BusinessMirror July 7, 2015

GREECE BRACING FOR EURO SHOWDOWN AFTER ‘NO’ VOTE

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A BANK employee distributes tag queue positions to elderly people to enter into the bank to withdraw a maximum of â‚Ź120 ($134) for the week in Athens, on Monday. Greece’s Finance Minister Yanis Varoufakis has resigned following Sunday’s referendum in which the majority of voters said “Noâ€? to more austerity measures in exchange for another financial bailout. AP/EMILIO MORENATTI

REECE voted against yielding to further austerity demanded by creditors, leaving Europe’s leaders to determine if the nation can remain in the euro zone.

Sixty-one percent of voters backed Prime Minister Alexis Tsipras’s rejection of further spending cuts and tax increases in an unprecedented referendum that’s also taken the country to the brink of financial collapse. Outspoken Greek Finance Minister Yanis Varoufakis resigned after the Sunday vote, giving Greece a chance to lower the temperature on its often confrontational interactions with other European countries.

As the euro fell to a four-week low in

Asian trading and Tsipras’s supporters filled Athens’s central Syntagma Square waving Greek flags on Sunday night, German Chancellor Angela Merkel and French President François Hollande called for an emergency leaders’ summit on Tuesday. The pair will first meet on Monday in Paris at 6:30 p.m. to discuss Europe’s next move.

The result turns the tables on Merkel and Greece’s other creditors, who must now decide if a financial rescue of the region’s most-indebted country is still possible. It significantly raises the chances of a Greek exit from the single currency, as the country’s banks run out of cash and its economy staggers toward all-out collapse.

“The bill for keeping Greece in the euro area—without commitment to reform—has just risen disproportionately,� said Mujtaba Rahman, the head of the Europe practice at political consultancy Eurasia Group. “The hawks in the euro group will win the debate that aid should be given to the country to leave the currency bloc.�

Back to talks

THE euro declined in Asian trading against all 16 major peers, and was down 0.4 percent versus the dollar as of 8:02 a.m. in Berlin. US treasuries and the yen advanced, as investors sought safer harbors after the vote.

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BusinessMirror

THREEďšşTIME ROTARY CLUB OF MANILA JOURNALISM AWARDEE 2006, 2010, 2012

U.N. MEDIA AWARD 2008

A broader look at today’s business Saturday 18, July 20147,Vol.2015 10 No.Vol. 40 10 No. 271 Tuesday,

www.businessmirror.com.ph

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‘POWERFULBOOSTS’ SUCHAS PPPsANDHIGHERGOV’TSPENDINGTOENSUREGROWTHOFATLEAST 7%

DBCC stands pat on 2015 growth goal INSIDE

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HE interagency Development Budget Coordination Committee (DBCC) hinted on Monday of “powerful boosts,� helping assure growth averaging at least 7 percent this year in terms of gross domestic product.

SEARCHING FOR A HOME D

Life

Children of light

EAR Lord, the Blessed Trinity is our origin, our final destination and our reward; the One we belong to, and in Whom alone our being will find the fulfillment it longs for. But the greatness of our present dignity and of the final destiny that comes to us from our baptism has also its demands. Our daily behavior has to be in keeping with our being “children of light� for “God is light� (1 John 1:5).

Everything in us: Our thoughts, attitudes, words and actions should form a living doxology—a continuous hymn of praise to the Father, the Son and the Holy Spirit. Amen.

EXPLORING GOD’S WORD, FR. SAL PUTZU, SDB AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

ROYAL FAMILY CHRISTENS PRINCESS CHARLOTTE ELIZABETH DIANA ÂťD2

BusinessMirror

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

Tuesday, July 7, 2015

D1

Setting your priorities when searching for a home B� A����� B���� Chicago Tribune

Some buyers will sacrifice an enormous master bedroom, for example, not needing an en suite bath. “I have clients who really want to be in a neighborhood and are really willing to compromise on space to be there,� he said. Others might want the neighborhood but prioritize other things like space, leaving them open to seeing other spots. “Oftentimes people, if they’re open to that, they’re pleasantly surprised at things they might find,� he said.

Consider how much you want the neighborhood versus other factors, he advised. He also suggests visiting potential locations without looking at property. Take the commute. Visit shops. “Breathe it in,� he said. “Go for a run. Get a glass of wine.� Lynnette Bruno, vice president of communications for online real-estate site Trulia, is seven months into a house hunt—and she’s betting that a long search will deliver one of two specific San Francisco neighborhoods. “The neighborhoods are super important to me, because I like to have things to do on the weekends,� she said.

Location is a must. Her other must-haves— garage and at least a speck of a yard—spur from living in a place that has a garage six floors below.

Right now, getting her car takes about 10 minutes, often while juggling packages. “I would have a better chance securing a house if I wanted to live in some other neighborhood,� she said. But she is willing to wait.

M

OST people start a house hunt with a wish list.

Must-haves might be a garage, a yard, plenty of natural light or simply, or not so simply, a specific neighborhood. But anyone who has gone to a house showing knows that as soon as you step in that door, priorities move up or down. One thing is certain—they rarely all exist in one magical, perfect place. “The reality is that whether it’s $500,000, $5 million or $15 million, I’ve never seen a purchase without a compromise,� said Matthew Pucker, a New York-based associate real-estate broker with The Corcoran Group.

But how do you decide which factors matter most? Do you want your dream neighborhood, even if it means a bit less space? Or perhaps that third bedroom is a must, and you are willing to browse a few different areas. Navigating these needs are an imperative part of what buyers and real-estate agents encounter.

Pucker said he advises clients to first list their need-to-haves, their want-to-haves and their can’thaves. For example, a pet, if you have one, might be a need-to-have. But if you’re just thinking about becoming a pet owner, a pet-friendly locale might be a want-to-have. Can’t-haves might be a walk-up apartment, for example. “That’s a daily conversation,� he said.

MAKING for a fabulous wall display while saving on precious space is this wallmounted wine rack. PHOTOS FROM POTTERY BARN PHILIPPINES

TALL and slender, the Ashby Dresser is a beautiful addition to any compact bedrooms.

TURNING YOUR HOME INTO A HAVEN A YEAR after setting up shop in the Philippines in partnership with Store Specialists Inc., Pottery Barn has become a favorite destination among domestic divas and everybody else with a keen eye—and mind— toward transforming their home into a haven and keeping it that way.

As always, the two-story Pottery Barn flagship store in Bonifacio High Street’s Central Square is replete with furniture and furnishings that will make one delight in staying in over the weekend, perhaps even throwing the occasional intimate party for friends. Here are some selections.

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CREATE a photo gallery in your home with these frames.

PERFECT for home entertaining is the Great White Collection of dinnerware and serveware.

THE Cameron Sofa is must-have for cozy and comfy downtimes at home.

THE perfect reason to stay home on a Friday night? How about the Branford Bedroom Collection.

LIFE

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ROYAL FAMILY D2

Show BusinessMirror

Tuesday, July 7, 2015

www.businessmirror.com.ph

Royal family christens Princess Charlotte Elizabeth Diana

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HE royal family and hundreds of fans crowded Saint Mary Magdalene Church in Sandringham, England, on Sunday to celebrate the christening of Princess Charlotte Elizabeth Diana.

Fans held flags and cheered as Prince William and the former Kate Middleton, Duchess of Cambridge, walked to the church with Charlotte and her older brother, Prince George. Nine-week-old Charlotte, who bears both her grandmother and great-grandmother’s names, was taken to her christening in a vintage Millson pram, previously used for Prince Edward and Prince Andrew. She wore a christening robe of fine Honiton lace lined with white satin, made by the queen’s dressmaker, Kensington Palace said on its official Twitter account. “It seems that different forms of ambition are hard-wired into almost all of us,� the Archbishop of Canterbury Justin Welby said in his homily.

“At a baptism our ambitions are rightly turned into hopes and prayers for the child, today for Princess Charlotte. Everyone wants something for their children. At our best we seek beauty, not necessarily of form, but of life.�

Ahead of the christening, the palace announced a list of guests, who included the queen; the Duke of Edinburgh; the Duke and Duchess of Cornwall; and Kate’s parents, Michael and Carole; and two siblings, Pippa and James Middleton. The palace also announced Charlotte’s five godparents: Kate’s cousin Adam Middleton, William’s cousin Lady Laura Fellowes, Kate’s friend Sophie Carter and William’s friends Thomas van Straubenzee and James Meade.

After Charlotte was born in May, royal gun salutes were fired simultaneously across London.

Soldiers on horseback rode out in procession and 41 volleys rang out in Hyde Park along with a 62gun salute at the Tower of London. The princess is fourth in line to the British throne, after her grandfather, Prince Charles; her father; and then her older brother. n

The Cabinet-level DBCC bared its optimism of sustained, withintarget local-output growth this year no matter the sub-optimal expansion of only 5.2 percent in the first three months earlier to declare the 7-percent growth goal as too ambitious even for the Philippines and its $272-billion economic engine.  In a response to the B�������M�����, Bangko Sentral ng Pilipinas (BSP) Deputy Governor for the

SWEET PLANTADO-TIONGSON

Today’s Horoscope

By Eugenia Last

CELEBRITIES BORN ON THIS IS DA DAY: Michelle

Kwan, 35; Berenice Bejo, 39; Shelley Duvall, 66; Ringo Starr, 75.

HAPPY BIRTHDAY: DA Take a reserved approach DAY:

to situations that can influence your reputation or status. Showing too much emotion will work against you, but being secretive and acting quietly and intuitively will help you skillfully flush out any problematic situations you face. Show control and patience when handling others, and you will come out on top. Your numbers are 4, 10, 21, 26, 29, 34, 47.

musical theater teacher having passed on her skills to the students of the University of Asia and the Pacific and, currently, the Meridian International College in McKinley.

Sweet has kept the ball rolling career-wise since 2013 as she kicked it off playing the wicked stepmom in Cinderella The Musical at the Newport Performing Arts Theater where she received rave reviews.

In the same year she was nominated at the 2013 Gawad Buhay for Best Musical Director for her notable work in 9Works Theatricals’s Grease. Continuing her winning musical streak, she nabbed the award for the Best Ensemble Performance and Best Children’s Musical for Trumpets’s The Blue Bird of Happiness. In 2014 she took on the job of musical director for 9Works

ARIES (March 21-April 19): Look over contracts, financial papers or medical concerns. Knowing what you are up against will make it easier for you to make decisions about what you can and cannot do. A move will be hectic but rewarding. Romance is in the stars. HHH

CANCER (June 21-July 22): Don’t be afraid to be different. Your unique approach to work, life and dealing with others will bring good results. A disciplined attitude will help where self-improvement projects are concerned. Start a fitness and nutritional regimen. HHHHH

TAURUS (April 20-May 20): Short trips will give you insight into future trends and how you can use your skills and talents wisely to get ahead. Don’t let anyone control your life. Responsibilities will weigh you down. Do your best to get in shape. HHHH

LEO (July 23-Aug. 22): Take action and make things happen. Call people who can assist you or who owe you favors, and initiate the changes that need to be made to get what you want. Make personal as well as professional improvements. HHH

GEMINI (May 21-June 20): Pick and choose wisely. Don’t feel obligated to fight someone else’s battles. Make changes that will improve your personal and domestic life. A professional or personal move will bring new opportunities and help you leave the past behind. HH

VIRGO (Aug. 23-Sept. 22): An investment that appears too good to be true should be considered carefully. Practical applications will bring the best results. Use discipline when dealing with the temptation to overspend. Add to your assets wisely by choosing long-term proposals. HHH

SPECIAL REPORT

That said, she trusts in the process of Director Maribel Legarda, along with the entire cast. She is optimistic that she will be able to put in a different twist to the character of Mary Jane.

Aside from theater, Sweet celebrated the 30th anniversary of top vocal ensemble, The CompanY, on June 13 at The Theater at Solaire.

Catch Sweet Plantado showcase her incredible voice in Rak of Aegis’ rerun as she is joined by the other new powerhouse cast members such as Renz Verano (Kiel), Lorenz Martinez (Kiel), Lani Ligot (Mercy), Benj Manalo (Tolits), Via Antonio, Teetin Villanueva, Roi Calilong, and Raflesia Bravo (ensemble).

Rak of Aegis runs until August 16 from Tuesdays to Sundays at the Peta Theater Center. For tickets, contact Ticket World (891-9999, ticketworld.com.ph). ticketworld.com.ph

Theatricals’s La Cage Aux Folles, which received positive reviews from critics.

For 2015 Sweet gears up for another adventure as she takes on the role of Kapitana Mary Jane of the beloved Barangay Venizia in Rak of Aegis.

Having watched it twice, Sweet is a selfproclaimed fan of the production. “Nakita ko talaga ang sarili ko sa production,� she says, adding that she had been waiting for the opportunity to be part of the Rak family. When she finally got the call to audition, she was ecstatic about taking on the challenge.

Originally aspiring for the role of Mercy (Aileen’s mother), Sweet was surprised that she had managed to grab the role of the strong Kapitana. “I feel like MJ’s voice should be bigger and alto, and I’m a soprano,� Sweet says when asked about the challenges of the role.

LIBRA (Sept. 23-Oct. 22): You can make positive changes that will alter your relationships if you are open about what you want to see unfold. Don’t let anyone bully you or lead you astray. Choose what you want, not what makes others happy. HHH

CAPRICORN (Dec. 22-Jan. 19): Talks may not resolve matters, but they will help you get a better view of what is going on and who you should avoid. Don’t get upset or show your feelings. Size up your situation and make your move secretively. HH

SCORPIO (Oct. 23-Nov. 21): Avoid anyone using manipulative tactics to play on your emotions or make you feel guilty. If you need a change, make it happen. Altering the way you live will give you the boost you need to head in a suitable direction. HHH

AQUARIUS (Jan. 20-Feb. 18): You’ll get a lead on an interesting position.

A partnership will sprout if you share your ideas with someone who is heading in the same direction as you. Love is on the rise, and romance will improve your future prospects. HHHHH

SAGITTARIUS (Nov. 22-Dec. 21):

Travel, adventure and all sorts of exciting changes will make your day.

Get together with people who enjoy the same things you do. Making a point to do something special with your loved one will lead to personal opportunities. HHHHH

PISCES (Feb. 19-March 20): Don’t let mixed emotions throw you off course.

An argument will be a waste of time.

New connections can be made if you join a political or fundraising organization. Your empathetic nature will attract people who feel the same way as you. HHH

BIRTHDAY DAY BABY: You are imaginative, adaptable and creative. You are willful and courageous.

DA

‘move it along’ BY HANK DELLMAN The Universal Crossword/Edited by Timothy E. Parker

ACROSS 1 Send, as payment 6 Chilean range 11 Swelter 14 Sheeplike 15 Raccoon cousin 16 John, to Ringo?

17 Gets ready for some scooping 19 Talk, talk, talk 20 Kind of alcohol 21 Cut with a scalpel 23 “No ___, Bob!�

26 Business needs 27 Botches (with “up�)

28 Walter who played Mr. Chekov 29 Wayside stop 30 City near Florence 32 Forest opening 35 Olive throwaways 37 Refine, as metal 39 Set at an angle 40 Pronunciation symbol 42 Foundation 44 Manhattan addition?

45 47 49 51 52 53 55 56 61 62 63 64 65 66

Jammed on a guitar One deliberately provoking another Mocker or jeerer Archery targets next to bull’s-eyes Purse-lipped one Some tadpoles, eventually Net alternative They’re under some homes “That’s awful!�

Not bold Make accustomed (to) “Deck the Halls� word Beats it Crow’s home

DOWN 1 Brouhaha 2 One of the Gabors 3 Thickness measure 4 Contract signers 5 Students, often 6 Like overworked muscles 7 Christmas carol 8 Nickname within the family

9 10 11 12 13 18 22 23 24 25 26 28 31 33 34 36 38 41 43 46 48 49 50 53

Star at Cannes?

Using an unspoken language Playing with the wind, in a way Cook chestnuts Frames used for holding oxen Grad student’s creation Tops off a room Victoria’s Secret selections Like some columns Detailed practices Drag over the ___ (reprimand) Work, as dough Fire remnant Block Pitchers in paintings Fleet Some leg bones Has an emotional impact on Certain excavation hole Containing iron Of unsound mind Teapot feature Pooch from Wales Insignificant person

54 Cutlass maker, once 57 Drs.’ group 58 Putter’s target 59 Before, either way you look at it 60 “Get it?�

SHOW Solution to yesterday’s puzzle:

E2

Sports

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BusinessMirror

| TUESDAY, JULY 7, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

AMERICAN DOMINATION CARLI LLOYD’S (inset) hat trick leads the US over Japan for the World Cup title. AP

Carli Lloyd scored three times as the US jumped to a four-goal lead in the first 16 minutes, and the Americans overwhelmed defending champion Japan, 5-2, for the team’s first World Cup championship since 1999.

VENUS

Bď?š Bď?Šď?Źď?Ź Sď?Łď?Żď?´ď?´ DPA

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ONDON—Novak Djokovic will carry his bid for a second straight Wimbledon title into the second week on Monday as he faces the big serve of Kevin Anderson after Wimbledon’s traditional middle Sunday off.

So far, the top seed from Serbia has been on song with his game, advancing into the fourth round without either the loss of a set or a serious test on the lawns of the All England Club.

Slow and steady is the way Djokovic likes it as he regains much-needed confidence after a beating in the Roland Garros final at the hands of Stan Wawrinka. “I’m trying to build my game, in general, every stroke is getting better each match,� said the 28-year-old who is coached by Wimbledon

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The Associated Press

ANCOUVER, British Columbia—Carli Lloyd lives for the big moment. She had her biggest on Sunday night—and gave the United States its record third Women’s World Cup title.

Lloyd scored three times as the US jumped to a four-goal lead in the first 16 minutes, and the Americans overwhelmed defending champion Japan, 5-2, for the team’s first World Cup championship since 1999.

A sellout crowd of 53,341 that included US Vice President Joe Biden roared in approval for Lloyd’s hat trick, the first-ever in a Women’s World Cup final. “It’s been a long journey, my career. I’ve had a lot of people believe in me, in my corner, from day one,� said the midfield, who turns 33 on July 16. “I’ve dedicated my whole life to this.

Everything else comes second. But I wouldn’t want to do it any other way.�

When it was over, Lloyd collapsed to her knees and pumped her fists. Forward Abby Wambach bear-hugged teary eyed Coach Jill Ellis, lifting her off the ground.

Lloyd, awarded the Golden Ball as player of the tournament, scored twice in a span of about 135 seconds as the US led 2-0 by the fifth minute.

Lauren Holiday boosted the lead in the 14th, and two minutes later Lloyd made it 4-0 with an audacious 54-yard, right-footed shot from midfield that sailed over goalkeeper Ayumi Kaihori.

Japan closed on Yuki Ogimi’s goal in the 27th and an own goal by Julie Johnston on an errant header in the 52nd. Tobin Heath scored two minutes later, the third goal off a restart for the Americans.

While winning the last three Olympic gold medals, the US had struggled in the World Cup since taking the title at the inaugural tournament in 1991 and then again at the Rose Bowl eight years later.

Christie Rampone, the only holdover from the 1999 team, lifted the trophy with Wambach, the 35-year-old former Fifa Player of the Year who has said this will be her last World Cup. Wambach was among the most vocal opponents of Fifa’s decision to play the tournament on artificial turf.

With Fifa President Sepp Blatter staying away from Canada during a US criminal investigation of soccer corruption, the trophy was presented by Fifa Senior Vice President Issa Hayatou of Cameroon, the head of African soccer’s governing body.

Hope Solo won her second straight Golden Glove as top goalkeeper of the tournament. She played despite critics who urged the US Soccer Federation to drop her after she initially faced two misdemeanor counts of domestic violence from a June 2014 altercation at her half-sister’s house, charges that were dismissed earlier this year.

Solo, who hasn’t spoken to the media for most of the tournament, proclaimed simply: “We did it! Awesome!�

The title, which adds a coveted third star to

the American uniform, also vindicated the USSF for its decision in April 2014 to fire Coach Tom Sermanni, who had replaced Pia Sundhage the previous year, and replace him with Ellis, the British-born American who had been an assistant on the coaching staff.

Ellis’s tactics and lineups were criticized early in the World Cup tournament when the US offense sputtered at times on offense. She shifted Lloyd to an attacking midfielder in the semifinal against top-ranked Germany and again in the final, and put 22-year-old Morgan Brian, the youngest player on her roster, in a defensive midfield role. “I want to thank Jill,� Lloyd said. “I know lots of people out in the stands were worried about us. We all held together. We all stayed the course. We all executed the game plan.�

Lloyd had come up big before, scoring the winning goals in the 2008 and 2012 Olympic finals.

She put the US ahead in the third minute off a grass-

hugging corner kick from Megan Rapinoe, streaking into the penalty area on a diagonal run and using the side of her left foot just in front of the spot to redirect the ball inside the far post.

She made it 2-0 after Holiday took a low free kick from the flank and Johnston made a backheel flick to Lloyd, who was 2 yards out. With her right foot, she poked the ball between two defenders and past Kaihori’s outstretched arms.

Lloyd’s third goal came when Kaihori ventured far off her line.

The keeper backpedaled and got her right hand on the long shot, but the ball glanced off a post into the goal.

It was the fastest hat trick

straight shutouts. The only other goal scored against her came in the first half of the tournament opener against Australia.

LEADING SEEDS PRIMED FOR FOURTHďšşROUND SHOWDOWNS resident Boris Becker. “That is something that is obviously very encouraging to see.â€?

Djokovic, who claimed top honors in 2011 and a year ago—when he beat Roger Federer in a dramatic fifth set—called himself “pleased with the performances so far.� “The second week is obviously always more challenging, more difficult than the first, but I’m ready for it now,� Djokovic said. “I have two days. I’m going to work on the court, get myself recovered and ready for a challenge that is presented in the second week.�

Djokovic is wary of the danger Anderson poses, but has beaten the 14th seed in four of five meetings, including a Wimbledon second round four years ago. “He’s another big server, someone in a great form. He’s probably playing the tennis of his life. He’s improved his movement and his game from the baseline. He always had a very

good serve,� Djokovic said. “It will be a match of very small margins that will be decided by a few points. I’ll try to mix up the pace, and hopefully I’ll be on the high level against Kevin.�

Wawrinka, chasing his second straight Grand Slam title after winning Paris a month ago, takes a 2-0 record into his match with 16th seed David Goffin.

The fourth-seeded Swiss reached the quarterfinals a year ago, his best showing in London. “For sure, confidence is there,� said Wawrinka, winner of two of the last six Grand Slams, the other being the 2014 Australian Open. “I’m focused every match and I’m happy to be in second week. But I didn’t arrive here saying I have to do second week. I’m playing match after match. I know what I can do, how well I can play, and hopefully I can still win some more. “The season is really short on grass. If you

do one bad match, you’re already out of the tournament and you don’t have many other opportunity to play well. “I’m in the second week playing good, not playing my best tennis, but playing good and still there. I’m feeling strong on the court, hopefully I can play some great match on Monday.�

Compatriot Roger Federer, seeded third, is bidding for history as he chases a record eighth title which would only add luster to his goldplated reputation as arguably the best to ever play the game.

The second seed lost his first set of the week against Australian Sam Groth and will now line up against Spain’s Roberto Bautisa Agut. “He’s not a typical Spaniard, he plays flat shot and that might help him on grass,�

Federer said. “The first week was good, I’m very happy.

It was hot so I’m glad I didn’t have any long

in World Cup history—men or women—and Lloyd became the first American since Michelle Akers in 1991 to score multiple goals in a World Cup final. The only other hat trick in a World Cup final was when England’s Geoff Hurst scored three times against Germany in the men’s 1966 final at Wembley. “Miss Lloyd she always does this to us. In London she scored two goals and today she scored three goals. We are embarrassed,� Japan Coach Norio Sasaki said. “But she is an excellent player and I really respect her and admire her.�

Lloyd scored six goals in seven matches during the monthlong tournament, including in every US game in the knockout phase. She raised her international goals total to 69 and joined Carin Jennings in 1991 as the only Americans to win the Golden Ball.

Holiday added her goal to cap a counterattack, volleying in from 10 yards after Azusa Iwashimizu’s header on an attempted clearance bounded high in the air. Heath scored from 4 yards after a Holiday corner kick, which went off Kaihori’s weak punch to the far post for Brian to play back in front.

Ogimi’s goal was the first Solo allowed after five

four or five-setters. I’ll focus now on the matches going forward.�

Andy Murray will continue his quest to become the first British man to win multiple Wimbledon titles since Fred Perry, who won three titles between 1934 and 1936. The 2013 champion next faces the huge serve of Ivo Karlovic. “He will come to the net a lot,� Murray said. “He’s served more than 40 aces in a couple of his matches. Returns must be on if I’m to get through.�

Serena Williams has taken her place as expected at the top of the women’s draw, but will be facing her elder sister Venus in the fight to reach the quarterfinals. “It’s unfortunate that it’s so soon,� the fivetime Wimbledon winner said. “But we’re going to do the best that we can. “She’s my sister today, my sister next week,

SERENA

my sister next year. I think that’s a little more important than a match. We’ll leave everything out on the court. When it’s done, we’ll go back to regular life,� said the player who needs the victory to keep alive her goal of trying to earn a calendar-year grand slam title sweep.

Third seed Maria Sharapova, whose Wimbledon title came as a teenager in 2004, takes on 34th-ranked Kazakh outsider Zarina Diyas, with the Russian battling to escape a relative slump after ending her run in the fourth round in two of the past three editions.

But the five-time grand slam winner is not bothering herself with past statistics. “It’s easy to get ahead of yourself and thinking too far down the line,� Sharapova said. “Of course, you expect to raise your level with every match, but you have to be realistic against every opponent and you can’t underestimate anyone’s level.�

SPORTS

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GOING DOWN Filipino traders pass by an electronic board showing a downward trend, both in the Philippine and other Asian markets, at the Philippine Stock Exchange at the financial district of Makati City, on Monday. Asian shares tumbled on Monday after Greece’s voters vehemently rejected conditions set by its international creditors, deepening doubts over their future in the 19-nation euro zone. AP/AARON FAVILA

COA: MMDA partly PHL may sell $750-M global bonds in 2016 to blame for flooding T B� D���� C����������

AMERICAN DOMINATION C1

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BRITAIN’S Prince William, Kate the Duchess of Cambridge and their son, Prince George, bring the carriage with Princess Charlotte to her christening on Sunday at Saint Mary Magdalene Church in Sandringham, England. AP

Adding Sweet-ness to Peta’s ‘Rak of Aegis’ NO stranger to the stage, Sweet Plantado-Tiongson of the premier vocal group The CompanY, joins the Barangay Venizia of the Philippine Educational Theater Association’s (Peta, www.petatheater.com Rak of Aegis www.petatheater.com) as Kapitana Mary Jane. Having been immersed in the performing arts for 22 years, she fits right in with the talented cast of the hugely successful musical.

Known for her resonating vocals and commanding stage presence, Sweet has proven to be an ultimate performer having worked on and off stage for a number of prestigious theater companies such as Trumpets, 9Works Theatricals and Tanghalang Pilipino, where she started her theatrical career.

Aside from her impressive acting and musical theater credits, Sweet is also an esteemed voice coach and

Monetary Stability Sector Diwa C. Guinigundo said the BSP backs the DBCC’s recent decision retaining the growth target of 7 percent to 8 percent this year and next. “We continue to be optimistic that, if we could decisively address all those factors that pulled back growth in the first quarter of 2015, including modest public spending, we have the capacity to grow at least 7 percent,� Guinigundo said.

Conclusionďż˝

ECORDS released by the Commission on Audit (COA) showed that some projects of the Metropolitan Manila Development Authority (MMDA) were not implemented at all, even though the funds meant for them were already disbursed by the government.

Although some of the funds released for these canceled projects were returned by the MMDA to the national Treasury, some of the allocations were used for other projects that could be considered as having little social or economic impact, par-

PESO EXCHANGE RATES n US 45.0760

ticularly in terms of solving the perennial problems of flooding, heavy traffic, and inadequate sanitation and cleanliness in Metro Manila.

In many instances, in 2012 and 2013, which are covered by the COA’s latest audit reports on the operations of the MMDA, the agency had not shown efficiency in the use of funds.

For example, in the COA report for 2013, the commission noted that urban-renewal projects amounting to P72 million were not implemented. Â The MMDA reasoned that these projects were not implemented because there was an ongoing project Cď?Żď?Žď?´ď?Šď?Žď?ľď?Ľď?¤ ď?Żď?Ž Aď™…

HE Philippines may offer about $750 million of global bonds in 2016 while seeking to keep domestic funding elevated, according to Treasurer Roberto B. Tan. The countr y plans to borrow P747 billion ($16.6 billion) next year and will probably sell P33 billion of global bonds, Tan said in a July 4 interview at the Clark economic zone in Pampanga.

About P643 billion, or 86 percent, will be raised locally, as the market remains very liquid, he said.

The Philippines has increased reliance on the local market to fund its budget, as money supply almost doubled in the five years under President Aquino. A steady flow of remittance by overseas workers and revenue from the outsourcing industry boosted liquidity to P7.6 trillion in May, compared with

about P4 trillion at end-2009. “The government has cut foreigndebt component to 34 percent of the total, reducing our vulnerability to fluctuations in the foreign currency,�

Tan said separately in a speech at an event by the National Association of Securities Broker Salesmen Inc. “Ample domestic liquidity has allowed the government to source a majority of its financing requirement locally.�

Of the P104 billion the nation plans to raise internationally in 2016, P71 billion will probably come from official development loans, Tan said, citing preliminary data pending approval from the economic team.

Changing environment

IN 2016, local debt sales may increase by 9 percent to P643 billion, compared with P590 billion this year, while exter-

nal borrowing may drop by 6 percent from P111 billion, according to Tan. “The environment is changing and there are potential risks, such as threats of an El NiĂąo and rising US rates,â€? BDO Unibank Inc. market strategist Jonathan Ravelas said. “It makes sense to borrow now to prefund next year’s requirement.â€?

The Philippines sold $2 billion worth of 25-year notes in January at a record-low coupon for the country’s similar-dated overseas debt, using $1.5 billion to finance the purchase of shorter-dated securities to extend maturity. The nation is looking out for the possibility of a similar debt exchange, as well as opportunities for selling overseas debt earlier than its typical schedule at the start of the year, Tan said.

Bloomberg News

n JAPAN 0.3673 n UK 70.3141 n HK 55.8143 n CHINA 7.2636 n SINGAPORE 33.4938 n AUSTRALIA 33.8612 n EU 50.0569 n SAUDI ARABIA 12.0196 Source: BSP (6 July 2015)

A2 Tuesday, July 7, 2015

BMReports BusinessMirror

news@businessmirror.com.ph

COA: MMDA partly to blame for flooding. . .

Continued from A1

by the Department of Public Works and Highways (DPWH) in the area, making them unfeasible.

The projects that were not implemented include the following: asphalt overlay along Manila International Airport/Ninoy Aquino International Airport (MIA/Naia), P28.31 million; pavement markings and trafficroad signs along MIA/Naia Road, P2.33 million; asphalt overlay along Ninoy Aquino Avenue MIA Road to La Huerta Bridge, P38.26 million; and the pavement markings and traffic-road signs along Ninoy Aquino Avenue from MIA Road to La Huerta Bridge, P3.17 million.

The said projects were not implemented due to the construction by the DPWH of an elevated expressway in the same location.

The government would have saved money due to the cancellation of these projects, but the MMDA decided to pursue other projects instead. However, the replacement projects do not seem to have the same economic impact if compared to the original projects for which the funds were originally allocated.

The replacement projects implemented by the MMDA were flowerpots for beautification of Edsa, P15.74 million; landscaping works along Edsa from Roxas Boulevard to Aurora Boulevard/Tramo, P7.28 million; and landscaping work along Edsa from Kalayaan Avenue to Buendia Avenue, P1.41 million.

Compared to the original projects for which the P72-million budget was allocated, the funds spent by the MMDA for flowerpots and landscaping have little value for money, and the effects of which are not felt by the citizens, much less noticed by them while they’re caught in heavy traffic along Edsa.

This did not escape the COA’s scrutiny.

“As may be noted, the implemented projects were entirely different from the original

urban-renewal projects in terms of nature of works and location, thus, the purpose of the fund transfer was not fully attained contrary to COA Circular 94-013,” the COA’s annual report for 2013 said.

“The implementation of these projects left a fund balance of P47.65 million to be refunded to the DPWH. Verification revealed that the amount of P51 million, consisting of the unexpended balances for urban-renewal projects and other projects was already refunded to the Bureau of the Treasury on August 8, 2014,” the report added.

The policy behind the cited COA Circular 94-013 is to ensure that funds requiring interagency coordination are used for the intended purpose to ensure that the spending of government money is coordinated among the different agencies that have overlapping functions, such as the MMDA and the DPWH. The COA, in its last two reports on the efficiency of the expenditures and implementation of the projects by the MMDA, also noted that the agency had not been very efficient in implementing flood-control projects.

The inefficiency is shown in either the delays in the completion of the projects, which prevented such projects from providing timely relief during the rainy season; or in the lack of planning and coordination in the implementation of infrastructure projects, which resulted in wastage of government money.

In 2012, for instance, the COA observed in its annual audit report for that year that flood-control projects did not serve the purpose for which they were funded by the government because of inefficient implementation and inadequate planning by the MMDA. In that year, a big chunk, or 83.5 percent, of the flood-control projects were completed only in the third and fourth quarters of the year, long after the rainy season had

rescue boats were used to pick up Light Rail Transit passengers who got stranded in the flooded R. Papa station in Rizal Avenue, Caloocan City. The flood is caused by continuous rain brought by Tropical Storm Egay. Kevin de la Cruz

begun, during which these projects were most needed.

“Of the 49 proposed flood-control projects in 2012, a total of 41, or 83.47 percent, costing P224 million of the P322-million budget, were completed only in the third and fourth quarters of 2012 and January 2013, as procurement activities were undertaken in the second and third quarters of the year, thereby defeating the intent of mitigating, or preventing, the impact of the heavy rains to the public at large to which these projects could have served their purpose,” the COA Annual Audit Report for 2012 said.

In response to the delayed implementation of the flood-control projects in 2012, the COA recommended that the MMDA should “revisit its strategies and practices in the implementation of flood-control projects,

given that time is of the essence vis-á-vis the weather patterns of the Philippines.”

However, during the following year, the COA observed in its follow-up activities on its recommendation that there were still more than 50 percent of approved flood-control projects that were not delivered on time.

In the COA audit report for 2013, the commission said that when it followed up the recommendations on the flood-control projects the previous year, it was found that the MMDA only partially complied with such recommendations, resulting in another delayed implementation of these vital undertakings during the rainy season, when they are needed most.

“For projects undertaken in 2013, 30 of 62, or 48.40 percent, of the projects funded under the General Appropriations Act

Continued from A1

were still not delivered before the onset of the rainy season,” the Part III of the COA Annual Audit Report in 2013 said.

While it may be a noble deed that the MMDA had been returning funds allocated for canceled projects to the national treasury, the full amount for the original projects was not refunded because a part of the fund was used for projects with minimal economic impact.

Instead of using the full allocation for the specified purposes, the MMDA used a part of the allocation for other purposes that do not have the same economic impact as the original purpose for which the allocation was actually made.

This results in a low value for money for the substitute projects, a fact that is camouflaged using the ruse that the substituted projects actually resulted in savings for the government.

The MMDA was created to make sure there is an efficient coordination of these activities so there would be a cost-effective use of government money in delivering such services. However, the record of the MMDA in undertaking these projects shows otherwise that there is no coordination and there is no efficiency, which results in further wastage of government money, the very intent for which the MMDA was created.

Worse is the MMDA’s penchant for labeling these as savings, when there is really no savings because the projects that were substituted have little or no socioeconomic impact as compared to the original projects for which the allocations were granted.

In the end, it would be the performance of the MMDA that will be the gauge of its success or failure as a coordinating body.

It would be the concrete efforts to address traffic and flooding that will be felt by the citizens, and not the MMDA’s propaganda and superficial projects.

news@businessmirror.com.ph

The Nation BusinessMirror

Malacañang orders tight watch against MERS-CoV

By Butch Fernandez & Claudeth Mocon-Ciriaco Correspondent

M

AL AC AÑANG ordered tighter screening in airports and other ports of entry after a foreign visitor tested positive for the deadly Middle East Respiratory Syndrome-Corona Virus (MERS-CoV).

The foreigner has been confined in isolation at the Research Institute for Tropical Medicine (RITM) in Muntinlupa City since Saturday.

Communications Secretary Herminio B. Coloma Jr. on Monday confirmed President Aquino’s directive even as the government affirmed its readiness to deal with the problem, assuring that the Department of Health (DOH) is adequately prepared to handle the situation.

“President Aquino has tasked the DOH to tighten surveillance and quarantine measures at ports of entry and to ensure the prompt reporting by all hospitals of patients who show symptoms of the disease for immediate isolation, treatment and contact tracing,” Coloma said.

He pointed out that the government has installed sufficient safeguards to contain the dreaded disease. “The Philippines, through the Department of Health, is fully ready and capable of detecting, isolating and treating any reported case of MERS-CoV in the country,” Coloma assured.

He quoted Health Secretary Janet Garin’s update on the foreigner found

positive for MERS-CoV as saying that the patient, whose identity was withheld, “remains in isolation while undergoing treatment at RITM.” He added, however, Garin’s report also said that further test results “indicate improvement in the patient’s condition.”

In a news conference at the DOH main office in Manila, Garin said, the patient had a “low viral load” of MERS-CoV, indicating that the 36-year-old male may be on his way to recovery.

DOH Spokesman Lyndon Lee Suy said the patient was on the 14th day of the incubation period of the virus when he was tested.

This means, Lee Suy said, that the risk of transmission to other passengers in the same flight with the patient is lower. The patient had traveled from Saudi Arabia through Dubai.

He said that the DOH personnel have been sent to trace the other 200 passengers of the flight that brought the MERS victims to the country.

Garin added that there is no need to panic, saying: “Ipinapaalala po natin sa publiko na walang documented community transmission ang MERS-CoV.” MERS-CoV is a severe acute respiratory illness with symptoms including fever, cough and shortness of breath.

As of June 2015, the World Health Organization has recorded 1,338 laboratory-confirmed cases since 2012 in 26 countries. At least 475 of those afficted died.

Editor: Dionisio L. Pelayo • Tuesday, July 7, 2015 A3

China won’t go to war over WPS–envoy

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By Recto Mercene

HINA assured the Philippines on Monday that it will not go to war over the contested isles and shoals on the West Philippine Sea (WPS), “because it is not in our interest to disrupt the peaceful and cooperative environment [in the area].”

“No, not at all. I cannot imagine that China would wage a war against the Philippines over what is happening in the South China Sea. It is not China’s policy and will not be China’s policy,” Chinese Ambassador to the Philippines Zhao Jianhua said.

“So don’t worry. We still like to have bilateral negotiations with the Philippines so that we can settle it [the WPS claims] in a peaceful manner.”

The Philippines and China, since 1995, had been locked in territorial disputes over the islets and shoals in the WPS. A high-level delegation, led by Foreign Affairs Secretary Albert F. del Rosario, and buttressed by foreign experts, is scheduled to present oral arguments before the Permanent Court of Arbitration on Tuesday to find out whether the United Nations Convention on the Law of the Sea (Unclos) has jurisdictions

over the issue.

The mission will also ask the International Tribunal on the Law of the Sea (Itlos) to limit China’s claim on the area, as defined by its so-called nine-dash line, which practically had encroaches on the Philippine’s exclusive economic zone.

Jianhua explained that the ongoing dispute is not about the militarization of the WPS features, some of which China has expanded into small islands through reclamation.

“What I would like to emphasize is that we do not wish to define these disputes as military issues because they are political and diplomatic issues which require political and diplomatic solution. So we need to be very careful in defining these issues as military issues. China has never regarded the dispute as military dispute. It is a political, diplomatic dispute,” he added.

“Political and diplomatic issues require a political and diplomatic means [to solve] so they would be wrong to highlight the military as-

Storm triggers floods, knocks out power in Northern Luzon

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‘Falsification’ of birth date gets immigration exec in trouble

By Joel R. San Juan

A

RANKING official of the Bureau of Immigation (BI) is facing criminal and administrative charges before the Ombudsman for allegedly falsifying public documents just to extend his employment.

In a complaint affidavit filed before the Ombudsman, Immigration Commissioner Siegfred Mison accused lawyer Faisal U. Hussin of the BI Intelligence Division of committing serious dishonesty, grave misconduct and falsification of official documents when he allegedly misrepresented the date of his birth in his Personal Data Sheet (PDS).

The PDS is a required document filed by applicants for employment in the government.

Every PDS is sworn to by the applicant, declaring that all information stated therein are true and correct.

Hussin was employed as Intelligence Officer V of the bureau in 1995.

Hussin filed his PDS in 1995 with a declaration that he was born on January 30, 1948. The same date of birth was shown in his PDS for the years 1998, 2004, 2005, 2007 and 2008.

The same date of birth was also indicated in his marriage certificate, as well as his PDS filed before the Integrated Bar of the Philippines.

A check with the birth certificates of his children shows that his birth date is January 30, 1948.

But, Mison said Hussin changed the date of his birth to June 30,1950 in 2013 to defer his re-

MISON: “Due to Hussin’s acts, he continuously received salary and benefits attached to his position in the bureau and got a higher retirement pay even beyond his retirement to the detriment of the government.”

tirement to 2015.

Mison claimed that Hussin wanted to extend his employment as member of the bureau for two more years.

Government employees are mandated to retire when they reached 65 years old.

In the PDS he filed in 2012, Hussin allegedly changed his birth date to extend his term of service.

Surprisingly, however, Mison said Hussin did not attempt to change his birthdate in his marriage certificate, the birth certificates of his children and any other government agencies requiring the reportage of his age.

“Due to Hussin’s acts, he continuously received salary and benefits attached to his position in the bureau and got a higher retirement pay even beyond his retirement to the detriment of the government,” Mison said.

He said Hussin’s action is an obvious violation of Memorandum Circular 31 dated November 20, 2001, because he did not submit additional pieces of evidence to support his change of birth date.

REMEMBERING WW II Filipino-Chinese students view the exhibit titled A History Written in Blood held at a hotel in Pasay City. The photo exhibit

is about the war crimes committed by Japanese soldiers in the Asia-Pacific region during the Second World War. The exhibit was held in time for the 70th anniversary of the surrender of the Empire of Japan to the Allied Powers. ROY DOMINGO

Criminalizing fraudulent PhilHealth claims urged

By Ashley Manabat Correspondent

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LARK FREE PORT—A former Philippine Health Insurance Corp. (PhilHealth) executive said here on Friday that it is time to further tighten the rules against fraudulent claims in health insurance filed by medical practitioners by making them criminally liable.

Curing the media forum “Balitaan” organized by the Capampangan in Media Inc. in cooperation with the Clark Development Corp. and the Social Security System at the Bale Balita here on Friday, Tito Mendiola, former PhilHealth senior vice president, said the tight measures should be implemented in the light of the rising incidents of suspected fraudulent claims filed by physicians to protect the interest of the public.

Last year alone PhilHealth paid P78 billion in insurance benefits.

In the same year, 10 physicians filed health-insurance benefit claims

worth P500 million, PhilHealth chief Alex Padilla said.

The huge amount claims triggered suspicions in PhilHealth that these were tainted by fraud, especially after it was found that nine out of the 10 doctors are ophthalmologists.

Mendiola said many insiders of the institution are convinced that at least 5 percent, or P3.9 billion, of the payments in 2014 were for fraudulent claims.

“It is not unlikely that this has happened, too, in the preceding years,” Mendiola said.

This is a situation that must be corrected immediately if only to protect the people’s money, he added.

PhilHealth’s core equity is contributed by the public, either directly or through the taxes and fees paid to the government.

What needs to be introduced are new provisions in the laws that would criminalize medical malpractice stemming from fraudulent claims for health-insurance benefits

which shall serve as the sole basis for canceling the license of an erring medical practitioner, Mendiola said.

PhilHealth, in turn, must tighten its procedures in processing claims for medical insurance that would allow it to spot fraud, according to Mendiola, who also served as former Floridablanca mayor and is “raring to throw his hat in the municipality’s mayoral contest in next year’s elections.”

Mendiola said PhilHealth must also enter into a multiagency arrangement with the Department Health, Department of Justice, Professional Regulation Commission and the Philippine Medical Association “to effectively curb this malpractice.”

Earlier reports said Padilla has ordered a suspension of payments to the 10 doctors whose claims for health-insurance benefits hit P500 million, pending clearance from a team of auditors tasked to validate the claims.

Comelec to use SC ruling in accrediting party-list groups

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HE Commission on Elections (Comelec) on Monday said it will use the Supreme Court’s (SC) ruling in the case of Atong Paglaum in deciding which party-list groups will be allowed to participate in next year’s elections.

Elections Commissioner Christian Robert Lim said the 2013 SC ruling in Atong Paglaum et al v. Comissioner on

Elections said that the 1987 Constitution and the Party-List System Act do not require parties, organizations and sectors to be marginalized and underrepresented before they are allowed to join the elections.

It also held that even advocates of the marginalized and underrepresented sectors could become nominees, and, therefore, earn a seat in Congress.

pect or define it as that.”

Asked to comment on the ongoing hearing at The Hauge, the Netherlands, Jinhua said: “I know we have made our position quite clear and our position is consistent. We will not accept nor participate in the arbitration. Because you know China is a party to the Unclos, and under Article 298, China has announced that we will not accept any compulsory arbitration when we become a part of the Unclos.”

“It is not only China which did that, 34 other countries did that, including the UK, South Korea, Thailand, so we’ll stick to that position,” he added.

Ask for the best solution to the dispute, he replied: “I think the best is to sit down bilaterally to talk. Our door for bilateral consultation and negotiation is still open and will be open forever.”

“We need to resume our bilateral negation without any condition. I think this is the best way that we can discuss how to peacefully settle these disputes,” Jianhua added.

“Indisputably, the framers of the 1987 Constitution intended the party-list system to include not only sectoral parties but also nonsectoral parties. The framers intended the sectoral parties to constitute a part, but not the entirety, of the party-list sytem,” the Court ruled in 2013.

“We are using the the Atong Pa-

glaum ruling as our criteria because that’s the latest ruling by the SC,” Lim told reporters in an interview.

Under the SC ruling, the Comelec said the applicants only need to meet the requirements set under the PartyList System Act such as having constitution; by-laws; platform or program of the government while not advocating violence; is not a foreign party;

nor a religious sect or denomination.

As of May 8, a total of 243 partylist groups have filed Manifestations of Intent to Participate in the 2016 elections.

The figure is much higher compared to 2013 when a total 183 party-list groups filed Manifestations of Intent to Participate in the 2013 midterm elections. Joel R. San Juan

T Y PHO ON ble w a c ro s s Northern Luzon on Sunday, causing floods and power outages in several towns and prompting rescue teams to scramble to evacuate villagers in low-lying communities.

There were no immediate reports of casualties from slow-moving Tropical Storm Egay, which set off minor landslides in at least two mountainous provinces, officials said.

The storm, which had sustained winds of 85 kilometers per hour and gusts of 100 kph, was expected to start blowing away from the country on Monday afternoon, government forecasters said.

Melchito Castro, a regional disaster-response agency chief, said the hardest-hit area was La Union, where 11 towns were swamped in floodwaters that stranded villagers in their homes.

The entire province lost power as the storm lashed, he said.

“There’s massive flooding here in La Union,” Castro said, adding that the pounding rain caused about three rivers to swell.

Rainwater also cascaded down from a mountain range and swamped La Union, a coastal province of about 800,000 people, officials said.

Egay was the fifth storm to batter the Philippines this year and the first after a prolonged and dry summer that threatened farmlands and dams that supply tap water and irrigation in many areas. About 20 storms and typhoons batter the country each year.

As of Monday noon, storm warning Signal 2 is hoisted over the provinces of Batanes, Cagayan, including Calayan and Babuyan group of islands; Apayao; Kalinga; Ilocos Norte; Ilocos Sur and Abra.

Under Signal 1 are the provinces of Pangasinan, Isabela, Benguet, L a Un ion, Mou nt a i n Prov i nce and Ifugao.

As of Monday noon, Egay was estimated at 160 km northwest of Laoag City carrying maximum sustained winds of 75 kph and gustiness of up to 90 kph.

In Manila, Chief Justice Maria Lourdes Sereno announced the early dismissal of employees of the Supreme Court and the Court of Appeals starting 2:30 p.m.

Sereno cited threats of flooding arising from the orange rainfall alert over Metro Manila as basis for the employees’ early dismissal.

For Metro Manila trial courts, Sereno gave the executive judges the discretion whether to cut short their office hours or not, depending on the situation in their respective localities. Joel San Juan, AP, PNA

Economy

A4 Tuesday, July 7, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

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Belmonte outlines legislative priorities in remaining months of 16th Congress

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By Jovee Marie N. dela Cruz

he leadership of the House of Representatives on Monday said measures promoting “genuine peace” in the country and sustaining inclusive growth will be prioritized in the remaining months of the 16th Congress.

House Speaker Feliciano Belmonte Jr. said both chambers of Congress wrestle with time to craft and pass measures in their common list of legislative priorities before the current Congress ends in June next year. “ The BLBar [Basic Law on Bangsamoro Autonomous Region] is now on second reading and being fine-tuned to ensure greater inclusiveness and greater efficiency in practice,” Belmonte said.

“We want to ensure a more meaningful autonomy while, likewise, paving the way toward a more effective provision of vital services to our people. We want a peace that is lasting and sustainable,” Belmonte added.

The BLBar is now in the period of interpellation in the House of Representatives’s plenary, while a similar measure is still under committee consideration in the Senate.

According to Belmonte, Congress’s priority measures promote economic development and trade; national security, public order and safety; promotion of good governance; revitalizing education for a more competitive human resources; enhancement of social protection; expanding access to health to achieve higher productivity; unleashing land productivity; sustainable energy; climate-change adaptation; and peace.

Belmonte said the amendments

to the build-operate-transfer law have been approved by the Committee on Public Works and Highways and referred to the appropriations panel for its funding provision, while the proposed Rationalization of Fiscal Incentives is undergoing refinement by a Technical Working Group (TWG), like the proposed grant of broader protection to consumers by amending the Consumer Act. Also under the TWG is the proposed restructuring and decreasing the income taxes imposed on individuals and corporations or the income-tax bracket adjustment.

Belmonte said the proposed amendments to the Customs Modernization and Tariff Act is already undergoing the period of interpellation in plenary and proposed Rationalization of the Mining Revenue, or Excise Tax on Mining, awaits approval at the committee level.

The Speaker’s pet initiative to ease the restrictive economic provision in the Constitution, by inserting the phrase “unless otherwise provided by law,” has passed the second reading and is now pending for plenary final approval.

The House also approved on third reading the measures providing for the establishment of the No Calls and No Text Registration System; the provision of a centralized accounting of all tax incentives granted by

investment-promotion agencies and other government agencies; acquisition of right of way of government infrastructure projects; and the establishment of information and communications technology hub in every legislative district.

Furthermore, notable of those passed on third reading are bills increasing the prescriptive period from 15 years to 30 years/20 years for the violation of Republic Act (RA) 3019, otherwise known as the AntiGraft and Corrupt Practices Act; and the Act Promoting Micro-Enterprise Development.

The proposed and equally vital measure establishing the Archipelagic Sea Lanes in Philippine Waters to rationalize the passage of ships and ensures the safety and security of navigation within these waters have been approved and transmitted to the Senate, the Speaker said.

Also approved at committee level are the Whistle Blowers Protection Act; the Amendments to the Witness Protection Act; and the measure seeking to introduce structural and institutional reforms in the 74-yearold Immigration Act. Belmonte also said the Freedom of Information Act is awaiting second reading passage.

Approved by their mother committees and referred to the appropriations panel for their funding provisions are the proposed Land Administration Reform bill; the Regulation of Water Utilities; National Food Authority Reform Act; and the proposed creation of the Department of Information and Communications Technology, the Speaker said.

Also awaiting final committee approval are the Barangay Officials Welfare and Incentives Act; Amendments to the Bangko Sentral ng Pilipinas Charter; and the Sangguniang Kabataan reform bill.

Still under committee deliberation is the bill establishing the emergency Management Agency, separate from the National Disaster Risk

Reduction and Management Council, it allocates quick response and calamity funds for local emergency management offices, Belmonte said.

Relative to human resource development through education, Belmonte said awaiting the President’s signature is the proposed act providing for an Open High School System for out-of-school youth, while under bicameral consideration is the proposed Unified Student Financial Assistance for Higher and Technical Center.

Approved on third reading and pending in the Senate are the Special Education Center; Establishment of a Voluntary Student Loan System; and the National Identification System, he said.

To correct the provisions earlier vetoed by the President are two bills approved on third reading—Protecting the Rights of internally displaced Persons and Penalizing the Act of Arbitrary Internal Displacement; and the Magna Carta for the Poor.

On the matter of expanding access to health to achieve higher productivity is the enactment of Republic Act (RA) 10643, or the Picture-Based Health Warning Act, as complemented by the third reading approval of the proposed Healthcare Services Price Disclosure Act and the HIV and AIDS Prevention, Treatment, Care and Support, and establishing the Philippine National HIV and AIDS program, the lower chamber leader said.

Related to the vital concern of unleashing land productivity is the approval on third reading of the proposed National Land Use Policy and the bill defining what constitutes forestlands, providing guidelines in determining specific limits of forestlands.

Promoting the very important energy sector, the House Committee on Energy has recently approved the proposed amendments to the Electric Power Industry Reform Act law, while the proposed Energy Efficiency and Conservation Policy,

among other energy-related bills is pending with the panel.

Also in the legislative pipeline is the enactment of the amendments to the country’s Fisheries Code, which gives focus on issue related to climate-change adaptation.

Accomplishment Meanwhile, on the realm of economic development and trade, the Speaker credited his colleagues for the enactment of the liberalized entry and scope of operations of foreign banks in the Philippines (RA 10641), the amendments to the Lemon law (RA 10642) and the extension of the corporate life of the Philippine National Railways (RA 10638).

On national security, public order and safety, Belmonte noted the enactment of RA 10639—Mandating telecommunications service providers to send free mobile alerts in the event of natural and man-made disasters and calamities (RA 10640), the Strengthening of the Anti-Illegal Drugs law, and Joint Resolution No. 5 or the the Armed Forces of the Philippines Subsistence Allowance.

On the persistent efforts to achieve good governance, Belmonte said there are RA 10635, or the Amendments to the Maritime Industry Authority Charter; RA 10644, or the so-called Go Negosyo program; and RA 10660, which amended the Sandiganbayan Law. Belmonte also noted the enactment of RA 10647 or the Ladderized Education Program (post secondary), RA 10648, or the Iskolar ng Bayan Act, and RA 10650 or the Open Learning through Distance Education in Post Secondary and Tertiary Levels Act. Likewise, Belmonte said Congress has already transmitted to the President for his signature the proposed amendments to the Cabotage law and the long-awaited Philippine Fair Competition Act or the Anti-Trust Act.

OFWs in Greece Customs seizes smuggled rice, sugar, cigarettes in Zamboanga told: Be ready for T any eventuality

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he Department of Foreign Affairs (DFA) asked the more than 100,000 Filipino migrant workers in Greece to prepare for any eventuality, while extending the Philippine government’s hand to assist those who might need help.

The offer was made through Spokesman Charles Jose, addressed to the 61,500 overseas Filipino workers (OFWs) and 50,000 seafarers who are caught amid Greece’s tumultuous referendum.

“With regard to Greece, the DFA and the embassy in Athens are continuously monitoring the situation in Greece for any eventuality, the embassy is prepared to extend any assistance to any OFW,” Jose said at a news briefing.

In a referendum conducted on Sunday, Greek voters rejected a bailout package by the country’s international creditors, which requires the struggling Mediterranean country to adopt new austerity measures in return for emergency funds.

Over 61 percent of Greeks voted against the deal, while less than 39 percent voted in favor.

The result of the referendum is considered a major victory for Greek Prime Minister Alexis Tspiras, who had campaigned heavily against the deal put forward by the European Central Bank, the International Monetary Fund and the European Commission.

But it also raises uncertainty about the country’s financial future and its place in the euro zone. Greek is indebted to many European countries, and particularly to Germany and France.

“We still have to see the full implications of the referendum,” Jose added.

Ask what would happen if many of the migrant workers would opt to return to the country, Jose said that would be the concern of the Overseas Workers Welfare Administration. Recto Mercene

HE Bureau of Customs (BOC) announced on Monday the confiscation of smuggled sugar, rice and cigarettes amounting to at least P10 million that arrived at the Port of Zamboanga last month.

Based on the BOC’s intelligence report, combined operatives of the BOC and the Philippine Coast Guard (PCG) apprehended the vessel ML Nur-Ena and seized around 2,500 sacks of imported white sugar with an estimated value of P6.3 million on June 25.

The vessel, which came from Jolo, Sulu, was subjected for inspection by virtue of a search and seizure order on signed by BOC-Port of Zamboanga district collector Jerry Loresco.

The inspection was witnessed by the local police and barangay officials since the owner and master of vessel were not around.

The said vessel and its contents are now under guard by members of the Coast Guard Station of Zamboanga and Task Force Zamboanga.

Meanwnhile, on June 16 Customs intelligence operatives, together with personnel from PCG, Philippine Navy, Marines, and other government intelligence units, apprehended the vessel MV Kristel Jane 3, which was docked at the Zamboanga port based on derogatory information that undocumented sacks of imported rice and cigarettes were onboard.

The inspection resulted to the confiscation of 3,031 sacks of smuggled Sunrise AAA rice, 12 boxes of assorted brands of cigarettes and 23 sacks of refined sugar worth around P4 million.

During the search, it was found out that the MV KristelJane crew hid bags of rice inside the ship’s cabin, chimney and engine bilges to avoid detection.

Several boxes of cigarettes were also found inside the cabinet of the ship’s life jackets.

“All apprehended vessels and their cargoes were properly turned over to the BOC Port of Zamboanga for processing and filing of charges including the issuance of the warrant of seizure and detention,” Loresco said. Joel R. San Juan

briefs d.t.i. to millers: cut flour prices by at least p40 per bag The Department of Trade and Industry (DTI) is calling on flour millers to reduce flour prices by at least P40 per bag to reflect the decrease in global wheat prices.

Undersecretary Victorio Mario A. Dimagiba said a P40 reduction on flour is justified to bring about a P1 decrease in bread.

“This [reduction] covers hard flour class 1 and 2 and 3, including premium. The DTI computation shows flour prices should range from P780 to P820. [Current average] is at P860 using Gardenia purchases as it is the market leader,” Dimagiba said through text.

This comes as the DTI last week recommended the filing of collusion and profiteering cases against flour millers and bakers for refusing to lower prices of flour and flour-based products.

The National Bureau of Investigation is continuing its investigation based on the recommendation of the DTI. Bakers have said that the price reduction would have to come from flour millers, and that P100 to P200 per bag would be needed for the savings to be passed on to them.

Sources in the industry said two flour millers have already complied with the request, lowering their prices

by P10 to P20 . Catherine N. Pillas

cheaper gas, diesel on tuesday Oil firms will cut pump prices of their fuel products on Tuesday.

In an advisory, Pilipinas Shell Petroleum Corp. (PSPC), PTT Philippines and Seaoil Philippines Inc. (SPI) said they will reduce gas per liter prices by 70 centavos, from its prevailing rate of P46.95 per liter according to the Department of Energy’s (DOE) oil monitor.

The three oil companies will also lower diesel per liter prices by 65 centavos, which has a prevailing price of P29.80 per liter.

Shell and Seaoil, on the other hand, will cut kerosene prices by P65 centavos per liter.

PTT Philippines will move prices at 6 a.m. on July 7, while PSPC and SPI will change rates at 12:01 a.m.

Last week Energy Undersecretary Zenaida Monsada revealed there was an expected rollback on Tuesday due to the continuing fuel oversupply in the global markets and the uncertainty on the Greek referendum for another euro bailout. PNA

shell depleting fuel stocks in pandacan oil depot

E-trike fever Officials of Barangay Bagong Nayon in Antipolo City have acquired an electricity-powered tricycle for the use of village watchmen in their patrol duties. Environmentalists say electric vehicles are not only economical but also effective and ecology-friendly mode of transportation. PNA

Phoenix Semiconductor to spend P7.74B for Clark facility expansion

L

isted semiconductor giant Phoenix Semiconductor Philippines Corp. (PSPC) is spending P7.74 billion to expand its manufacturing facility for memory chips at Clark Freeport in Pampanga that aims to further boost its capacity.

In a disclosure to the Philippine Stock Exchange, PSPC said the construction of the Phase 2 of the manufacturing plant which will cater to non-Samsung global customers is expected to start in the latter part of 2015.

“Negotiations with a number of [smartphone makers] customers are currently on-

going,” it said.

The company’s existing Phase 1 facility is dedicated for Samsung, its sole customer as an outsourced semiconductor assembly and test service, which provided majority of the machine and equipment as its supply chain partner.

PSPC has also recently completed the installation of a semi-automatic blister pack production line in its existing plant which is a packaging line for its complete array of secured digital flash memory products for Samsung. PNA

Pilipinas Shell Petroleum Corp.

(PSPC) said it will try to meet the Pandacan oil-depot exit deadline set by the Supreme Court (SC) by November, which the company will comply with through its depletion of leftover fuel stocks, its President Ed Chua said. ”We’re trying to meet the deadline set by the Supreme Court sometime November,” Chua told reporters in a chance interview.

He noted PSPC started demobilizing upon receiving the order early May or April, adding that the company has complied by depleting its stock since it does not have another storage facility in Metro Manila.

Chua added the new scenario, with Shell supplying fuel from its Batangas facility, will bring new challenges. ”It is very challenging. Because if the fuel supply will come from Batangas and there is a broken bridge. That would be very challenging,” Chua said.

In March Shell said it will study the implications of the SC decision and review its available options but assured it will observe the rule of law.

A huge portion of the Pandacan lot is owned by PSPC, while the other parts are owned by the Philippine National Oil Co. and the National Development Council.

But Chevron Philippines Inc. and Petron Corp. had also stored fuel in the depot, with Chevron leaving the facility on June last year. PNA

Economy BusinessMirror

news@businessmirror.com.ph

NG raised spending by P2B in April, DBM’s Abad says

T

he Department of Budget and Management (DBM) said the national government (NG) has raised spending by more than P2 billion in April year-on-year with the releases of benefits due government workers, including police and military personnel.

The DBM disbursement report said spending for personnel services (PS) grew by 1.2 percent as of April this year, to P188.8 billion from P186.5 billion compared to the same level last year.

The increase was “boosted by releases to cover the salaries and allowances of new law-enforcement positions in the Department of the Interior and Local Government (DILG) and filled-up positions in Department of Education.”

“The DBM has implemented measures to clear the bottlenecks and structural weaknesses that contributed to the government’s underspending in 2014,” Budget Secretary Florencio B. Abad said in the DBM disbursement report for April 2015.

He said the DBM has ensured that the majority of agency allotments were released at the start of the year, with 84 percent of the total obligation program released by end-April, comparing favorably to the rates of 73 percent in 2013 and 80 percent in 2014.

Abad said the 5.5 percent increase of NG spending year on year should improve “to fire up the economy further.”

The budget chief has urged agencies and departments to continue to work with the DBM in resolving issues that recur in procurement and project implementation.

“This way, the government can keep a better pace with its spending targets,” Abad said.

The DBM disbursement report also said that Maintenance and Other Operating Expenses as of April outperformed 2014 figures by 16.9 percent, driven by expenditures on social protection programs such as Conditional Cash-Transfer Program of the Department of Social Welfare and Development and the Emergency Shelter Assistance program for victims of Supertyphoon Yolanda.

He also said that NG spending on Infrastructure and other capital outlays also increased in April by 40.3 percent.

Disbursements of Department of Public Works and Highways showed significant improvement in non-cash allocation (NCA) in April 2015 to 77.7 percent from 54.5 percent in the same month in 2014.

Boosting inclusive growth

President Aquino has stressed the importance of intensifying the implementation of programs to “further bolster the foundations for sustainable and inclusive growth and progress for all Filipinos.”

In a statement issued on Monday, Communications Secretary Herminio B. Coloma Jr. said that “in a special Cabinet meeting this [Monday] morning, the President called the attention of the Cabinet on the recent sidebar report in the June 15 edition of TIME Magazine Asia, which showed the Philippines as having the highest number of citizens saying they were optimistic on finding jobs at 66 percent.

The country was followed by the US with 51 percent; India, 34 percent; Venezuela, 22 percent; Sudan, 18 percent; and Italy, 3 percent.”

“The report, which cited a Gallup poll covering 130 countries, asked citizens’ opinions on local job opportunities, mirrors a similar survey of the Social Weather Stations in March 2015, which shows that the number of Filipinos expecting their personal quality of life to improve or net personal optimism at a ‘very high’ rating of +37 percent—the highest since 1987. In the same survey, net optimism among Filipinos about the Philippine economy was recorded at a ‘high’ of +6 percent,” Coloma added.

“The President, who is known for his keen observation of the latest economic trends, said these surveys firmly attest to the efficacy of the economic and social reforms of the administration that have resulted to a rapidly expanding job market and a decline in unemployment rate, which was recorded at 6.6 percent as of January 2015,” he said.

Estrella Torres with PNA

PHL included in five-year road-safety program of Bloomberg Philanthropies

By Paulene San Miguel Special to the BusinessMirror

S

TARTING this year, the Philippines will undergo a five-year program on road safety to address reports of traffic-related injuries as one of the major public-health issues in the country.

Based on available data, 90 percent of road-traffic deaths occur in low and middle-income countries like the Philippines.

“Each death from road-traffic crashes is a personal tragedy. No family is ever prepared for the news of a sudden and violent death,” said Dr. Julie Lyn Hall, Philippine representative to the World Health Organization (WHO).

She added that every hour, one Filipino dies from road-traffic crash, as the number of fatality continues to increase every year.

The key risk factors in roadtraff ic crashes are speeding, drinking and driving under the influence of alcohol or drugs, and nonuse of motorcycle helmets, car seatbelts and child restraints, according to the WHO. In the Philippines alone, 10 percent of road-traffic injur y cases are due to drunk driving, whose common victims are motorcyclists and pedestrians.

By 2030 an increase of about 65

percent from the projected 1.24 million fatalities and 20 million to 50 million injuries due to roadtraffic crashes are bound to happen unless addressed, based on the report by WHO and World Bank dubbed “World Report on Road Traffic Injury Prevention.”

The WHO will provide guidance on how to handle the aforementioned road traffic key risk factors, and will assist in improving data collection and monitoring progress by the use of global status reports.

With the assistance from local sectors, such as the Department of Transportation and Communications and the Department of Health and other non-governmental and private sectors, the Philippines will strengthen its road-safety legislation to reduce fatalities and injuries caused by road-traffic crashes.

The Bloomberg Initiative Global Road Safety Programme is pioneered

by Bloomberg Philanthropies, a US-based foundation, to provide technical support in reviewing and strengthening road-safety legislation to chosen countries from this year until 2019.

Currently on the second phase of the program the Philippines, together with China, Thailand, India and Tanzania, will be funded with a total of $125,000.

Tuesday, July 7, 2015 A5

Completion of Malaya Unit 1 plant rehab boosts power reserve in Luzon–PSALM

S

By Lenie Lectura

TX Marine of Korea has finally completed the rehabilitation of Unit 1 of the Malaya Thermal Power Plant Complex (MTPP), the Power Sector Assets and Liabilities Management Corp. (PSALM) said.

“It was completed last week,” PSALM Officer in Charge and Vice President for Finance Lourdes Alzona said on Monday, adding that “testing and commissioning, in coordination with NGCP [National Grid Corp. of the Philippines]” was done, also on Monday.

The MTPP consists of two units.

Unit 1 is a 300-megawatt (MW) unit with a once-through type boiler, while Unit 2 is a 350 -MW unit, fitted with a conventional boiler. The power facility was last rehabilitated in 1995 by the Korea Electric Power Corp.

under a 15-year rehabilitate-operatemanage-maintain agreement.

Now that Malaya1 has been rehabilitated, the entire power facility can run at its full capacity of 650 MW. “There will be an additional 300 MW to be used as reserved. Malaya, being a must-run plant, operates at time of plant outages, Malampaya in particular,” Alzona added.

The Department of Energy earlier designated the MTPP as a must-run unit in order to address any instability or supply deficiency that may occur as a result of sudden unavail-

ability of any of the operating power plants in the grid.

The rehab should have been finished on March 3, or within 90 days from issuance of the Notice to Proceed to STX Marine, which bagged the contract with P80.63-million bid offer.

The delay dragged on because major parts of the facility sustained extensive damage and STX Marine had to send parts to Korea for repair.

The plant’s previous contractor, Salcon Power Corp., was the one that suggested that an overhaul must be done to address the cause of excessive vibration.

The overhaul covers the replacement of air-preheater intermediate and cold-end heating elements; major inspection of automatic voltage regulator; prevention maintenance of distributed control system; overhauling of circulating water pump; among others.

STX Marine is also the current operation and maintenance contractor for the facility. However, its contract is set to expire in September this year. As such, the PSALM

has started the bidding process for MTPP in Pililla, Rizal.

The contract is good for a year, and the state firm has approved a budget of P457.3 million, which will be sourced through its 2015 and 2016 Corporate Operating Budgets.

Interested bidders can already purchase a complete set of the bidding documents from PSALM office for P50,000.

The PSALM has scheduled a prebid conference on July 17, while submission of bids is set on July 29. The opening and evaluation of bids will follow thereafter.

Prospective bidders for the Operations and Management Service Contract will be subjected to open competitive bidding procedures using nondiscretionary “pass or fail” criterion in accordance with Republic Act 9184, the Government Procurement Reform Act. “Through this procurement project, PSALM hopes to ensure the continued maintenance and operation of the Malaya TPP as a security plant for the Luzon Grid,” Alzona added.

FARM TOURISM

Lucban, Quezon Mayor Celso Dator (right) tours Sen. Cynthia A. Villar (left), chairman of the Senate Committee on Agriculture and Food, to an agritourism site in Lucban town over the weekend. Villar has been advocating farm tourism, which she notes will revive the “glorious days” of the agricultural industry. PNA

briefs creation of training school for linemen pushed A lawmaker is proposing to establish a training center for linemen to address the shortage of linemen in the power-utility sector.

Party-list Rep. Edgardo R. Masongsong of 1 CARE said the establishment of the Lineman Training Academy of the Philippines under House Bill 5734 would create a pool of skilled workers to work and serve in the country’s power industry.

Masongsong said the inadequate number of linemen to carry out repair works, especially after disasters is a serious concern that needs to be resolved.

“Being one of the world’s most disaster-prone countries, the Philippines has been constantly confronted with intermittent power shortages,” Masongsong said.

The shortage of linemen to carry out the repair works aggravates the vicious cycle of delayed repair and construction of transmission and distribution lines, according to Masongsong.

He said although there is a growing demand for this type of profession, it has not been met by increasing the number apprenticeship programs available.

dswd to release p404.9m for western visayas pensioners ILOILO CITY—The Department of Social Welfare and Development (DSWD) will soon be releasing a total of P404.9 million for the social pension of elderly in Western Visayas.

DSWD records show that the highest chunk will go to Iloilo province with P141.3 million; Negros Occidental, P93.8 million; Capiz, P54.7 million; Aklan, P51.3 million; Antique, P48.7 million; and Guimaras, P14.9 million.

The government fund will go to a total of 67,499 senior citizens who are 65 years old and above. The social pension is the monthly stipend amounting to P500 to augment the daily subsistence and other medical needs of indigent senior citizens.

It is in line with the fulfillment of the obligation of the government to protect the most vulnerable sector through social protection, and for the full implementation of the Republic Act 9994.

The social pension is implemented with the objective to improve the living condition of eligible indigent senior citizens.

Specifically, it aims to augment the capacity of indigent senior citizens to meet their daily subsistence and medical requirements; reduce incidence of hunger among indigent senior citizens; and protect indigent senior citizens from neglect, abuse, or deprivation. PNA

Delivery of new steel railways sets rehab for MRT 3 tracks

By Regina Coeli T. Aquino Special to the BusinessMirror

T

HE Metro Rail Transit (MRT) Line 3 will undergo another round of rail rehabilitation as another batch of brand-new steel rails were recently delivered to the Department of Transportation and Communications (DOTC).

The 7,296-lineal-meter-long rails will be used to replace the line’s worn-out segments as part of the DOTC’s thrust to improve the Edsaplying train, which bogged down several times this year due to defective and worn-out rails.

The schedule for the installation of the recently delivered rails is yet to be announced, but it will more likely be conducted during nonoperating hours in order to avoid any disruptions to the rail line’s services, according to a statement released by the DOTC. The DOTC and the MRT 3 management have implemented critical rail rehabilitation earlier this year.

Stabling rails, which are the tracks located within the MRT 3 depot designed for parking purposes facilities, the 348-meter rail between the Magallanes and Taft Avenue stations and another 126 meters between the Santolan and Ortigas stations were replaced.

Apart from this, maintenance projects for six other components of the MRT 3 began on Sunday.

These are rolling stocks, depot equipment and signaling; rail tracks and permanent ways; buildings and facilities; power supply and OCS; communications systems; and ticketing systems.

The DOTC also reported the arrival of the prototype for 48 new lightrail vehicles for MRT 3 by mid-August.

This will lead to the delivery of three train coaches per month, which was rescheduled to late January 2016, a quarter-period delay from the original October target.

The agency has also awarded the contract to rehabilitate the first batch of the railway line’s escalators. It is expected to be completed six months after the project proceeds.

Opinion BusinessMirror

A6 Tuesday, July 7, 2015

editorial

Europe is in big trouble

T

he overwhelming rejection by the Greeks of the lending conditions imposed by the International Monetary Fund, the European Central Bank and the European Union (EU) for additional funding for Greece is only one of Europe’s problems.

The “Greek Problem” is only a symptom of monumental failure of trying to bring European countries under a single government. Europe tried to base the concept of an EU on the formation of the United States failing to remember that union took place more than 200 years ago by sovereign states that were unified by common self-interest. Further, the economic inequality between nations, such as Germany and Greece, insured that there would be an inequality of power unlike during the formation of the US. The EU is facing an increasing climate of destabilization, as Greece has asserted its independence from the EU central government and its financial institutions. But Greece is joined by the United Kingdom, which is not so united anymore. While the UK is not part of the euro currency scheme, it is a part of the EU and is coming close to reducing its ties to the EU. Brussels, the seat of the EU government, has attempted to unify a massive amount of standardized rules and regulations, crossing national borders, which have, in effect, reduced individual national sovereignty.

The continuing battle with Russia has also divided the EU. The economic sanctions against the Russian Federation came at the insistence of the United States. But those sanctions have had insignificant economic impact on the US, whereas many European countries have suffered more than Russia. Food exports to Russia have been all but suspended, hurting EU farmers. German manufacturing is down because of exports to Russia being curtailed. And here again, the negative effects of the sanctions have brought unequal suffering to EU countries.

Perhaps the greatest problem for the EU is that, in its effort to give a semblance of democratic equality, each nation has a vote and veto power over major decisions. The economic sanctions against Russia require unanimous consent. With the relationship between Greece and the EU extremely rocky right now, Greece may veto the continuation of sanctions against Russia when the issue comes up again in the near future.

The current focus is, of course, on Greece. But the much wider issue is how much are the EU nations willing to give up protecting their own self-interest in favor of protecting the EU and the self-interests of the other members?

The EU experiment has proven that the needs and goals of the sundrenched countries on the Mediterranean Sea may not be the same as of those countries on the ice-filled waters of the Baltic Sea. That is a big problem.

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High GDP growth: Govt has the ball Manny B. Villar

THE Entrepreneur First of two parts

I

t is said that in solving a problem or confronting a challenge, identifying the cause is already halfway through its solution. So there’s a positive way of looking at the slowdown in economic growth last year and at the beginning of 2015.

The Philippines has been touted as “Asia’s rising star” because of robust growth in recent years. The 7.2-percent growth in 2013 made the country the second-fastest-growing economy in Asia Pacific after China, and the fastest among the major economies of the Association of Southeast Asian Nations (Asean).

In 2014, however, growth in terms of gross domestic product (GDP) slowed down to 6.1 percent, lower than the government’s target of 6.5 percent to 7.5 percent. The slowdown was attributed to government underspending.

The slowdown continued in the first quarter of 2015, when GDP grew by 5.2 percent, down from 6.6 percent in the fourth quarter of 2014 and from 5.6 percent in January-March 2014.

Government spending on public goods and services totaled P504 billion for the first quarter of 2015, about

13 percent short of the P582.2-billion spending goal.

Public construction during the first quarter of 2015 dropped by 24.6 percent to P56.37 billion compared with P73.93 billion in the same period in 2014. In contrast, private construction increased by 16 percent to reach P279.3 billion compared with P240.6 billion in the first quarter of 2014.

Following the release of the GDP report for the first quarter, the economic managers admitted that the slower-than-expected growth was due to government underspending, particularly on infrastructure.

In fairness, the slowdown in GDP growth was also partly due to the lackluster performance of the export sector. Merchandise exports dipped by 0.2 percent to $14.25 billion in the first quarter of 2015 from $14.28 billion a year ago.

The government is maintaining its full-year growth target of 7 percent to 8 percent for 2015 and 2016. Accelerating spending, particularly on infrastructure, is crucial in the remaining quarters of 2015.

President Aquino, according to a statement from Communications Secretary Herminio B. Coloma Jr., directed the executive departments to accelerate the implementation of their respective spending programs to boost economic growth.

In other press reports, the Department of Budget and Management (DMB) gave assurances that government spending would increase in the second half of the year.

Last month the Department of Finance delivered a positive report: Public spending for infrastructure and capital outlay increased by 40 percent to P23.3 billion in April. The amount brought to P91.9 billion the total infrastructure disbursements for the first four months of 2015.

The DBM noted that the Department of Public Works and Highways, the primary agency that implements infrastructure projects, showed significant improvement in funds utilization, from 54.5 percent in April 2014 to 77.7 percent in the same month this year.

Still, the Philippines has to work harder. According to the World Bank’s 2014 Logistics Performance Index (LPI), Philippine infrastructure is the worst among the six Southeast Asian nations, including Singapore, Vietnam,

Welcome to the third quarter John Mangun

OUTSIDE THE BOX

G

reece is really a small, barely significant country with a population of 11 million and makes up about one-and-a-half percent of the total annual European Union (EU) economic activity. In 2010 Greece was the EU’s largest producer of cotton and pistachio nuts. This is not a country that you would normally expect to be constantly on the front pages of the global newspapers.

Perhaps, though, it is appropriate that a small country like Greece would be at the forefront of the “Big Bang” that is going to hit the global economy and markets at the end of this quarter.

The idea that “If you take care of the small things, the big things will take care of themselves” applies here. Since the 13th century, there has been a reoccurring message about a king and a horseshoe nail. “For want of a nail the shoe was lost; For want of a shoe the horse was lost; For want of a horse the battle was lost; For the failure of battle the kingdom was lost.”

The debt default by and the subsequent decision of Greece to abandon the lending requirements of the EU may be the lost shoe nail that leads to the destruction—or at least major change—of

the EU. However, in the larger picture, it is apparent that this event may be the first step as we march to what Martin Armstrong calls the “Big Bang” at the end of September.

The cycle of change between confidence in the private sector and confidence in the public sector—government—is about to switch. This change is going to create political and social upheaval as politicians, governments, and their corporate sponsors lose the people they both serve and exploit.

The Greek voters telling their government that they will no longer be subject to economic control of the EU has been spun many ways. “Greece has learned there is no free lunch.” “They deserve what they got.” “This is what happens when you repeatedly elect a socialist

government.” That all may or may not be true, but it misses the more important bigger picture.

Greece joined the EU in 1981, and adopted the euro currency in 2001. The people were promised by their politicians that this would lead to increased prosperity. The EU accepted Greece even if any accountant with half a brain knew that Greece was faking its fiscal and economic numbers to qualify for membership and to be part of the euro-currency mechanism. Since that time, the Greek government has only been a proxy for the real rulers of Greece; the EU, the European Central Bank and the International Monetary Fund. But the Greeks had continuing confidence in “government.” That all changed this past Sunday. The Greek voters overwhelmingly voted their lack of confidence.

China is facing the same problem. The people have gone along with all the Chinese government’s promise of more prosperity. They bought real estate when they were told to do so, even while there was an obvious oversupply. They bought the stock market when the government told them to, even as the entire system was rigged for stock-price increases based only on government manipulation.

Now with the Shanghai stock-market crashing, investors are panicking.

The Chinese government has resorted to extraordinary intervention and manipulation to stop the fall. But, at some

Indonesia, Malaysia and Thailand.

Infrastructure is one of the components of the LPI, which measures the on-the-ground efficiency of trade supply chains, or logistics performance.

The other components are customs, international shipments, logistics quality and competence, tracking and tracing and timeliness.

The 2014 LPI ranked the Philippines No. 75 among 160 countries and the lowest among four peers in the Asean. Malaysia is ranked 26th, Thailand 30th, Vietnam 44th and Indonesia 56th. Among the numerous economic indicators, investors generally look first at a country’s GDP growth when they evaluate the opportunities for investing. If GDP growth rate is high, the perception is that the economy is doing well.

For the Philippines there are two reasons high GDP growth is important: 1. High GDP growth will allow the benefits of economic gains to trickle down to the poor segment of the population; 2. High GDP growth encourages investments. There is no argument: 7 percent is better than 5 percent. Thus, accelerating spending is not just a solution to the slow GDP growth; it is also an opportunity to sustain and increase the benefits from economic growth.

To be continued

For comments, e-mail mbv.secretariat@gmail.com or visit www.mannyvillar.com.ph.

point, the Chinese people are one way or another going to “vote” their lack of confidence in their government.

The press, media and government leaders in the US, led by Wall Street financial institutions and the banks, have taken dishonest and false economic propaganda to a level that would make North Korea’s Kim Jong Un blush in embarrassment and scowl with envy.

Eighty-two percent of the total US government debt has been created since 2009 and is responsible for virtually all economic growth. The Wall Street Journal reports “The strongest stretch of job creation in two decades” while failing to mention that most of the jobs are in the lower paying “leisure and hospitality sector.” There are more bartenders and waiters in the US than employed in manufacturing, the first time in history. An industrial-relations professor at Clark University in Massachusetts said, “Manufacturing workers have become hamburger flippers.”

Greece is only the first nation whose citizens have made the confidence cycle change. The “Big Bang” has only just begun.

E-mail me at mangun@gmail.com.

Visit my web site at www.mangunonmarkets.com. Follow me on Twitter @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Should we lift the cap on foreign investments?

Ernesto M. Hilario

ABOUT TOWN

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ur Asean neighbor, the Socialist Republic of Vietnam, is all set to remove by September the current 49-percent cap on ownership of many listed companies in a bid to attract more foreign direct investments (FDI).

The 49-percent restriction will continue to apply only in areas where conditions were imposed on foreign investments, except for those sectors that are regulated by separate ownership rules such as banking. Otherwise, there will no longer be any cap on all other equities, unless restricted by the firms themselves.

The lifting of economic restrictions

by Vietnam would no doubt give Vietnam an edge over the Philippines when it comes to attracting FDI. Vietnam has already overtaken the Philippines as an investment destination in the last five years. According to official data, FDI inflows in Vietnam rose from $7.6 billion in 2009 to $9.2 billion in 2014. In contrast, FDI inflows in the Philippines only amounted to $1.963 billion in 2009 but increased to $6.2 billion in 2014.

Data showed that the reversal of fortunes actually started at the turn of the century when Vietnam’s FDI inward stock surpassed that of the Philippines, $14.73 billion against $13.762 billion.

In 1990 the Philippines was way ahead of Vietnam, as its FDI inward stock totaled $3.268 billion compared to Vietnam’s measly $243 million.

But by 2014 Vietnam’s FDI inward stock already reached $90.99 billion, or over a third more than the Philippines’s $57.093 billion.

Amid this development, business leaders are saying that we should do likewise and proceed with changing the restrictive economic provisions in the 1987 Constitution.

According to Philippine Chamber of Commerce and Industry President Alfredo Yao, “Vietnam is our competitor so we have to be better than them or follow them…. If there [are] better conditions in another Asean country, foreign investors will go there unless we have a really superior economy.”

For his part, Makati Business Club Executive Director Peter Angelo Perfecto avers that Vietnam’s move “is an added plus for their competitiveness” and that “the Philippines must consider similar policy shifts that...allow us to compete more aggressively with our neighbors.”

Philippine Stock Exchange President Hans Sicat says that Vietnam’s move would give it “a potential comparative advantage over the Philippines, everything else being equal.

This may be more pronounced as Asean economic integration takes place and financial market integration also moves forward.”

With the approaching deadline for the creation of an Asean Economic Community by the end of 2015, Philippine Trade Foundation Inc. President Tony Lopa asserts that the Aquino administration should support the calls to amend the economic provisions of the 1987 Constitution by way of the recent Resolution of Both Houses (RBH) 1. By relaxing the limitations on foreign ownership, Lopa said the Philippines would be able to maximize the benefits from the Asean integration, and create much-needed jobs for the Filipino people.

Henry Schumacher, executive vice president of the European Chamber of Commerce of the Philippines, shares the concern of local business leaders, saying that the solution lies in legislation that aims to make the country as attractive as, if not more attractive than, Vietnam and Asean’s other FDI destinations.

According to Schumacher, Vietnam’s lifting of its foreign-ownership cap makes it “more attractive for foreign investors, especially in the light of a hardly improved FINL [Foreign

Investment Negative List] released

by Malacañang and the withdrawal of House Resolution 1, which supports the amendment of the economic provisions of the Constitution which, in turn, could have led to more competition in the country.”

The move to amend the economic provisions of the 1987 Charter to allow greater participation of foreigners in Philippine business has long been in the works. But the House of Representatives, led by Speaker Feliciano Belmonte Jr. led efforts to move it forward through a resolution that would pave the way for removing restrictions or caps as embodied in seven constitutional provisions.

These provisions are: (1) Section 2, Article XII on exploration, development, and utilization of natural resources; (2) Section 3, Article XII on alienable lands of the public domain, including agricultural, forest or timber, mineral lands and national parks; (3) Section 7, Article XII on conveyance of private lands; (4) Section 10, Article XII on reserved investments; (5) Section 11, Article XII on grant of franchises, certificates, or any other forms of authorization for the operation of public utility; (6) Section 4 (2), Article XIV on ownership, control and administration of educational institutions; and (7) Section 11 (1 and 2), Article XVI on ownership and management of mass media and on the policy for engagement in the advertising industry.

Alongside poor infrastructure, a high tax regime, an unstable peace and order situation and an unpredictable policy climate marked by the government’s tendency to change rules in midstream and flout its contracts with private partners, one more thing that has turned off the business community is a fundamental law that is overly protective of local businesses.

The protectionist provisions of the 1987 Charter, particularly the 60-40 rule that pegs a 40-percent cap on foreign ownership, is an obstacle to further economic growth and attracting more foreign investments when globalization has led to an increasingly borderless world.

The Philippines should follow Vietnam’s move if it really wants to overtake it—as well as our other vibrant neighboring economies—as the region’s No. 1 investment hub.

The RBH 1 seeks to open the Constitution to amendments lifting foreignownership caps for businesses by inserting the phrase “unless otherwise provided by law.”

The inclusion of this five-word phrase means that amending the Constitution would only require a simple legislation that needs to be approved by both the Senate and the House— and then subjected to a plebiscite.

Unlike ordinary legislation, constitutional amendments require an absolute three-fourths vote by both Houses of Congress.

Hence, for RBH 1 to move on to a plebiscite, it needs to muster at least 217 votes in the 289-member House and at least 18 votes in the 24-member Senate. But once approved by Congress, RBH 1 does not have to be signed

by President Aquino into law like the regular enrolled bills passed by both chambers, because it needs only to be ratified through a plebiscite synchronized with the 2016 polls.

Both the House of Representatives and the Senate can still pass RBH 1 as the 16th Congress will have seven working months left to do so from the time its third and final regular session opens in July till it ends in February 2016.

E-mail: ernhil@yahoo.com.

Los Ultimos de Filipinas Edgardo J. Angara

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ast week my hometown Baler played host to the country’s 13th celebration of Philippine-Spanish Friendship Day on June 30.

The day officially commemorates General Emilio Aguinaldo’s decree that the Los Ultimos de Filipinas—the Spanish soldiers who fought the katipuneros and were besieged inside the Baler Church by the katipuneros—be treated as friends rather than prisoners. They were given safe passage back home to Spain, where they were received as heroes.

On the other hand, Aguinaldo demonstrated civility and magnanimity in a time of conflict. Such moment in history is worth celebrating—where there was no victor or loser.

The Philippine-Spanish Friendship Day Act, the law I authored and sponsored in the Senate (Republic Act [RA] 9187), had helped rekindle relations between the Philippines and Spain,

and deepen bilateral cooperation on trade, tourism, investments and development aid.

The Spanish Parliament reciprocated by passing a Resolution of Gratitude and Friendship to the Philippines.

After RA 9187 was enacted, the Spanish Senate and the Philippine Senate agreed to exchange regular parliamentary visits to discuss topics of mutual interest. The most recent was in January where the Spanish Parliament’s Commission on Foreign Affairs paid its first visit to the Philippines, meeting high-ranking officials, such as Vice President Jejomar C. Binay, Senate President Franklin M. Drilon, and House Speaker Feliciano Belmonte Jr. In education, we entered into

Tuesday, July 7, 2015

academic exchange agreements with different universities in Madrid and the Basque Country. And Spanish was reintroduced in 2010 in the high-school curriculum under the Special Program in Foreign Languages. Under the program, almost 100 teachers from public high schools have undergone intensive Spanish-language training at the Instituto Cervantes.

During last week’s celebration in Baler, Spanish Ambassador Luis Antonio Calvo said that up to 8,000 students across 80 high schools in 17 regions are participating in this program today. There are now five centers of excellence around the country where up to 200 Filipino teachers are being trained as trainers for future Spanish-language instructors.

Such a critical mass of Spanishspeakers opens up our thriving contactcenter industry and other industries to the Spanish-speaking world, covering 31 countries and up to 399 million people, and to their world of arts and literature.

Yet, the biggest windfall to the rekindling of Philippine-Spanish ties may come from trade. In 2007 nine bilateral agreements on economic and cultural cooperation were signed, including one earmarking up to P9.2 billion worth of investments in the Philippines.

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Last year the European Parliament approved the Philippines’s inclusion in the European Union’s Generalized Scheme of Preferences Plus (GSP+), which allows the Philippines to export some 6,200 products—including fruits, coconut oil, fish and textiles—to EU countries at zero tariffs. Some estimate that within the first year of GSP+ implementation, Philippine exports to the EU could increase by up to P32.5 billion, translating to as much as 267,000 jobs.

We would not have clinched such a clear boost to our national drive for inclusive growth if it weren’t for Spanish MEPs who provided the winning margin to the Philippines’s bid.

These positive developments (and more) may not have happened if Philippine-Spanish relations were not reinvigorated. In fact, many points of collaboration have yet to be pursued actively, such as tourism, sports development, design and construction, and transportation and power.

Clearly, opportunities (and challenges) abound for each. And just as it was during the days of the Galleons, the Philippines and Spain could again be the lynchpins of global trade.

E-mail: angara.ed@gmail.com.

A strategy of governance for the next 6 years Michael Brown

The Brown Platform Conclusion

Communication

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O be effective, the government must keep the public informed of its activities, programs and policies, and citizens must be able to communicate their concerns to all levels of government with ease. With accurate information, the public can make better choices during elections, will be more supportive of government initiatives, and will generally be more content with the national leadership.

In an environment where people do not know their rights and entitlements, and where they don’t know what the government is required to do, corruption and abuse thrive and isolated communities are easily controlled by antigovernment elements, criminals and crooked politicians. A system must be developed to effectively link the national government with every municipality in the country.

This should not require additional infrastructure or budget. The issue is more procedural than physical.

Armed with knowledge and information available through such a system, citizens will be better able to defend themselves against corrupt officials and will be more likely to report wrongdoing.

Rumors, which sow confusion and discontent, can be properly dismissed and replaced with facts.

The Philippines’s official Internet domain, www.gov.ph, is a wonderful source of information and links to many government agencies, and it represents a tremendous leap forward for the country.

But it is only the first step in the use of the Internet as a portal through which government can communicate with every citizen in the nation, and vice versa.

Communicating with Philippine government agencies through the Internet

is currently a hit-and-miss proposition.

Most agencies and local governments maintain some form of Internet presence, but there is little uniformity. Some use an official gov.ph domain name, while others use Facebook or a commercial “dot com” address.

In some cases, the only way to communicate with a local government unit is through the mayor’s personal Facebook account, or personal Gmail or Yahoo! e-mail address. Government agencies and officials rarely reply to e-mail communications. This creates the notentirely-incorrect perception that the government is not responsive to its citizens’ requests and demands.

Professionalizing the government’s Internet presence is an important step toward professionalizing the Philippine government itself.

All government entities, down to the municipal level, must be required to maintain an official web site, under the gov.ph domain, containing specific mandatory information and communication channels. Uniformity is critical, and each of these sites should follow a standard format, designed to be easily maintained, and easily navigated.

This does not require specialized software, special training, or additional

budget. It simply requires a policy and enforcement.

With a predesigned format distributed by the national government, every community with Internet access can have its web site up and running in a few hours at most. A few minutes each day, or even each week, is all it takes to update the information on the site.

Some examples of information that should be published on these sites include: n Fiscal records; n Legislative agendas and updates; n Progress reports on projects, including photographs; n Transparency information on government tenders and bids; n Attendance records for elected and appointed officials; n Schedules and minutes of meetings and hearings; n Crime statistics and records; n Fees, requirements and procedures for all government services; n Bulletin boards advertising government and private job openings; n Anonymous corruption-reporting links; n Complaint and issues reporting links; n E-mail links to allow citizens to communicate easily with all levels of government; and n Links to other government web sites.

Government officials must be required to reply to all citizen communications, whether received by e-mail, letter, or telephone. They must also be required to provide a tracking number a) as proof of receipt, and b) to provide a reference for follow-up. Requiring government officials to acknowledge and log citizen communications will dramatically improve their accountability to the public.

Most of the information listed above is information that each government office already maintains—or is supposed to maintain. Requiring them, by law, to post their facts and figures on a publicly accessible web site in a standardized format will force them into a

Clarification on toxic fish report MAIL

Please e-mail your letters to the editor to opinion@businessmirror.com.ph.

Letters chosen for publication in this section are edited for brevity and clarity.

I am writing to file a complaint on a news article that was published online in your web site dated June 15, 2015. The article, entitled “Laguna de Bay’s woes worsen as lake now harbors toxic fish” and written by Marvyn N. Benaning, presented incorrect and

misleading information (about my studies on Laguna de Bay). To wit: n That “eating carp and other fish harvested from Laguna de Bay may be dangerous to your sex life”; n That my research studied “the impact of E2 on the feminization of bighead carp and other fish species in Laguna de Bay”; n That the estrogen polluting the lake “was the main reason why male fish eventually lost their testes”; n That I and my research team “theorized that the same effects could visit [sic] humans who consume fish laced with E2”; and n That at the E2 levels present in the lake “the fish population would be affected since only females would survive.”

Attached is a copy of my journal article, “Vitellogenin induction and gonad abnormalities in male common carp (Cyprinus carpio Linnaeus)

introduced to Laguna de Bay, Philippines,” which Benaning referred to in his news item. You may notice that it did not explicitly state nor suggest the ideas floated by Benaning. With regard to the research project “Food safety implications of contaminated fish in coastal communities in Laguna de Bay,” our report is still undergoing technical review by Southeast Asian Regional Center for Graduate Study and Research in Agriculture and has yet to be published.

Likewise, the above-mentioned statements have not been stated nor suggested by me in the various scientific fora where I have had the opportunity of presenting my research results. I have always reiterated the importance of conducting further research to determine the effect of 17ß-estradiol (E2) in fish populations in the lake, all the more its impact in fisheating communities. As veterinarians

new level of accountability. This forced transparency will also introduce a new check-and-balance element into government operations. Local citizens will be able to spot discrepancies between the posted information and the reality on the ground. The system will also help keep reports to higher headquarters accurate and factual. Higher headquarters can even use these web sites to receive and collate reports and statistics with almost real-time accuracy. Reporting data that is already two to three years old must become a thing of the past.

Leadership

THE Philippines has the potential to be a great country. To be honest, it should have been a great country long ago. But in truth, the Philippines is its own worst enemy—an animal that eats its own children. Although it is possible for a Filipino to lift himself up, the truth is, the Philippine “system,” through its inefficiency, waste and corruption, keeps him in poverty.

What the country lacks, and has always lacked, is system-wide professional management. A strong leader takes control, and requires the entire management corps, from top to bottom, to do the same. A strong leader does not compromise ethics and does not tolerate poor performance. A strong leader enforces the law, with a management team based purely on qualification and ability, ignoring friendship and patronage. A strong leader knows that the difference between corruption and honesty is really nothing more than a conscious choice.

Six years may not be enough time to solve all the ills that plague the Philippines, but if used wisely and professionally, it is more than enough time to create a rock-solid foundation upon which a new, great nation can rise.

A foundation that cannot be “undone” by any succeeding administration.

Michael Brown has lived over 16 years in the Philippines. He writes on English, traffic management, law enforcement and more recent, the government. Follow him on Twitter at @M_i_c_h_a_e_l.

whose studies mainly involve animals, the extrapolation of our research results to humans is difficult and should always be carefully considered.

Benaning could have gotten in touch with me to confirm these statements or to give light to his queries. However, he has failed to do so. I hope he understands the social and economic implications that his news article has raised. My coresearchers and I are saddened that our findings have been sensationalized and used for politicking.

I hope that you will take appropriate action to rectify these mistakes.

Dr. Michelle Grace V. Paraso Chairman Office of the Department of Basic Veterinary Sciences College of Veterinary Medicine University of the Philippines Los Baños

2nd Front Page BusinessMirror

A8 Tuesday, July 7, 2015

NO HEARING ON INCENTIVES RATIONALIZATION BILL UNTIL TIMTA HAS PASSED BICAM

By Jovee Marie N. de la Cruz

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awmakers will not act on the rationalization of fiscal incentives (RFI) bill until the proposed Tax Incentives Management and Transparency Act (Timta) has hurdled the bicameral committee.

Liberal Party (LP) Rep. Romero Quimbo of Marikina City, chairman of the House Committee on Ways and Means, said members of the bicam are eyeing to meet in August to reconcile the approved versions of the proposed Timta of the lower and the upper chambers.

“We will wait first for Timta [to be passed at the bicameral committee]; we want one battle at a time. I think this Timta is [already] a major step.

Timta is a rehearsal to fiscal incentives so we will see first how it will proceed,” Quimbo said.

The measure seeking to promote transparency and accountability in the grant and administration of tax incentives to business entities, private individuals and corporations will be signed into a law before the year ends, the lawmaker said.

The lower chamber’s Timta consolidated bill, House Bill 5831, principally authored by LP Rep. Ma. Leonor Gerona-Robredo of Camarines Sur, will be merged with the Senate version prepared by the Senate Committee on Ways and Means, with Senators Franklin Drilon, Ralph Recto and Juan Edgardo Angara as authors.

Still, Quimbo is confident that the RFI bill will also be passed before the 16th Congress ends in June next year.

Quimbo has said the Joint Foreign Chambers and Philippine business groups

have expressed concern for the passage of RFI. “They expressed concern over fiscal incentives rationalization. But I gave them assurance that the fiscal incentives rationalization bill we will pass shall be something that will make our investment climate more attractive and not the contrary,” the lawmaker has said.

The RFI bill, currently under committee deliberations, has been facing strong opposition from business groups due to its provisions, particularly the lifting of the tax- and duty-free incentives of several industries.

Under the RFI draft bill submitted by the Department of Finance (DOF) and the Department of Trade and Industry (DTI) to the House Committee on Ways and Means, companies registered with the Philippine Economic Zone Authority (Peza) are given two options in the measure.

They can opt for a four-year income tax holiday with either 5-percent tax on gross income earned (GIE) in lieu of local and national taxes, except valued-added tax (VAT) and real property tax (RPT) for 11 years; or 15-percent reduced tax on corporate income in lieu of local and national taxes, except VAT and RPT for 11 years, the bill said.

Peza-registered companies, under the second option, are given the choice of either 5-percent GIE for 15 years, in lieu of local and national taxes, except VAT and RPT for 15 years, or 15-percent reduced tax on corporate income in lieu of local and national taxes, except VAT and RPT for 15 years.

According to Quimbo, his panel is still studying the RFI version of the DOF and DTI, as well as the four bills filed in the lower chamber.

www.businessmirror.com.ph

Cabinet approves proposed ₧3.005-T budget for 2016

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By Butch Fernandez

he Cabinet, at a special meeting on Monday, approved the proposed P3.005-trillion budget for 2016, a figure that is estimated to be P402 billion higher than the 2015 outlay of P2.603 trillion.

President Aquino presided at the presentation of what is to be his administration’s last budget, during which heads of agencies gave their inputs on what it takes to ensure key reforms and programs are sustained.

The 2016 proposed budget will be presented to Congress soon after Mr. Aquino delivers his final State of the Nation Address when Congress reconvenes in a joint session on July 27.

Palace officials, however, gave no other details on the Cabinetapproved budget for the various departments, bureaus and agencies under the national government.

The administration has retained its growth targets for 2015 and 2016 at 7 percent to 8 percent, although for 2016, the government views the upper end of the gross domestic product goal as a “challenge.”

The Cabinet also wants a bor-

rowing mix of 85 percent from local sources and 15 percent from foreign loans.

During the special Cabinet meeting, Mr. Aquino also called the attention of the department secretaries on a recent sidebar report in the June 15 issue of TIME Magazine Asia listing the Philippines as having the highest number of citizens saying they were optimistic on finding jobs at 66 percent.

Time Magazine reported the Philippines was followed by the US at 51 percent; India, 34 percent; Venezuela, 22 percent; Sudan, 18 percent; and Italy, 3 percent.

In a statement, the Palace noted that the TIME report, which cited a Gallup poll covering 130 countries asking citizens’ opinions on local job opportunities, mirrored a similar survey of the Social Weather Stations in March 2015 pegging the number of Filipinos expecting their personal quality of life to

DBCC stands pat on 2015 growth goal. . .

Analysts and government economic planners alike acknowledged on Monday that the slow disbursement of public funds, in tandem with weak exports, has caused local output

growth to falter and disappoint the country’s economic architects in the first quarter. Fitch Ratings, one of the three major sovereign credit watchers, tagged the government’s inability to spend as a critical weakness and expressed apprehension the sloth-like pace of disbursement of public funds for growth-boosting infrastructure will not likely be fixed in the short term due to budget bottlenecks.

Aside from an increase in government spending, Guinigundo emphasized the rollout of the much-touted but weakly pursued Public-Private Part-

improve or net personal optimism at a “very high” +37 percent—the highest since 1987. In the same survey, net optimism among Filipinos about the Philippine economy was recorded at a “high” of +6 percent, the Palace said.

It added that “President Aquino, who is known for his keen observation of the latest economic trends, [had] said these surveys firmly attest to the efficacy of the economic and social reforms of the administration that have resulted to a rapidly expanding job market and a decline in unemployment rate, which was recorded at 6.6 percent as of January 2015.”

The Palace said that for the remaining months of the Aquino administration, the President asked the Cabinet to “intensify the implementation of programs that would further bolster the foundations for sustainable and inclusive growth and progress for all Filipinos.”

Continued from A1

nership (PPP) Program has a significant multiplier effect on the economy.

“The rollout of the PPP projects and its impact on employment and investment is a powerful boost to economic growth,” Guinigundo said.

“Growth will also be supported by robust liquidity and credit growth. Remittances and BPO [business- process outsourcing] revenues are expected to remain as strong pillars of both consumption and investments,” he added.

The DBCC also acknowledged that hitting the upper range of this year’s

growth goal should be a challenge unless Budget Secretary Florencio B. Abad is able to ramp spending while, at the same time, coordinate with such other agencies as the Department of Public Works and Highways in pushing for high-impact, growth-boosting projects and programs. The DBCC previously said next year’s growth goal of up to 8 percent should find support in the proposed 2016 budget requiring the disbursement of a little more than P3 trillion from this year’s budget of only P2.6 trillion.

Greece bracing for euro showdown after ‘no’ vote Continued from A1

The European Central Bank (ECB) is meeting on Monday to discuss extending a new lifeline to Greek lenders, which have been closed for a week under capital controls that were imposed

by Tsipras to stem withdrawals.

“Our immediate priority is to restore the Greek banking system,” Tsipras, 40, said in a speech after the result. “I’m confident that the ECB fully realizes the humanitarian side of the crisis in our country.”

Stronger position

European leaders are showing no immediate willingness to compromise. They firstly want to wait to see what proposals Tsipras will offer to keep Greece in the euro, according to a European government official with knowledge of crisis strategy. Varoufakis’s departure, which he announced in a blog post on Monday morning, may help Greece as it tries to restart talks. The Greek-Australian economist often sparred openly with his European counterparts.

The question remains whether Greece’s creditors will be willing to negotiate with a government that has rejected their conditions for staying in the 19-member currency union, after Portugal and Ireland accepted similar measures and emerged from their own bailout programs. Greece’s departure from the euro is now the most likely scenario, according to predictions from a series of banks including JPMorgan Chase & Co. Tsipras has“torn down the last bridges across which Europe and Greece could have moved toward a compromise,” German Vice Chancellor Sigmar Gabriel said in an interview with the Tagesspiegel newspaper.

Tsipras and his Coalition of the Radical Left, or Syriza, swept to power in January after campaigning to end crippling budget cuts forced upon the country by creditors and promising to restore “dignity.” Five

months of protracted and antagonistic negotiations followed, and optimism for a deal toward the end of June was suddenly damped when he called the referendum, putting an end to talks.

European leaders largely characterized the plebiscite as a vote on membership in the euro itself, although Tsipras insists Greece can stay in regardless. The country is buckling under the strain of the capital controls and at risk of undoing four decades of integration with Europe. The economy has already shrunk about 25 percent over the past six years, while the jobless rate is still the highest in the euro region.

Banks will struggle to reopen without significant new aid from the ECB, importers are concerned about paying their bills, and pension payments are being rationed. Queues at cash machines in central Athens were noticeably longer than over the weekend, as Greeks waited to withdraw the daily maximum of €60 each currently permitted by the government.

Nonetheless, the referendum result was a source of joy for many Greeks, and Syntagma Square turned into a raucous street party on Sunday as“no”supporters gathered to celebrate.

Some danced to music playing from speaker phones, while others took selfies with the crowds in the background.

Waving the white-and-blue Greek flag, John Govesis, 26, said he and his whole family voted “no.” “I like freedom, I don’t need money from Europe,” he said. “This is the only way forward. I have a job, but maybe tomorrow I don’t.”

Varoufakis has resigned, saying he was told shortly after the Greek referendum result that the other euro-zone finance ministers and Greece’s other creditors would prefer he not attend the ministers’ meetings.

Varoufakis issued an announcement saying Tsipras had judged that Varoufakis’s resignation “might help achieve a deal”and that he was leaving the finance ministry for this reason on Monday.

Varoufakis is known for his brash style and

fondness for frequent media appearances at the start of his tenure when the new government was formed in January. He had visibly annoyed many of the euro zone’s finance ministers during Greece’s debt negotiations.

The resounding rejection of an international bailout deal by voters in Greece raised fears on Sunday of the collapse of the country’s banking system, a catastrophic government default, an eventual exit from the euro and potential social unrest.

In a surprising 61 percent-to-39 percent result, Greeks said “no” in a referendum on a rescue package that would have kept their debt-ridden country afloat, but subjected it to additional austerity measures.

The landslide delivered a sharp rebuke to European Union (EU) leaders who had warned that the plebiscite was, in effect, a vote on whether Greece wanted to remain a member of the euro zone, the group of 19 nations with the euro as their common currency.

The EU is now confronted with one of the gravest challenges to its mission of “ever closer union” between member-states.

Jubilant crowds of no voters thronged Athens’s main square into the early hours of Monday to celebrate what they said was a chance for Greece to reassert itself and achieve a better deal from creditors. Motorists honked their horns, and triumphant chants of “Oxi! Oxi! Oxi!” (“No! No! No!” in Greek) rose in the balmy Mediterranean air. But there were already signs of a backlash from angry European officials that could make any new bailout agreement even more difficult.

If a deal is not struck quickly, Athens could find itself broke, forcing it to default on its debts and triggering a slide out of the euro zone.The left-wing government of Prime Minister Alexis Tsipras, which campaigned for a no victory, had “demolished the last bridge on which Europe and Greece could approach a compromise,” Sigmar Gabriel, the German economy minister, told the Tagesspiegel newspaper. Bloomberg, News , AP, TNS