a more than decade old unique radio program aired from 8 to 10 am, Monday to Friday, on DWIZ, 880 Khz AM Band. It had a karambola or mixed bag of anchors, namely: Cong. Crispin “Boying” Remulla (Mountainous Southern District of Cavite), Cong. Teodoro “Teddy Boy” Locsin (Makati; President Cory Aquino’s fi rst Public Information Chief), Ed Javier (Paranaque Congressional Candidate), Atty. Dodo Dulay (MMDA and COMELEC Chairman Ben Abalos’ defense attorney), Cong.

Jonathan de la Cruz, Cong.

“Sonny” Escudero (Sorsogon; Marcos and Ramos; Agriculture Secretary) and Alvin Matthew Palmes Capino.

A week ago, Sunday, June 1, 2014, Alvin Capino was laid to rest at the Loyola Memorial Park along Santos Ave in Sucat, Paranaque.

He was 64 years old when he died at his home in B F Homes on Thursday night, May 29. He died of cancer of the kidney. It was “Strike Three” for him. It was his third bout in two years. He was also diabetic and he did not like to drive and go out at night.

That is why, we did not see too much of him in our batch and class reunions. “We” are Ateneo

de Manila University’s Batch 198.

198 is the sum total of 62 + 66 + 70, ie. Grade School ’62, High School ’66 and College ’70. Alvin belonged to College ’70 and was an AB Political Science Major.

After College, he worked with Lexington International, with Press Secretary Francisco “Kit” Tatad at the Department of Public Info or Malacanang Press Office, Pilipinas Shell and Mobile Oil Philippines. He wrote for the Observer, The Independent, The Phil Free Press, The Daily Globe and Today. He was an Anchor and Commentator for DZRH, DZRV and DWWW. Over a decade, he rose to Vice Chairman at Tony Zorilla and partners. He was a member of the Board of Directors of the BCDA from 2001 to 2010.

In four days our Batch 198 lost three members – Alvin on Thursday, May 29, Lito Villarama on Saturday, May 31 and Jed Natividad, BS Chemistry ’70, on Sunday, June 1. Thirteen years ago, in October – November 2001, I lost my best friend and classmate from Grade One to Third Year College, Gerardo “Gerry” Jaminola Katigbak Esguerra, to a stroke (during his son’s wedding) after a long bout also with cancer of the kidney.

Last Thursday, our Batch

YESTERDAY, TODAY & TOMORROW Linggoy Alcuaz 198 organized and sponsored a forum with former General and FVR’s NSA Secretary Jose Almonte as the Resource Person.

His topic ranged from Nation Building to the Enhanced Defense Cooperation Agreement (EDCA) to the Philippine China confl ict in the South China Sea/ West Philippine Sea. He fleshed out his principles and theory on Nation Building by taking us through FVR’s journey of running for the Presidency in 1992, winning, winning over the opposition and running the government for six years.

Then, we jumped to the present and he put us through a crash course on China and our problems with them in the South China Sea/ West Philippine Sea. The day before, on Wednesday, June 4, at the Fernandina Media Forum at the Club Filipi-

no, our main topic was Women’s Issues including Marital Rape, Child Rape, Profi le of a Rapist, Abused Women and Abusive Men. Aside from resource persons Atty. Rowena “Bing” Guanzon and Women Involved in Nation Building Chairperson Emeritus Baby del Mundo, we also had the second rape complainant against actor Vhong Navarro, Miss Bikini Contestant, Roxanne Cabanero, and her lawyer, Atty. Mendoza.

However, our resident fortune teller, Danny Atienza, also dropped by because he had some important and pressing matters to share with us. In general, he predicted impending doom. According to him, the government is bankrupt. The last two years of the Aquino Administration will continue to be a downward spiral.

However, the next President will uplift the country in 2016, 2017 and 2018. He hinted that Vice President Jejomar “Jojo” C. Binay is sick and that the next President will be a woman. Late last year, he privately told me that it would be Senator Grace Poe L. The removal of Gov. E. R. Ejercito was just the beginning and a sample of things to come.

Many more would follow. However, E. R. would be able to make a comeback. The fi ling of plunder We TAKe A STAnD

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cases against the three senators, JPE, Jinggoy and Bong was imminent. Senator Revilla is sure to be convicted and jailed. Senator Enrile will get away. Senator Estrada’s future is an uncertainty.

The disqualification of Mayor Joseph Estrada will proceed and is imminent with a condition, “kung kaya”. Even if Erap is removed, the people will support him. He can even run for President with massive People’s support. DILG Secretary and Liberal Party Presidentiable Mar Araneta Roxas is a sure loser. Noynoy Aquino’s problems with Corruption, Pork, DAP and Malampaya Scandals as well as our confl ict with China will continue and grow even bigger.

By the way, this week’s calendar is loaded. Tomorrow, Tuesday, June 10, the Supreme Court will deliberate and vote on the constitutionality of the DAP. My guess is that they will declare it unconstitutional but prospectively.

On Thursday, June 12, an anti Pork, PDAF, DAP, Malampaya, etc ... protest rally at the Bonifacio Shrine near the Manila City Hall, will try to repeat the One million March August 26, 2013 Rally at the Luneta.

Where will these take us? To be continued...

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GameChanger

SECTIONS NATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 OPINION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 HEALTH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 AGRICULTURE . . . . . . . . . . . . . . . . . . . . . . . 10 FOREIGN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

MAOI ARROYO

Philippine Biotech Leader & Entrepreneur

M

ulti-awarded scientist-entrepreneur and Asian Institute of Management professor Ma. Antonia Odelia “Maoi” G. Arroyo is the CEO of Hybridigm Consulting, considered the first biotechnology consulting firm in the Philippines.

Hybridigm Consulting is a firm that helps biotech innovators commercialize their technologies. Maoi, as she is known to family and friends, established Hybridigm to train up and coming biotech entrepreneurs, to help them attract key investors and to successfully commercialize their business ventures. Hybridigm works with the government in developing R&D policies and legislation in order to promote the growth of the biotechnology industry. Maoi explains, “Some people dream of building a company, I dream of building an industry – one start-up at a time. Pioneering a biotech industry in an emerging market such as the Philippines is a long and arduous road.”

Her company enables clients to commercialize technology, partnering with them on the journey from science to enterprise. The fi rm’s current client roster includes private equity investors in the UK, startup biotech companies in Shanghai and Taiwan, as well as a long list of existing local biotech entrepreneurs.

She is a fi rm advocate of Filipino ingenuity and the unique natural advantage of the Philippines in terms of biodiversity. She knows that the problem lies in the lack of development for these resources thus making this her life work.

When asked if science and technology play enough of a role in development, and on how scientists can make their work more relevant to the country’s development needs, Maoi says, “I think scientists and engineers play a key role in development. However, to fully realize the potential of their technologies, they have to partner with the strategic mindset and rigorous implementation of business.

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