BusinessMirror July 28, 2015

PNOY GETS HIGH MARKS FROM BUSINESS GROUPS

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HE business community has given the Chief Executive a near-perfect grade in terms of accomplishing economic goals at the occasion of his last State of the Nation Address (Sona), underscoring the increased competitiveness of the country during the Aquino administration. C  A

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PNOY PUSHES PASSAGE OF BBL, RFI, 2016 BUDGET

Aquino bares final list of priority bills

INSIDE

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KENYA AT ‘CROSSROADS’

RESIDENT Aquino, in his valedictory address before Congress on Monday, asked lawmakers to pass the proposed Bangsamoro basic law (BBL) and the measures aimed at rationalizing fiscal incentives (RFI) and ending political dynasties in the country.

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PRESIDENT Barack Obama waves good-bye to the crowd, underneath American and Kenyan flags, after delivering a speech at the Safaricom Indoor Arena in the Kasarani area of Nairobi, Kenya, on Sunday. Obama is traveling on a two-nation African tour where he will become the first sitting US president to visit Kenya and Ethiopia. AP/BEN CURTIS

B3-1 | Tuesday, July 28, 2015 • Editor: Lyn Resurreccion

Obama: Kenya at ‘crossroads’ between peril and promise

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AIROBI, Kenya—Declar Kenya—Declar-ing Kenya at a “crossroads” between promise and peril, President Barack Obama on Sunday pressed the nation of his father’s birth to root out corruption, treat women and minorities as equal citizens, and take responsibility for its future.

Closing his historic visit with an address to the Kenyan people, Obama traced the arc of the country’s evolution from colonialism to independence, as well as his own family’s history here. Today, Obama said, young Kenyans are no longer constrained by the limited options of his grandfather, a cook for the country’s former British rulers, or his father, who left to seek an education in America.

“Because of Kenya’s progress— because of your potential—you can build your future right here, right now,” Obama told the crowd of 4,500 packed into a sports arena in the capital of Nairobi. But, he bluntly warned that Kenya must make “tough choices” to bolster its fragile democracy and fastgrowing economy.

Obama’s visit here, his first as president, captivated a country that views him as a local son. Thick crowds lined the roadways to watch the presidential motorcade speed through the city on Sunday, some climbing on rooftops to get a better view. The audience inside the arena chanted his name as he finished his remarks.

The president left Kenya on Sunday afternoon, pausing longer than normal atop the stairs to Air Force

One to wave to the crowd, a huge grin on his face. He arrived two hours later in Addis Ababa, the Ethiopian capital, where he met with diplomats at the US Embassy in the evening.

Obama has written emotionally about his first visit to Kenya as a young man nearly 30 years ago and he recounted many of those same memories in his remarks on Sunday.

The battered Volkswagen his sister drove. Meeting his brothers for the first time. The airport employee who recognized his last name.

“That was the first time that my name meant something,” he said.

The president barely knew his father, who died in 1982 after leaving the US to return to Kenya. However, Obama has numerous family members in the country, including his half-sister Auma Obama, who introduced her brother on Sunday.

“He’s one of us,” she said. “But we’re happy to share him with the world.”

The bulk of Obama’s address was a candid commentary on the East African nation’s future. He spent considerable time warning about the risks of government corruption, calling it an “anchor” that could weigh down the country’s promising future.

“Too often here in Kenya, corruption is tolerated because that’s how it’s always been done,” he said. “Here in Kenya, it’s time to change habits.”

Kenyan President Uhuru Kenyatta has taken steps to tackle corruption by suspending four Cabinet secretaries and 16 other senior officials amid an investigation into allegations of dishonesty. But the action has been met with skepticism by the public because in the past, suspensions of senior of officials haven’t resulted in anyone being convicted of a crime. Some officials even returned to their jobs before investigations were complete.

Kenyatta has been under public pressure to address corruption following reviews of his two-year-old government that claimed his administration is more corrupt than previous administrations.

Obama urged an end to old tribal and ethnic divisions that are “doomed to tear our country apart.”

He spent significant time imploring Kenyans to respect the rights of women and girls, saying that marginalizing half of a country’s population is “stupid.” And he called for an end to forced marriages for girls, who should otherwise be attending school and the tradition known as “genital mutilation.”

“These traditions may date back centuries. They have no place in the 21st century,” he said.

The president drew on the recent debate in the US over the Confederate battle flag, a Civil War-era relic that is seen by many as a racist symbol.

The killing of nine people at a black church in South Carolina last month prompted a fresh debate over the flag, spurring some states to remove it from government grounds.

“Just because something is a part of your past doesn’t make it right,” Obama said.

Some of those in attendance for the president’s speech said they were inspired by his appeal for progress in Kenya.

Upenbo Abraham, a 23-year-old economics student from an area of western Kenya near Obama’s relatives, said he was “encouraged, as a poor boy from a village next to his home.” Ezekiel Oduor, an accountant, said Obama was “candid and clear” about Kenya’s problems with corruption and his desire to help the country rise “to the next level.”

After his speech, Obama met with political opposition leaders, then with a group of African youth and civil leaders on ways to promote civil-society efforts. He told the civil-society group that “the country is going to be better off” if it can cultivate habits of public participation and freedom.

Obama is expected to offer similar messages about good governance and human rights during his two days of meetings with leaders in Ethiopia. Human-rights groups have criticized the president for visiting the Horn of Africa nation, which is accused of cracking down on dissent, sometimes violently.

Obama planned meetings with Ethiopia’s president and prime minister, and a separate session with regional leaders to discuss the situation in South Sudan, a young nation gripped by turmoil since civil war broke out in December 2013.

Countering the al-Qaeda-linked al-Shabab in neighboring Somalia also is on the agenda for Obama’s meetings with Ethiopian leaders.

That threat was brought into sharp relief on Sunday when alShabab claimed responsibility for a suicide truck bombing at a luxury hotel in Mogadishu, Somalia’s capital, that killed eight people and shattered a period of calm in the city. AP

TURKEY CALLS FOR NATO MEETING TO DISCUSS SECURITY THREATS

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NKARA, Turkey—Turkey on Sunday called for a meeting of its North Atlantic Treaty Organization (Nato) allies to discuss threats to its security and its airstrikes targeting Islamic State (IS) militants in Syria and Kurdish rebels in Iraq.

The move came as Turkey’s staterun media reported that Turkish F-16 jets again took off from the country’s southeastern Diyarbakir air base to hit Kurdistan Workers’ Party, or PKK targets across the border in northern Iraq.

There was no immediate confirmation of the report by TRT television, which came hours after authorities said PKK militants detonated a car-bomb near Diyarbakir, killing two soldiers and wounding four others.

Nato announced that its decisionmaking body, the North Atlantic Council, will convene on Tuesday after Ankara invoked the alliance’s Article 4, which allows member-states to request a meeting if they feel their territorial integrity or security is under threat.

The Turkish Foreign Ministry said Turkey would inform allies about the air strikes, which followed an IS suicide bombing near Turkey’s border with Syria that left 32 people dead, and an IS attack on Turkish forces, which killed a soldier.

Turkey requested the meeting, which includes ambassadors of all 28 member-countries, “in view of the seriousness of the situation after the heinous terrorist attacks in recent days,” Nato said.

Nato itself is not involved in operations against the IS group, although many of its members are. As an alliance, however, Nato is committed to helping defend Turkey.

Turkey has simultaneously bombed IS group positions near its border with Syria and Kurdish insurgents in northern Iraq. It has also carried out widespread police operations against suspected Kurdish and IS militants and other outlawed groups inside Turkey. AP

COLOMBIA UNEARTHS LANDFILL LOOKING FOR SCORES CCORES OF DISAPPEARED M EDELLIN, Colombia—The last contact Margarita Restrepo had with her daughter was a hurried phone call on October 25, 2002. The school day was over and 17-year-old Carol Vanesa was going to meet friends at a metro stop near the sprawling Comuna 13 hillside slum.

Restrepo and her children had fled the violent Medellin neighborhood a few days earlier, right before it was taken over by thousands of Colombian soldiers trying to ferret out leftist rebels. She begged the girl not to risk returning there, but the teen went anyway. Neither she nor her two friends have been seen again and, to this day, nobody knows who is responsible for their disappearance.

Thirteen years later, Restrepo and dozens of others who have missing loved ones are closer than ever to closure. On Monday a team of forensic experts will begin removing 31,000 cubic yards (24,000 cubic meters) of rubble from La Escombrera, a debris landfill on Medellin’s outskirts, where the remains of as many as 300 people are believed to have been dumped during one of the darkest chapters of Colombia’s long-running civil conflict.

Human-rights activists said it could be the biggest mass grave ever in Colombia and the dig represents a glimmer of hope that justice will be realized. But the search will be complicated. Despite more than a decade-long clamor by victims’ families that the landfill be closed and excavated, giant trucks have continued to dump construction waste daily.

“If that light doesn’t shine for me, I hope it does for one of my companions,” Restrepo said while holding up a placard with her daughter’s photo and disappearance date, the eyecatching symbol used by the group Mothers Walking for the Truth to draw attention to their fight.

Colombia’s rightist paramilitary groups demobilized a decade ago, and the government is now negotiating a peace deal with the biggest rebel movement. With the five-decade conflict winding down, officials have been fanning out across the country to exhume hundreds of bodies, attempt to identify them through DNA testing and return the remains to family members.

But, most of the unmarked graves are in lawless rural areas, not Medellin, which is Colombia’s second-largest city.

Restrepo’s disappearance took

place at a time and place where being young like her was almost tantamount to a death sentence.

Shortly after taking office in 2002, then-President Alvaro Uribe launched Operation Orion to repel leftist rebels from a densely populated hillside slum in the poor and violent Comuna 13 district. The of offensive lionized Uribe’s reputation among Colombians as a crime-fighting conservative, whose tough talk was backed by action.

But almost as soon as the military retrenched, the void was filled by far-right militia fighters in ski masks and wielding heavy weapons. Allegations of killings of civilians and disappearances multiplied. Many of the paramilitary crimes were carried out in an alliance with US-trained security forces.

Former militia fighters, including Diego Fernando Murillo, the jailed warlord known by the alias Don Berna, who once terrorized much of Medellin, have testified they dumped their victims in La Escombrera.

Investigators said it is unclear how many, if any, bodies can be recovered. Too much time has passed and the 8-meter-high (9-yardhigh) mountain of debris likely has crushed many of the remains.

But they say their biggest obstacle is providing for the safety of the forensic experts carrying out the painstaking work. While violence in Medellin’s slums has fallen sharply over the past decade, with the city last year reporting its lowest homicide rate since the height of drug boss Pablo Escobar’s power in the mid-1980s, the five-month excavation is taking place in an area where criminal gangs still lurk, many of whose members are implicated in the very crimes being investigated.

Mistrust of the police, who are providing around-the-clock protection, still runs high.

Still, the experts will try to help close a wound not just for the victims of Comuna 13, but to make a symbolic gesture for millions of Colombians touched by violence and abandoned by the state.

They have cordoned off and will focus their search in three sections of the landfill where bodies are believed to have been dumped. A makeshift camp is being built for loved ones who want to stay abreast of the investigators’ progress. There is also a mausoleum planned and an exhibit in a Medellin’s Museum of Memory, a new space for reflection and study of Colombia’s violent past. AP

WORLD

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TOUR DE FROOME! Sports BusinessMirror

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| TUESDAY, JULY 28, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

FLATS MAKE DIFFERENCE

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HE 102nd edition of the Tour de France culminated with a “paradoxical” result, race chief Christian Prudhomme says: Two expert climbers battled for victory, but the flats made the difference.

Up until the next-to-last stage in the Alps, Chris Froome held on against a surging Nairo Quintana of Colombia to win his second Tour in three years by one minute and 12 seconds—the closest Tour victory margin since 2008.

The two were virtually equal in the mountains this year. But Froome got an early lead in Stage 2 in the Netherlands, outpacing the Colombian by 1:28 in that wind-swept leg.

After the race finish on Sunday, Prudhomme said: “It

all played out in Zeeland, in the flat country.”

In recent years, skill in time-trials and mountains has been crucial to Tour victory. Time-trialing got lower billing this year. nnn

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ETER SAGAN has made it four in a row.

The Slovak speedster has again taken home the green jersey awarded to the Tour’s best sprinter.

The honor gives a bit of glory to his Tinkoff Saxo Bank team, whose leader Alberto Contador wasn’t a contender as had been expected before the race, and a personal consolation to him: Sagan finished second in five stages

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ANY French love to boast that the ChampsElysees is the world’s most beautiful avenue. But for Tour de France debutant Warren Barguil, it’s

one of the worst for cycling.

The 23-year-old Frenchman said aloud what many Paris cyclists know all too well: That the highly trafficked paving stones have seen their fair share of wear, and it’s not exactly the best place for a smooth ride.

“The Champs-Elysees is not a very, very good road, let’s say,” Barguil told France-2 TV. “It may be the worst in the Tour de France!”

Many bikes rattled on the various potholes in Sunday’s 21st and final stage, won by Germany’s Andre Greipel as Chris Froome of Britain won the three-week race.

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NDRE GREIPEL has shown again he’s simply the best sprinter at the Tour de France this year.

The hulking German made it four stage victories this year with a sprint victory on the ChampsElysees in the 21st and final stage on Sunday, edging past France’s Bryan Coquard in second.

The powerful 33-year-old Lotto-Soudal rider also collected the tenth Tour stage win of his career, and gave Germany a total of six stage wins, including ones

by Simon Geschke and Tony Martin—the most of any country at the race.

Greipel’s tally equals the number of stage wins that Vincenzo Nibali had on way to winning the Tour last year. AP

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B J L The Associated Press

ARIS—All for one, one for all, and all bathed in yellow.

Arms over each other’s shoulders, linked together in a long line of happiness,Tour de France winner Chris Froome and his teammates pedaled slowly over the finish line, soaking up the applause on Sunday on the Champs-Elysees.

Three weeks of furious racing, of beating back both a tenacious Colombian, Nairo Quintana, and doping suspicions that are Lance Armstrong’s poisonous legacy to cycling, were over.

Time for the winner’s speech.

“The Maillot Jaune is special, very special,” Froome said, using the yellow jersey’s French name.

“I understand its history, good and bad,” he said. “I will always respect it.”

The Tour is still French. But British riders have won three of the last four: Bradley Wiggins in 2012 and now two for Froome, following his first win in 2013. That puts Britain equal with the US, with three from Greg LeMond—and minus seven stripped from Armstrong.

Under suitably British weather, on rain-slickened roads, Froome took it easy on the last Stage 21, his

work done having grimly resisted Quintana’s late assault on his hard-won Tour lead the previous day on the final Alpine ascent.

The tired 160 riders—of 198 who started—didn’t bother racing for much of the largely flat 110-kilometer ramble from Sevres, in the French capital’s southwest.

To minimize risk of crashes, Tour organizers stopped the clock early, on the first of 10 laps up and down the Champs-Élyseés’s cobblestones.

That locked in Froome’s lead to guarantee victory.

He smiled broadly as he pedaled past flag-waving spectators. He still had to ride the laps to complete the full race distance of 3,354 kilometers.

But knowing the title was his, he didn’t have to panic when a paper bag got stuck in his back wheel. He simply stopped and changed bikes. He also had time to raise a glass of Champagne in the saddle and stop to put on a raincoat under the iconic yellow jersey.

While sprinters dashed ahead for the stage win— snatched by Andre Greipel, his fourth and Germany’s sixth at this Tour—Froome and his teammates, wearing yellow stripes on their shorts and helmets, linked together for their slow-motion, chorus-line finish.

“This is your yellow jersey as much as it is mine,” Froome said.

Their powerful riding, chasing rivals in the mountains

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and protecting Froome on flats, was vital. So, too, was the meticulous planning of Dave Brailsford, the organizational brains at Froome’s Team Sky, which has far surpassed its goal in 2009 of nurturing Britain’s first Tour winner within five years.

In a repeat of 2013, Quintana was again runner-up.

But the margin was much smaller this time: one minute and 12 seconds, the tightest win since 2008.

Third-placed Alejandro Valverde, Quintana’s Movistar teammate from Spain, made the podium for the first time, moving up from fourth last year.

For all the pre-Tour talk of a possible four-way battle between Froome, Quintana, 2014 champion Vincenzo Nibali and two-time winner Alberto Contador, only the 25-year-old Colombian—who again won the Tour’s white jersey as best young rider—gave the yellow jersey a run for his €450,000 ($494,000) in prize money.

“He’s a great rival,” Quintana said. “He suffered a lot to win.”

With more experience and more smarts in the first week when he lost too much time, Quintana would have posed a bigger threat and perhaps come closer to becoming the first Colombian winner.

This Tour was mountain-heavy, suiting Quintana’s climbing strengths. Future Tours could have more time trials, which Froome excels at. Their developing rivalry,

with youth on Quintana’s side against the 30-year-old Froome, could help the sport win back fans disgusted by the systematic deceit of Armstrong’s era.

“I have lots of years ahead of me,” Quintana said.

Totaled up, Quintana took more time off Froome on the Tour’s high mountain climbs than the other way around.

Yet, the Colombian didn’t have to contend with the scrutiny, doubt and thinly veiled suggestions of doping that Froome was forced to respond to on an almost daily basis, mostly with patience but also with bristle as the race wore on.

Such was his strength, it’s no longer a stretch to imagine Froome soon joining the elite group of seven riders who won three Tours or more. The record of five wins—achieved by Jacques Anquetil, Eddy Merckx, Bernard Hinault and Miguel Indurain—is still far off.

Froome says he would like to keep competing “as long as my body will allow me.” His aim is at least another six years.

“I love the sacrifices, the training, the hard work.

That’s what gets me out of bed in the mornings. I’m not trying to do it for a specific amount of Tour titles or fame,” he said after sealing his win in the Alps. “I love riding my bike. I love pushing my body to the limit. I love the freedom that cycling gives you.”

Party gone bad

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CHRIS FROOME (above photo) to his Sky teammates, who delivers him to the top of the podium in Sunday’s final stage: This is your yellow jersey as much as it is mine. AP

ARIS—Paris police were searching for four occupants of a car that struck a taxi and tried to crash barricades set up near the Tour de France finish line on Sunday morning, drawing police fire hours before the arrival of cyclists and spectators. Police said they didn’t suspect terrorism.

Police found the car with bullet impacts not far from the Place de la Concorde where police opened fire, according to a police official and a ranking official close to the investigation. They asked not to be identified by name because the investigation was ongoing.

The car carried two men and two women, one of whom was injured on her upper body, the ranking official said, citing a witness at a hotel where the group sought a glass of water for her. It was not immediately clear if the woman had been hit by a bullet.

Tour de France wasn’t be affected by the incident.

Paris has been on edge since double attacks in January

by Islamic extremists on the French satirical newspaper Charlie Hebdo and a Kosher grocery left 20 people dead, including the three attackers. Thousands of police and soldiers were deployed on the streets after the attack to protect sensitive sites and tourist attractions.

Police had opened fire at the Place de la Concorde, where the cyclists make their final triumphant rounds to conclude the race.

The police official said the investigation is “moving completely away from any terrorist lead or voluntary action against police.”

Police believe the car’s occupants had left one of the nightclubs in the ritzy neighborhood, were intoxicated, or had taken illegal substances, and didn’t want to submit to a police check, officials have said.

“The scenario is becoming clearer. The party ended badly,” the ranking official said. AP

SPORTS

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Delivering his sixth and last State of the Nation Address (Sona) at the joint session of the Senate and the House, the President took the opportunity to press Congress to pass the BBL that would replace the Autonomous Region in Muslim Mindanao with a new entity, as part of the government’s peace agreement with the Moro Islamic Liberation Front.

Mr. Aquino dared administration critics to provide a good alternative

COMMUTERS HOPED TO BENEFIT IN TAXI, UBER, GRABCAR TIFF B L S. M

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Second of three parts

R A NSPORT net work companies, or TNCs, are at the forefront of the digital revolution that has been happening in the Philippines for a few years now.

Filipinos are, more than ever, more open to technological advances—especially in the mobile arena. More often than not, one will see a pedestrian looking at his mobile phone while walk-

ing along the streets of Manila, checking out his social-media accounts or his e-mail.

Internet penetration, although, is not yet 100 percent. Smartphone penetration, meanwhile, is now roughly more than 50 percent. This means half of the population is now using smartphones, which have better functions than a feature phone.

Now, people could use their mobile phones to pay for their C  A

C  A

Anemic trading greets President’s last Sona B VG C

this year, but never won one.

The green jersey is awarded based on a points-system based around sprint sections during the stage, plus each stage finish. Andre Greipel of Germany, who won four stages in sprints, including Sunday’s 21st and final leg, was Sagan’s runner-up.

Quipped Sagan, who had the green jersey pretty much locked up before Sunday: “I’m happy I didn’t fall.”

Tour de FROOME! Team Sky’s powerful riding, chasing rivals in the mountains and protecting Chris Froome on flats, was vital. So, too, was the meticulous planning of Dave Brailsford, the organizational brains at Froome’s Team Sky, which has far surpassed its goal in 2009 of nurturing Britain’s first Tour winner within five years.

B B F

SPECIAL REPORT

N the day President Aquino delivered his last State of the Nation Address, redcolored numbers dominated the big board of the Philippine Stock Exchange (PSE). Trading ended with losers edging out gainers 123 to 44, with 41 shares unchanged.

T he benchmark Phi lippine Stock Exchange index (PSEi) shed 1.5 percent, or 110.08 points, to close at 7,547.44 points, as other

PESO EXCHANGE RATES n US 45.4660

indices also fell. Total volume was 4.48 billion shares worth an anemic P5.51 billion.

Other subindices were also down, led by the All Shares index that lost 55.02 to 4,320.13; the Financials index dropped 30.37 to 1,659.17; the Industrial index declined 98.88 to 11,445.66; and the Property index shed 92.22 to 3,074.30.

“Something spooked the market again, as a new trading week opened.

At this point, there just isn’t enough S “A ,” A

A TRADER at the Philippine Stock Exchange looks at the big board in Makati City which reflected mostly red lights, as trading was down just before the start of the last State of the Nation Address of President Aquino. NONIE REYES

n JAPAN 0.3673 n UK 70.5041 n HK 5.8658 n CHINA 7.322 n SINGAPORE 33.1530 n AUSTRALIA 33.1168 n EU 49.9399 n SAUDI ARABIA 12.1243 Source: BSP (27 July 2015)

BMReports BusinessMirror

A2 Tuesday, July 28, 2015

news@businessmirror.com.ph

Commuters hoped to benefit in taxi, Uber, GrabCar tiff Continued from A1

bills, connect with loved ones in abroad, book for airline tickets, play games—and even order a cab or a private car. This phenomenon drove companies, such as Uber, GrabCar, Tripda, Easy Taxi and others to partner with telecommunications providers, such as Smart Communications Inc. and Globe Telecom Inc., to further boost their popularity.

From problem to opportunity

Uber, according to its Southeast Asia and Australia’s Regional Manager Michael Brown, was founded after its owners found it difficult to get a ride after attending a conference in Paris, France.

“Would it be magic if they can click a button, and automatically, a vehicle would come pick them up—ideally, a very shiny and fancy vehicle so they can impress their friends —and take them out for a nice dinner,” Brown recounted of the story of Uber’s founders.

So they built the application for their phones, and decided to share it with their friends, and viola, Uber was born.

“What happened after that was a revolution in transport. People want affordability, reliability and safety.

They don’t want to haggle or worry about whether they will be taken down to some dark alley. And they want to know that whatever time of the day it is—whether it’s raining or snowing or sunny or there’s floods like sometimes happens here in Southeast Asia—they can count on their transport to be there for them,” Brown said.

“In developing this little app, Uber was able to address these issues and created a revolution,” he added.

More choices

Indeed, Filipinos welcomed TNCs with open arms.

Angel Mariano, an engineering student in a private school in Manila who lives in Rodriguez, Rizal,

is a user of both Uber and GrabCar. When she has the means, she uses their services to get to school or to go home.

To use both apps, one must enter his current location and his destination. A driver will then respond to the request. In Uber, payment is cashless, meaning one must have a credit or a debit card. But in GrabCar, payment is mostly cash.

Mariano said he has never felt safer than before while traveling.

“Drivers from both companies,” she said, “are very courteous.”

She even carried a neck pillow one morning commute going to her university and slept until she arrived.

The emergence of Uber and GrabCar gave the likes of Mariano a wider choice of transport means.

“These applications give people a new option to navigate our cities in a manner which makes people feel safe, and is convenient for their purposes,” Transportation Secretary Joseph Emilio A. Abaya said.

“Certainly, technology is necessary to improve the transport industry. Technology is evolving at such a rapid pace in any industry, and it has made quality of life better for all. There is neither a legitimate reason nor a practical way to stunt its growth. Thus, either we remain stagnant, refuse to adapt and be left behind stuck in the past; or we embrace technology and evolve along with it for the public good,” he added.

But not an answer

The technology, although helpful, is not the solution to the growing congestion in Metro Manila’s major arteries.

Traffic in Metro Manila is horrendous, especially during rush hours.

Manila is the second most-congested city after Jakarta in Southeast Asia.

“Everyone is affected by the traffic congestion in Metro Manila.

These apps are not an answer to the traffic situation, but answer to the need for land transportation,” Land Transportation Franchising and Regulatory Board (LTFRB) Chair-

man Winston M. Ginez said.

The answer, he said, lies on traffic management and the construction of more infrastructure that will address the demand for connectivity.

Cannibalizing?

Companies, such as Uber and GrabCar, although being patronized

by Filipinos, received their fair share of criticisms.

From the moment they stepped into the Philippine soil until today, critics have been voicing out their concerns with regard to their operations.

One of them, of course, is the group of taxi operators.

Philippine National Taxi Operators A ssociation (PNTOA) President Jesus Manuel C. Suntay said app-based transport network services are effectively eating into their market, thus, placing the common taxi driver at the losing end.

“Our concern is that they are carving into the market that we serve,” he said.

A regular taxi driver, on the average, may take home about P1,200 per day, depending on the traffic and the number of passengers served.

“I usually work for the whole day, meaning 24 hours per day. Out of the P4,200 average daily earnings that I get, I only get to take home P1,200. Everything else was paid to the operator and the gas,” Antonio de Guzman, a taxi driver, said.

Since these people work for 24 hours a day, they only go to work for about four days on the average.

Some try their luck by going on with five days of work without sleep.

“What I earn is just enough for the food, rent and the schooling of my kids,” said de Guzman, who considers himself a veteran at the business.

But when the TNCs came into the picture, de Guzman’s income is destined to fall, Suntay said.

“Because of the traffic in Metro Manila, our income gets lower; add to that the competition with these companies. At times, it is very hard to get a passenger, and these two problems contribute to that,” the

president of the taxi group said.

‘Very unfair’

Suntay noted that he has nothing against these operators. After all, a healthy market is a competitive one.

“We can coexist, but we have to have a level playing field,” he said.

The president of the taxi group explained that the regulations for the two transport classifications—taxis and TNCs—are different despite the glaring similarities between the two segments.

“For taxis, we are only allowed to operate a certain number of units, but for companies like Uber and GrabCar, regulation is limited,” he said. “We are also required by the government to print on the body of our units the company name, our address, our telephone number and even the office of the LTFRB. Uber and GrabCar have no such requirements.”

He maintained that the issue is not that small, saying that this mechanism will allow customers to complain before the authorities, should something wrong happen during the ride.

“Taxi meters should be calibrated twice a year. We are also required to properly maintain our units. Uber and GrabCar are not required to do so. Now, tell me who will approve the roadworthiness of their vehicles and who will regulate their fares?”

Suntay said.

Uber and GrabCar base their fare rates on certain computations.

Fares go up and down depending on the time of day, and the situation of the traffic.

Uber has an upsurge feature that allows it to collect higher rates during rush hours.

“Taxi drivers are begging the government to increase their fares.

Instead, the government slashed P10 off their base. We are barred from asking our passengers for higher rates during rush hour, but Uber and GrabCar have the power to increase their fares whenever they want to,” Suntay lamented.

“We find it very unfair,” he said.

“They have unregulated fare and there is no crime on their part.”

Hence, all his group wants is a level playing field—an equal competition. “We should be regulated, but they should also be regulated according to how we are being regulated. It is just okay for us if they want to operate, what we are asking is fair competition, a level playing field,” Suntay said.

Open market

But for GrabCar Philippines Acting General Manager Natasha Bautista, the existence of TNCs in the transport market will be beneficial to the public.

“We don’t see it as unfair competition. In fact, we are the only transport app that carries both taxi and car,” she said, referring to GrabTaxi.

“It is the choice of the passenger as to what he will choose: a taxi or a private car. There are passengers that really prefer taxis, there are those who prefer private cars. So we are giving them the freedom to choose,” she said.

Uber Manila General Manager Lawrence Cua added that Filipinos patronize TNCs because they are the safer and more reliable option to bringing one’s own vehicle.

“I think, one of the reasons people really like Uber in Manila is because of the traffic. People who drive, they don’t like sitting behind the wheel during congestion. It’s unproductive. We are the safer and more reliable option to getting your own car on the road. Now, people have a choice,” he said.

More opposition

App-based service operators are also facing opposition at the House of Representatives.

TNCs have been operating in the country for more than a year now.

They started to mount services despite the lack of regulation, making Congress question the legality of their business.

This prompted the transportation

department to issue an order spelling out the classification for TNCs, as there was a demand to be met.

When the transportation department and the LTFRB released the guidelines for the operations of TNCs and Transportation Network Vehicle Service (TNVS) in May, they were not immediately legalized.

They were required to secure a license and a franchise before they could start operations. But two months later, only one is legally allowed to operate: GrabCar. “Ever since the beginning, we were very compliant with the government. We were never resistant to any of their concerns or issues.

We’ve always been working with them, even with the drafting of the memorandum and the department orders concerning TNCs,” GrabCar’s Bautista said.

Uber’s Cua, for his part, said his company is still finalizing the paper works for the accreditation.

“Right now, we have not yet filed.

But we will, very soon. We are working on it right now,” he said.

This prompted Nacionalista Party-list Rep. Raneo E. Abu of Batangas City to urge the national police and the transportation department to go after Uber’s illegal operations.

Safety concerns

This also raises the question of safety. Ginez said his office has yet to receive a formal complaint against any TNC as of press time.

But in the social-networking site Facebook, a recent incident with an Uber driver emerged.

A certain Elisa Borja took to Facebook the allegedly traumatic incident that her daughter experienced with Uber Driver Kelvin Lagas.

Her daughter hailed an Uber ride from her school in Mapúa Institute of Technology in Makati City going to Boni Serrano in Quezon City.

En route, the “driver kept on opening the window saying he is not feeling well. Then upon reaching Tivoli Gardens in Mandaluyong, he told my daughter that he will buy water so he can take his medicine.”

Lagas then stopped at a house with a small store to buy water.

Two men then went inside the car, with one sitting on the driver’s seat and another beside Borja’s daughter. She went out of the vehicle thereafter.

In another Facebook post, Lagas, who identified himself as the Uber driver of Borja’s daughter, apologized, explaining that he, indeed, had a health emergency that time.

He clarified, in length, how he had to be brought to the hospital during the incident with Borja’s daughter.

He even posted pictures of himself at the hospital, his medicines and a doctor’s certificate.

“A major advantage of TNVS is their use of technology in monitoring their drivers and vehicles. If any person is unhappy with their services, you can easily complain to authorities, because you will be able to identify the vehicle and the driver, whose information are available to users. In fact, the feedback we get from the public is that they feel much safer riding TNVS compared to other forms of public transport,” Abaya said.

Cua and Bautista both agreed that safety is the primary concern of their companies.

“We focus on providing a safer and better transportation option to riders,” Cua said.

Bautista, for her part, said the accreditation processes of partner drivers and their vehicles for GrabCar are very stringent.

“And once you are inside, once you became a GrabCar driver, it doesn’t mean that you will be our partner forever. You can still be sacked,” she said.

GrabCar and Uber have their own 24/7 customer-service centers to make sure complaints will be heard.

“We really check each one, and if the driver is proven to have done something wrong, he can be taken out of the community,” Bautista said. To be continued

The Nation BusinessMirror

news@businessmirror.com.ph

Editor: Dionisio L. Pelayo • Tuesday, July 28, 2015 A3

Aquino’s ’13 campaign pledge ‘joke only’–Coloma

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By Butch Fernandez

ALACAÑANG clarified on Monday that President Aquino was “just joking” in making a pledge that he and Transportation Secretary Joseph Emilio A. Abaya would volunteer to get ran over by a train if they fail to fulfill Aquino’s promise to improve and expand the Light Rail Transit (LRT) service to southern Metro Manila.

The promise was made during the 2013 election campaign.

“Siguro lang unawain natin na sinabi iyon with all the good intention na maihatid kaagad ang benepisyo sa mga mamamayan

kaya medyo pabiro ang statement na iyon,” Communications Secretary Herminio B. Coloma Jr. told reporters on Monday, even as he quickly added: “Pero sa lahat naman ng pagkakataon siniseryoso

ang pagbibigay ng commitment na sinisikap ang pag-improve sa mga serbisyo publiko natin.”

The promise to extend the existing LRT Line 1 from Baclaran to Cavite by 2015 was made by Aquino during the 2013 mid-term campaign sortie in Cavite. Aquino was then campaigning for Liberal Party candidates in Cavite led by Gov. Ereneo Maliksi. Maliksi lost and has been appointed chairman of the Philippine Charity Sweeptakes Office.

“At pag hindi ho nangyari ito, nandyan ho si Secretary Abaya na nangangasiwa ng proyektong ito, dalawa na kaming magpapasagasa siguro sa tren,” Aquino told Caviteños two years ago, referring to the LRT extension project estimated to cost P60 billion. Abaya is also a Caviteño.

To drive home the point that he wanted to see the project completed in two years, Aquino added: “At siyempre, nananabik na po

tayo sa taong 2015, hindi ho dahil isang taon na lang ako manunungkulan, kung hindi mapapabilis na ang biyahe mula Baclaran hanggang Bacoor, at madadagdagan din ng 250,000 pasahero ang maisasakay kada araw dahil sa LRT Line 1 Cavite Extension.”

Reminded of the unfulfilled pledge on Monday, Coloma admitted that Aquino was not really serious about getting ran over by a train with Abaya if the promised LRT Line 1 extension to Cavite is not fulfilled by 2015.

“In context, I think, what he [Aquino] really meant was seryoso ang gobyerno doon sa pagpapatupad ng programa. At kung titingnan ang larger picture, marami namang nailunsad na mga masstransit projects, hindi lang iyong specific na LRT Line 1 extension.

Pero nakagawa na rin naman ng progreso simula noon, kaya lang kung hindi nakumpleto maaaring may mga bottlenecks,” Coloma

said, blaming possible flaws in the bidding process.

He explained that the Aquino administration is not inclined to “shortcut” the process. “Hindi naman puwedeng i-shortcut iyon, kinakaiilangan sundin talaga ang procurement law at ang bidding regulations. Minsan naman ang nakakaantala ay ang right-ofway problems.”

Coloma pleaded for public understanding, insisting that the President’s pledge was made by Aquino during the 2013 Cavite campaign sortie “with good intention.”

He added that Abaya reported that the project was delayed owing to snags in bidding out the project.

Abaya also said the DOTC encountered problems in balancing the interests of the LRT commuters and the government guarantees on return of investments of private partners who will put up the project.

Romulo asks school principals, teachers: Help spread word on education laws

By Claudeth Mocon-Ciriaco Correspondent

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IBERAL Party Rep. Roman T. Romulo of Pasig is asking the public school principals and teachers to conduct an information campaign among students about the three new measures on education that were signed into law late last year.

The three laws are the Iskolar ng Bayan Act (Republic Act 10648), the Ladderized Education Act (RA 10647) and the Open Distance Learning Act (RA 10650), that he authored in the House of Representatives. His bills were later consolidated with the Senate versions and the two chambers finally passed all three measures on September 24, 2014.

“While the law mandates the Department of Education (DepEd), the Commission on Higher Education (CHED), all state universities and colleges [SUCs] and other government agencies to provide the needed assistance for the implementation of these laws, the principals and teachers actually constitute the more critical element in information dissemination as they are in direct contact with the beneficiaries,” Romulo said. “It is, therefore, imperative that they take the initiative in spreading the word about the benefits and assistance that these laws provide.”

Romulo said he is particularly concerned about the implementation of the Iskolar ng Bayan Act and the Ladderized Education Act which, he said, deal with a highschool graduate’s earliest and most immediate steps to either earn a college degree or acquire technicalvocational education and training that would lead to a job.

The Iskolar ng Bayan Act provides scholarship grants to all students within the top 10 in every graduating class in all public highs schools, and not just to the valedictorians or salutatorians of the class.

The scholarships can be availed of in any SCU within the region where the student graduated.

With around 8,000 public high schools in the country, the estimate is that this law will benefit about 80,000 students. The law provides that these graduates shall enjoy free tuition and other fees and they shall be admitted automatically without the need to take entrance examinations.

If a public high school has more than 500 students in its graduating class, it shall be entitled to one additional scholarship. The only limitation is that the number of scholarships should not exceed 5 percent of the incoming college freshmen in any state-funded college or university.

On the other hand, the Ladderized Education Act allows a student to enrol and finish a course on technical or vocational education, like welding, elec- romulo tronics or automotive servicing that can help him land a job soonest. The law also mandates the CHED, Tesda and the DepEd to include in their budgets the provision of scholarships, grants and loans to deserving students and workers availing of ladderized education, in addition to their existing scholarship programs.

A person who is motivated to further rise up the economic and social ladder can then work for an engineering or related degree. The courses he had previously taken that are related to his chosen field of higher study will be credited to him and there is no need for him repeat these subjects.

The law mandates the DepEd, the CHED and the Tesda to consult with several other government agencies and established industries to identify priority disciplines and programs in implementing the measure. The government agencies include the National Economic and Development Authority, the Department of Trade and Industry, Department of Labor and Employment, Department of Agriculture, Department of Science and Technology and the Professional Regulation Commission.

The law on Open Distance Learning provides opportunity for anybody to earn a bachelors degree or even obtain master’s and doctoral titles even at home. Or even while working, here or abroad.

They can simply take any course they want online, using computers. Hence, even overseas Filipino workers can take advantage of this law, thanks to the revolutionary advances of information and communications technology.

As chairman of the House Committee on Higher and Technical Education, Romulo said his committee wants to provide greater accessibility to higher education among those who are usually hobbled by financial difficulties.

“Education is the surest path to enhance and a person’s economic and social development. That is why we must explore all possible avenues to promote higher education or technical and vocation training so that poverty will no longer be a bar that will prevent any Filipino from attaining a better life,” Romulo said.

AD MAJOREM, DEI GLORIAM

Jesuits priests wait for the Holy Mass in commemoration of St. Ignatius of Loyola at the Ateneo de Manila University in Quezon City. St. Ignatius was knight who was wounded at the siege of Pamplona, Spain. He later founded the Society of Jesus after it was revealed to him that the Church militant needed an army of glorious soldiers to fight the forces combined against it. NONIE REYES

Grad asks CA to force school to issue her certificate of good moral character

By Joel R. San Juan

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RISEL MALLARI, who caught public attention when she criticized her school during her graduation speech, has sought relief from the Court of Appeals (CA) for the immediate release of her certificate of good moral character, a requirement for her college admission.

In her petition for mandamus filed through lawyer Persida Acosta, chief of the Public Attorney’s Office (PAO), Mallari and her father Ernesto asked the appealate court to direct the Santo Niño Parochial School (SNPS) in Quezon City to release her certificate of good moral character.

Petitioner said she needs the certificate in order to qualify for admission in the University of Santo Tomas’s (UST) accountancy program

where she already has a reserved slot.

“Without a certificate of good moral character from my high school, I cannot enroll. Hence, private respondents’ continued unjustified refusal to issue the said certificate would result in the denial of my application for admission in UST and forfeiture of my reserved slot in its accountancy program. It will put my education to a halt and my future in jeopardy,” the petition read.

Named respondents in the petition are Judge Alfonso Ruiz of Branch 216 of the Regional Trial Court in Quezon City, SNPS and school registrar Yolanda Casero.

The 16-year-old graduate also asked the CA to reverse an earlier ruling of the RTC in Quezon City dismissing her complaint for injunction w ith d amages

against the high school.

She accused Ruiz of grave abuse of discretion when he allegedly prejudged the case.

Owing to her school’s refusal to issue the certificate, the Department of Education (DepEd) issued a certification dated June 9, 2015, stating that she has no derogatory record or any complaint filed against her.

But UST declined to honor the DepEd-issued certificate and instead extended the deadline for Mallari to complete all requirements until July 15.

Mallari became controversial in March after a video recording of her graduation speech criticizing the school “for its dirty and dubious” system went viral in the social media.

School officials cut short her speech and forced her to leave the stage.

Miaa prepares for weather disturbances

By Recto Mercene

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HE Manila International Airport Authority (Miaa) officials on Monday met with representatives of airlines, ground-handlers and airport meteorologists to clarify the procedures to be followed in case of weather disturbances like thunderstorms and heavy rains.

This, after several flights were delayed on Saturday because of heavy rains and thunderstorm that struck the general vicinity of the premier airport.

Airport Officer in Charge Vicente Guerzon Jr. said a protocol should be in place in the event of weather phenomena that disrupt flight operations at the Ninoy Aquino International Airport (Naia).

The Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa), which maintains a permanent station at the airport complex, regularly issues weather alerts to the Miaa and recommends the precautions for airlines to follow.

The Miaa evaluates the Pagasa reports before issuing advisories—such as thunderstorm and lightning alerts—to terminal management and the control tower, which are then forwarded to their respective airlines and ground-handlers.

Pagasa alert levels that are given to Naia are as follows: Alert Level 1, the weather phenomena is from 30 to 60 kilometers away and all ground activities can continue.

Alert Level 2, the weather phenomena is 15 to 30 km away and all ground activities can continue.

Alert Level 3, the weather phenomena is 5 to 15 km away and ground activities can continue except for: 1) fueling of aircraft and other service equipment, and 2) the deployment of catering services to the ramp area.

Alert Level 4, the weather phenomena is 5 km away and all ground services stopped. All personnel at the ramp should seek shelter at designated safe areas and embarkation and disembarkation of passengers should also be put on hold.

If an aircraft is at a remote parking area, passengers will remain inside the cabin until the alert is lifted.

Another advisory will be issued by the Miaa in coordination with the Pagasa when weather alerts are to be lifted.

Guerzon requested for patience from passengers should their flight be affected by weather disturbances.

“Safety is the priority of the airport management especially in times of weather disturbances. We would rather have delayed flights than casualties,” he said.

He added that aside from the safety protocols, 19 sets of lightning-protection systems are installed around the airport complex to mitigate the effects of electrical storms.

Marquez confers PGS-compliance status to 11 units

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IRECTOR General Ricardo Marquez, National Police chief, has conferred the Performance Governance System (PGS)-compliant status to police units that successfully completed the second stage of PGS Patrol Plan 2030.

Marquez was assisted in giving the pin of compliance by members of the National Advisory Group for

Police Transformation and Development; lawyer Anicia de Lima, former commissioner of the Civil Service Commission; Jose Navarro; Director Benjamin Magalong, chairman of the Technical Working Group on Patrol Plan 2030; and Chief Supt. Noel Baraceros, director of the Center for Police Strategy Management.

The 11 units are the Director-

ates for Personnel and Records Management (DPRM) and for Research and Development (DRD); Anti-Kidnapping Group (AKG); Communications and Electronics Service; Health Service (HS); Legal Service (LS); Maritime Group (MG); Police Regional Office 1 (PRO 1); Police Regional Office 4B; Police Regional Office 7 and Police Regional Office 10 (PRO 10).

The DPRM, DRD, AKG, HS, MG, PRO 1 and PRO 10 also received the Certificate of Silver Eagle Award for garnering an overall rating of more than 90 percent.

The 11 units successfully passed the Compliance Evaluation Process composed of three phases—Strategic Readiness Test or SRT, the Performance Audit and the Unit Revalidation. Rene Acosta

Economy

A4 Tuesday, July 28, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

Senate did its job to rev up economy, attract investors, create jobs–Drilon

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By Recto Mercene

umming up the economic measures passed under the 16th Congress to make the country more competitive, Senate President Franklin Drilon said on Monday that the Senate had passed several measures to stimulate the economy and attract foreign investments, thus, creating more jobs.

In his speech during the opening of the third and last regular session of the 16th Congress, Drilon said that last week, President Aquino signed the Philippine Competition Act, which took more than 20 years for Congress to enact an antitrust law.

“We now finally have a competition policy that outlaws and penalizes anticompetitive agreements, abuse of dominant position, and anticompetitive mergers and acquisitions.”

The Senate also enacted the Revised Insurance Code, which imposed more stringent capitalization requirements to strengthen the insurance industry and make it more resilient to shocks.

He said that in 2013 the President asked Congress to “amend the cabotage law in order to foster greater competition and to lower the cost of transportation for our agricultural sector and other industries.”

The Senate responded by amending the cabotage law to achieve these goals, according to Drilon, who added that the Senate also legislated the

full entry of foreign banks by allowing them to acquire and invest up to 100 percent of the voting stock of a domestic bank.

“We also enacted a law that allowed foreign investors to own 60 percent of the voting stock in rural banks,” he added “To boost our tourism industry, we exempted foreign carriers from paying, on a reciprocity basis, the common carrier’s and value-added tax for the transport of passengers,” Drilon said.

With barely a year left before the 2016 elections, Drilon enjoined his colleagues “to set aside political interests and instead focus their time and resources on thinking of solutions to the nation’s pressing problems.”

In the months leading up to the next elections, however, Drilon said that the challenge for him and his colleagues in the Senate is to enact laws that will ensure the continuity of these reforms.

“The challenge that is thrown to us and to the people who will be elected in 2016, is to ensure the continuity of these reforms,” Drilon said.

“We are racing against time. Let us remind ourselves that we are here to serve the people, and not special interest groups,” he said.

“We must ensure a bright and promising future for the younger generation and the generations yet unborn,” he added.

The Senate chief said that while the Senate has posted a strong legislative performance in the past five years, he believes that more needs be done to propel the nation to greater economic, political and social heights.

“Since the beginning of the Aquino administration, we have worked hard to institute reforms needed to improve the economy, create a stable political environment and improve our social infrastructure.”

“But let us walk a mile more,” he stressed, enumerating a set of legislation to be prioritized in the last session.

Drilon then vowed that the Senate will make use of its remaining time to pass even more laws that will uplift the lives of Filipinos and improve governance.

According to the Senate chief, among the priority bills the Senate will examine the 2016 national budget, to ensure the steady flow of funding to vital government programs and services.

Drilon said that they will “scrutinize every fact and examine every figure in the proposed 2016 General Appropriations Act,” and assured the public that he will “see to it that the pork-barrel system is a thing of the past.”

The Senate, Drilon said, will also continue to “promote lasting peace and sustainable development in Mindanao through a Bangsamoro basic law that is fully consistent with our Constitution.”

On the economic front, Drilon said the Senate will address the gaps in the policy environment for public and private partnerships through the proposed build-operate-transfer law and the law on acquisition of rightof-way.

It will also work on the passage into law of the Customs and Tariff Modernization Act and the Tax Incentives Management and Transparency Act, to enhance trade and commerce.

The Senate leader added that they will also be giving focus on the improvement of public services, through the bill creating the Department of Information and Communications Technology to enhance the country’s communication services, and the proposed Pagasa Modernization Act, which seeks to equip the state weather bureau with state-ofthe-art facilities and technology.

Drilon underscored that it is crucial for the Senate to sustain its strong legislative performance throughout the last five years, noting the passage of many landmark and much-needed bills that have been passed into law within the present administration.

He said the Senate also fulfilled its pro-education agenda with the passage of the Enhanced Basic Education Act, the Iskolar ng Bayan Act, the Ladderized Education Act, the Open Learning and Distance Education Act, and the law authorizing the Open High School System.

Other key pieces of legislation passed by the Senate are the Maritime Industry Authority law, which saved the livelihood of more than 80,000 seafarers; the amendments to the Fisheries Code; and the law which raised the tax-exemption ceiling for 13th-month pay and other benefits from P30,000 up to P82,000. With PNA

PHL to host 10 more Apec meetings

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he Philippines is seen to host additional 10 meetings of the Asia-Pacific Economic Cooperation (Apec) 2015 Summit, Apec 2015 National Organizing Council Director General Ambassador Marciano A. Paynor Jr. said.

“Apec might add 10 more meetings for the Philippines to host,” Paynor said in Filipino during an interview with the Philippine government-owned television network PTV Network on Monday.

As of now, he said, the country is responsible for hosting 38 meetings under this year’s Apec Summit.

He added that the request for the Philippine government to host 10 more Apec meetings this year resulted from the good feedback on country’s hosting of recent Apec meetings.

The country launched its Apec 2015 Summit hosting in December 2014.

Only last week Apec workshop on infrastructure and capital market development was held in Iloilo City.

Paynor noted that the Apec hosting is one of the achievements of the Aquino administration as this will be a year-round opportunity for the Philippines to take the spotlight in showcasing what it can offer not only to the 21 Apec economies but to the world as well.

He stressed that Apec is an important economic bloc for the country as it accounted for $89 billion of the nation’s external trade and 60 percent of the its foreign direct investments.

The summit’s highlight will be the Apec Economic Leaders’ Meeting, the gathering of heads of Apec’s 21 member-economies, in November. PNA

news@businessmirror.com.ph

Belmonte embarks on final push for passage of economic Cha-cha bills

By Jovee Marie N. dela Cruz

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he leader of the House of Representatives on Monday appealed anew to members of the lower chamber to give economic Charter change (Cha-cha) a chance.

House Speaker Feliciano Belmonte Jr., during his speech at the opening of the third regular session, said that his Resolution of Both Houses 1 (RBH 1 ) will complement country’s inclusive growth.

“It is now in that same spirit that I urge you, our dear colleagues, to ensure that we finally pass resolution of Both Houses No. 1. By amending the restrictive economic provisions of our Constitution, we empower Congress to enact laws that will attract the kind of investments that will reverse the deindustrialization and de-agriculturalization of our economy,” Belmonte told lawmakers.

“Only then can we encourage locators and investors to expand our manufacturing sector, the area where the better-paying decent jobs can be created. This is the best strategy to ensure that no Filipino will be left behind,” he said.

In June the 16th Congress adjourned sine die without approving on final reading a resolution filed by Belmonte amending the economic provisions of the 1987 Constitution.

Belmonte said he had aborted the move to put RBH 1 to a vote due to lack of votes to ensure its passage.

According to Speaker the economic Cha-cha, which was backed by foreign and local business groups, is a larger contributor to economic growth as foreign direct investments (FDI) are seen to increase once ownership on estates and corporations, one of the issues raised by investors for not investing in the country, is relaxed.

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

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

Under Article XII of the Constitution, which ratified during the term of the President’s mother, then-President Corazon Aquino, foreign investors are prohibited to own more than 40 percent of real properties and businesses, while they are totally restricted to exploit natural resources and own any company in the media industry.

Belmonte, however, admitted that “it’s very tight to revive the [economic Charter change” due to lack of time.

Under the legislative calendar, Congress will adjourn from October 10 to November 2. The session will again resume from November 3 to December 18.

The third and last regular session of the 16th Congress is expected to be cut short because of the 2016 national and local elections in May next year.

Other priorities

Maragondon raft The municipal government of Maragondon, Cavite, has boosted its tourism drive by launching its bahay-kubo sa balsa

pulled by a boat along the Maragondon River. Tourists are free to cook, grill and prepare their own food while aboard the raft as it slowly cruises along the river. PNA

Meanwhile, Belmonte said the lower chamber will prioritize the passage of the following priority measures in the remaining

months of the year:

the proposed basic law on the Bangsamoro Autonomous Region (BLBar)

2016 P3.002-trillion national budget

creation of the Department of Information and Communications Technology

strengthening the build-operate-transfer law

Pag-Asa Modernization Act

Freedom of Information Act

Tax Incentives Management and Transparency Bill

Customs Modernization and Tariff Act

National Identification System

Prepaid SIM Card registration

Barangay Officials Welfare and Incentives Act

Philippine Immigration Act of 2015

the law adjusting the amount involved, value of property or damage on which a penalty is based and the fines under the revised penal code

the Healthcare Services Price Disclosure Act

the law that will ensure that each school division has a center for children with special needs According to Belmonte it is imperative upon Congress to address the long-standing grievances of the Bangsamoro people “by empowering them to fully provide for their selfexpression and development.”

“To the end of achieving peace, we are also committed to passing the BLBar. For far too long, the conflicts in the Bangsamoro have taken on different forms, rooted in passions that feed on discrimination and deprivations that are fueled by poverty. We must address the longstanding grievances of the Bangsamoro people by empowering them to fully provide for their self-expression and development,” he said.

“But this has to be complemented by clear and decisive legislative language to accommodate and empower not just the new majority of the Muslims in the Bangsamoro, but also for all other groups whose lives, family and work are located in these regionally autonomous areas of the Bangsamoro,” the Speaker added.

At least 20 members of the lower house are still set to interpellate the BLBar. The BLBar aims to create the new Bangsamoro juridical entity replacing the Autonomous Region in Muslim Mindanao.

Currently the proposed BLBar is under plenary deliberations at the House of Representatives, while the Senate version is under committee deliberations.

The lower chamber is eyeing to pass the BLBar in September.

While the lawmakers are busy deliberating the BLBar, Belmonte also urged his colleagues to “have the courage to finally come to peace with one another, and ourselves” by resuming peace negotiations with the Communist Party of the Philippines-National Democratic Front (CPP-NDF).

“As we work toward achieving real and lasting peace in Mindanao, we must also have the courage to finally come to peace with one another, and with ourselves, by exploring all avenues for peace, including the possibility of reopening peace negotiations with the CPP-NDF,” he said.

Work-life balance is Pinoy’s top concern in next six months–Nielsen survey shows

By Cai U. Ordinario

D

espite being the most optimistic in Southeast Asia, Filipinos remain concerned about maintaining work-life balance and job security in the next six months.

Based on the Consumer Confidence Index released by Nielsen, the top 3 concerns of Filipinos are work-life balance, job security and health in the next six months.

Compared to its neighbors in Southeast Asia, Filipinos were the

only ones that cited work-life balance as their top concern.

Other workers in the region, particularly Indonesians, Malaysians, and Singaporeans cited work-life balance as their second and third top concern.

Job security, meanwhile, was among the top 3 concerns of workers in the region such as Filipinos, Thais, Vietnamese and Singaporeans.

Health, on the other hand, was a top concern among Filipinos, Indonesians, Vietnamese and Singaporeans.

Nielsen’s data showed that Filipino consumers are the most confi-

dent in Southeast Asia and showed the second highest optimism globally in the second quarter with an index score of 122, surpassing the global consumer confidence score of 96 points.

Data also showed that the Philippines was the only market where consumer sentiment increased in the past quarter, gaining seven points to rise to a score of 122—the country’s highest level on record.

“An upsurge of revenues from the strong business-process outsourcing industry, an upswing in the construc-

tion sector, and strong consumption spending levels are fueling growth in the country,” said Stuart Jamieson, managing director, Nielsen Philippines.

Filipinos, Nielsen data showed, were also optimistic about local job prospects and an increase in their personal finances in the next 12 months.

Data showed that Filipinos optimism on local job prospects increased two percentage points to 75 percent from the previous quarter.

Optimism on personal finances, meanwhile, increased four percent-

age points to 81 percent from the first quarter.

Filipino consumers along with their Southeast Asian counterparts continue to be among the world’s most conscientious savers.

Consumers in Vietnam are the biggest savers globally (73 percent), consumers from the Philippines (72 percent) and Indonesia (69 percent) rank second and third and those from Singapore and Thailand (66 percent) tie in fifth place while consumers from Malaysia take the sixth spot globally.

Economy BusinessMirror

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Manila court freezes Smokey Mountain dump auction

By Joel R. San Juan

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HE Regional Trial Court (RTC) in Manila City issued a temporary restraining order (TRO) on Monday, enjoining the state housing firm Home Guaranty Corp. (HGC) from bidding out the 121,905-squaremeter Smokey Mountain dump in Barangay Vitas, Tondo, Manila.

In an eight-page resolution, Judge Jansen Rodriguez, presiding judge of Branch 6 RTC in Manila , granted the plea of petitioner-beneficiaries of the Smokey Mountain Dumpsite Reclamation Project (SMDRP) to stop the public auction of the property which was scheduled on Monday at 2 p.m.

The TRO will remain in effect for 20 days based on the resolution.

“It was the intent of the government to constitute the petitioners, and others similarly situated, as the beneficiaries of the SMDRP. Consequently, it is beyond question that the petitioners have a clear and unmistakable right or interest over the subject property,” the resolution stated.

Furthermore, the trial court held that HGC committed “material and substantial” violation of the petitioners’ right or interest over the dump when it filed complaint for ejectment against them and when it has offered the subject property for public auction without consulting them.

The trial court noted that, while HGC insisted that it is now the owner of the property by virtue of a deed of assignment and conveyance executed

by Planters Development Bank (PDB) in its favor, it failed to produce the copy of the same to support its claim.

“It appears, therefore, that the acts of respondent HGC will affect the petitioners before this court can decide on whether to issue a writ of preliminary injunction and further considering the urgency of the matter that immediate action should be taken, the court deems it property to grant the applica-

tion for a temporary restraining order,” the resolution stated.

The in Manila RTC in Manila has set the case for hearing on the prayer for the issuance of a writ of preliminary injunction on July 31.

The lower Court has also directed the HGC and co-defendants National Housing Authority Inc. to show cause why injunction should not be granted.

The case stemmed from a case filed by beneficiaries of the reclamation project questioning the move of the HGC to auction off the common areas in their permanent housing units, as well as the Smokey Mountain dump.

The beneficiaries also claimed that the HGC is also attempting to sell some other properties that are said to be part of the asset pool of the SMDRP which cannot be disposed by HGC as it is still part of several legal disputes with a property developer.

The deadline for the submission of bids for the other properties has been set on October 6.

They added that, while their housing units have been constructed and turned over to them, they have yet to receive the livelihood project promised to them under the SMDRP. T he petitioner-beneficiar ies said they were surprised to learn that the said area is now up for sale through a public auction by HGC and, HGC filed a complaint for ejectment against them.

The beneficiaries also said because of still-to-be-resolved disputes on the asset pool, the titles over their properties have not been released to them by the HGC. Siding with the beneficiaries, the court said it is issuing the TRO “to prevent threatened or continuous irremediable injury to some of the parties before their claims can be thoroughly studied and adjudicated. “[The] sole aim is to preserve the status quo until the merits of the case can be heard fully,” it added.

briefs 4th fuel price rollback for the month

OIL firms slashed anew the prices of petroleum products, the fourth time this month.

Eastern Petroleum Corp. was the first to implement a price rollback in gasoline and diesel by P0.65 and P0.55 per litter, respectively, effective at 6 p.m. on Monday.

Fernando L. Martinez, Eastern Petroleum chairman and chief executive, said oversupply of petroleum products in the world market continues to soften world oil prices.

“Analysts have indicated that prices may continue to remain stable at its current low levels up to August 2015. Thus, motorists can rest assured that local pump prices will be reflective of the price trend in the world oil market. However, prices for September appears to be on the upswing,” Martinez said.

Petron Corp., for its part, said it will implement a P0.60-per-liter reduction in gasoline and diesel. The price of kerosene, meanwhile, will go down by P0.45 per liter effective on July 28.

Phoenix Petroleum and PTT Philippines will implement the price rollback at 6 a.m. of July 28. They said separately that it will slash diesel and gasoline prices by P.60 per liter, respectively.

Seaoil, likewise, is going to implement a P0.60-per-liter cut in gasoline and diesel and P0.45 per liter for kerosene effective 12:01 a.m. of July 28.

The oil firms said the price rollback reflects the movement in the international petroleum market. Lenie Lectura

b.o.i. investment approvals up 20% at end-may

Investment approvals of the Board of Investments (BOI) from January to May has increased from a year ago, data from the Department of Trade and Industry (DTI) showed.

Investment pledges in the BOI in the first five months of the year jumped by 20.2 percent to P78.68 billion, from P65.46 billion the same period in 2014.

The BOI’s investment approvals shared 56.3 percent to the total investment pledges under the two investment promotion agencies (IPAs) under the DTI. The other IPA, Philippine Economic Zone Authority (Peza), had an approved investments worth P61.08 billion at end-May 2015.

Investment pledges in Peza decreased by 39.8 percent from last year’s same period amounting to P101.48 billion.

The slump in Peza-approved investments pulled the DTI’s IPAs performance in January to May this year.

Combined investment approvals of the BOI and Peza at end-May 2015 fell by 16.3 percent to P139.76 billion, from P166.94 billion in the same period in 2014.

The BOI and Peza are the country’s two major IPAs. PNA

yolanda rehab a priority–dbm The Department of Budget and Management (DBM) on Monday said the rehabilitation of Yolanda-affected areas remains an administration priority—both in the execution of key Yolanda projects and in the allocation of funds to support all rehabilitation initiatives—with a double emphasis on “building-back-better” and rapid postdisaster aid.

The budget agency also stressed that the national government’s rehabilitation program for Yolanda-stricken areas is supposed to be independent of political influence or affiliation, adding that the Aquino administration’s postdisaster aid is focused entirely on assisting Yolanda victims. PNA

Tuesday, July 28, 2015 A5

Mindanao grid’s water level improves but power-supply shortage prevails

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By Manuel T. Cayon | Mindanao Bureau Chief

AVAO CITY—The water level at the two major river sources of the Mindanao grid’s hydroelectric power plants has improved, easing the pressure on distribution and improving power cutbacks in the franchises of electric cooperatives and distribution utilities.

On Monday’s update posted in its web site, the National Power Corp. said the water level has increased to 358.94 meters above sea level (masl)

at the Agus 4 at the Ma. Cristina power plant junction of the Agus River in Baloi, Lanao del Norte, up from the weekend’s 358.31masl.

The minimum operation, or critical, level is at 357 masl.

This monitoring junction among the six power plants spread across the Agus River spanning Lanao del Sur and Lanao del Norte, was the only performing hydroelectric power plant over the last few weeks following the repair of Agus 6 and Agus 7 timed with the critically low water level at the Lake Lanao and its tributary river.

The water level at the mouth of the Lake Lanao remained at critical level though, despite the improved rainfall situation in many parts of Mindanao. From late last week’s 699.24 masl, the level went up to 699.27 masl, where critical level is pegged at 699.15 masl.

Even the Pulangui Power Plant

4 in Maramag, Bukidnon, has finally seen stable water supply, from below the critical level the entire week last week, to the current 285.4 masl.

The Davao Light and Power Co., on the other hand, announced in a posting that “due to the favorable weather and the higher allocation of power given by the National Grid Corp. of the Philippines, Davao Light customers may continue to experience shorter or no rotating power interruptions for the day.”

It warned, however, that “if one of the generating power plants will undergo emergency shutdown, rotating power interruptions will be implemented based on the announced duration.”

Hybrid extra long bus

Photo shows Hybrid Electric Road Train (HERT) making a wide right turn during its road test at the start of the 2015 National Science and Technology Week (NSTW) celebration on Friday at the SMX Convention Center grounds in Pasay City. Designed by Filipino engineers and powered by hybrid diesel and electric battery, the HERT’s four coaches can accommodate 60 passengers each, or a total of 240 commuters. PNA

Infra investments in Soccsksargen reached P30 billion in last 5 years

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ENERAL SANTOS CITY— The national government’s infrastructure investments in Region 12, or the Soccsksargen region, in the last five years have so far reached a record-high cost of nearly P30 billion.

Reynaldo Tamayo, Department of Public Works and Highways (DPWH)-Region 12, said on Monday such allocation covered for the construction and development of some 2,515 priority infrastructure projects that were approved for the region under the agency’s infrastructure program.

He said that 2,263 of these projects have already been completed and turned over to the beneficiaries.

Among those completed were major road networks, bridges and other structures that were deemed vital for the region’s socioeconomic development.

Region 12 covers the provinces of South Cotabato, Sultan Kudarat, Sarangani, North Cotabato and the cities of General Santos, Koronadal, Tacurong, Kidapawan and Cotabato.

“This is so far the biggest infrastructure investment that was poured into the region by the national government. It only shows that we are getting our proper share from the present administration,” he said.

Sona projects

Tamayo said the bulk of these investments were spent on the upgrading of national roads that were promised by President Aquino in his previous State of the Nation Address (Sona).

He said substantial funds were also released to the P1.135-billion city circumferential road project, which is targeted for full completion before the President’s term

ends in July 2016.

Mr. Aquino had twice inspected the progress of the project and has been personally monitoring its implementation, he said.

The other projects were the opening and concreting of tourism roads, the continuing expansion to four lanes of the region’s national highways and primary roads, as well as the concreting of the secondary roads.

A report released by DPWH-12 showed that it accomplished a total of 245 projects worth P3.87 billion in 2011 and an additional 264 worth P4.35 billion in 2012.

It implemented 1,264 more projects worth P6.56 billion in 2013 that included five tourism road projects worth P340.89 million.

In 2014 the agency received a total allocation of P6.08 billion for the implementation of 240 additional projects.

As of the end of June this year, DPWH-12 said 210 of these projects have been fully completed, 21 are still ongoing and one has yet to be started.

The agency has posted an accomplishment rating of 91.84 percent for its 2014 infrastructure program that is considered significantly higher than the national rating.

For 2015 DPWH-12 received an allocation of P9.22 billion for the implementation of 514 projects.

Tamayo said that as of June 30, a total of 222 projects have already been completed, 231 still ongoing and 61 have yet to be started.

He said such accomplishment is equivalent to a rating of 32.7 percent that is only short by 4 percent from the national target.

The official said the DPWH-12 is currently fifth among the country’s 17 regions in terms of overall

accomplishment for 2015.

“We’re currently working on some strategies to fast-track the implementation of these projects.

Hopefully we will reach a completion rate of 85 percent by the end of the year,” he said.

2016 infrastructure program

For 2016 DPWH-12 proposed for a funding of an additional P13.44 billion to fund the upgrading of more road networks and the construction of some vital infrastructure.

The additional allocation for next year will increase the government’s infrastructure investments in Region 12 to an all-time high of P43.3 billion.

David Padlan, DPWH-12 planning and design division head, said such funding was based on the projected construction cost for the identified priority projects in the area for the period.

He said they specifically allotted

Subsistence fishing

some P7.75 billion for the upgrading and concreting of 219 kilometers of national roads; P2.5 billion for the widening and concreting of 97.8 km of national roads; P1.1 billion for the construction of 631 lineal meters of bridges; P1.41 billion for 37 flood control and drainage projects; and P670 million for 30 km of tourism roads.

Sultan Kudarat will get the bulk of the proposed funding at P4.99 billion; followed by North Cotabato with P2.833 billion; South Cotabato with P2.72 billion; Sarangani with P2.05 billion; and Cotabato City with P755 million.

Padlan said the proposed allocation for 2016 increased by 41.39 percent from the approved budget for this year.

He said they increased the budget by 68.97 percent to facilitate the full funding of the ongoing concreting of primary and secondary roads within the region. PNA

Subsistence fishermen check on their fishnet as students and residents cross a hanging bridge in Maragondon, Cavite, on Wednesday. PNA

A6 Tuesday, July 28, 2015

Opinion BusinessMirror

editorial

The investment scams keep coming

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here seems to be three kinds of people who respond to solicitations for an investment scam.

The first is someone who apparently has not read a newspaper, listened to a radio broadcast, or watched television in the last year. This kind of investor must believe that the returns being promised by the scammers are normal, and it is just that he has not heard of such wonderful opportunity before.

The second type is convinced, as in the words of one “successful” investor, that “this company is, indeed, a blessing to me and my family,” as if the Divine Powers have finally rewarded his faith and good behavior.

The third may be like the shoplifter who decides to steal a pair of expensive sunglasses in a department store. This person understands that it is not all that it is presented to be and that there is a risk involved, but nonetheless decides that he is either lucky enough or smart enough not to get caught.

Of course, the key to success for investors in a fraudulent investment scheme is to be there first. By the time a few hundred people have posted pictures of their new cars earned from their “investment” on their Facebook pages, it might be time to wait for the next scam to be able to be at the top of the line.

However, the investment scams that make it to the evening television news and the front pages of newspapers are only part of the problem.

The Securities and Exchange Commission (SEC) warned last week that two more companies are violating the law by soliciting investments without proper registration and licenses. The firms have not been found to be fraudulent, but there is a strong possibility of another scam, because they do not have any legal basis for taking in investors’ money. The problem is that too many investors are not aware of what makes companies like them legal. People just assume that if a corporation has been registered with the SEC and has been issued local permits, it must be operating legally. Nothing could be farther from the truth.

If you are willing to take your chances with a potentially fraudulent firm, that is your choice. But serious and prudent investors will first contact the SEC to verify the legality of the company and its operation. A legitimate company will welcome, and even encourage, that sort of due diligence.

However, even the appearance of legitimacy may conceal a potential investment loss. The SEC just advised the public that the corporate life of Capitol Hills Golf & Country Club Inc. in Quezon City expired in 2010, and that its license to offer or sell securities was revoked in 2004. The company is undergoing liquidation proceedings before the Regional Trial Court in Quezon City, and current club share owners are trying to unload their ownership on the public.

If anything raises your doubts as to the legitimacy of an investment, do not proceed without checking with the SEC.

A businessman’s take on the economy Manny B. Villar

THE Entrepreneur

Second of a series

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etailing is one area that reflects the explosive excitement of tycoons, including other investors, domestic and foreign.

Global management-consulting firm A.T. Kearney notes that the traditional sari-sari stores still account for about 70 percent of the retail market, but “modern retailers are making headway,” with numerous international brands coming in, either through domestic retailers or through parent companies abroad.

Global brands that entered the Philippine market in 2013, according to A.T. Kearney, included clothing seller American Eagle Outfitters, international jeweler Claire’s, Korean bakery Tous Les Jours, Japanese conveniencestore chain FamilyMart and Hong Kong supermarket Wellcome.

A.T. Kearney included the Philippines in its 2014 Global Retail Development Index (GRDI), which selected 30 developing countries out of a total of 200. The 30 countries were chosen based on three criteria: 1. Country risk: lower than 110 in the Euromoney country-risk score; 2.

Population size: 2 million or more; 3.

Wealth: gross domestic product (GDP) per capita of more than $3,000. The GRDI placed the Philippines at No. 23.

Gover nment refor ms, according to the study, have improved the

Philippines’s business environment and put it on a growth trajectory. The study cited the stable political environment, an increasingly affluent population, strong liquidity and sustainable long-term infrastructure development, which are boosting consumer confidence.

Retail sales in the country, according to the study, are expected to surpass 10 percent per year over the next three years—in large part due to increasing disposable incomes, which are driving sales in nonessential items, such as apparel and luxury goods. Growth in the retail sector is not limited to Manila, but is spreading to other regions, like Southern Tagalog, Central Visayas, Southern Mindanao and Central Luzon.

In a separate report, global property portal Lamudi Philippines predicts that retail could be the next big thing in the

local real-estate industry. “Driven by Filipinos’ rising spending power, it looks that the Philippines’s retail boom is not showing any sign of slowing down,” Lamudi says. It cites data from the World Bank, which show the country’s annual per-capita GDP increasing from $2,480 in 2009 to $3,270 in 2013.

The big players in retail, like SM, Robinsons, Puregold and Ayala, among others, continue to grow their businesses either through acquisitions, expansion of existing networks, or venturing into other retail segments.

Makati-based conglomerate Ayala Corp. recently acquired 50 percent of Generika, one of the country’s largest chains of drugstores that sell generic drugs. Ayala’s entry in the drug-retail business came after forging a partnership with the Mercado Hospital Group, which will set up a chain of hospitals and satellite clinics in Ayala’s property projects.

The Rustan’s Group, through a partnership with Hong Kong-based Jardine Matheson, earlier acquired 49 percent of Rose Pharmacy, the Cebu-based chain of 238 drugstores.

Prior to the entry of Ayala and the Rustan’s Group in the drug business, tycoon Henry Sy Sr. was already operating the Watsons Personal Care Stores chain, and John L. Gokongwei the standalone chain of South Drug outlets.

Gokongwei-led Robinsons Retail Holdings Inc. (RRHI) is also allotting P6 billion this year to support the rollout of up to 300 small-format stores under its convenience-store chain Mini-Stop and mini supermarkets. RRHI is focusing on markets outside Metro Manila, where it

Terrain must determine tactics John Mangun

OUTSIDE THE BOX

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he outcome of World War II was determined in large measure by terrain, as much as it was by men and machines. Had the German military been able to take Moscow and push the Soviet forces farther east, it might have given Germany coal, iron ore, aluminum and Soviet weapons factories, far away from allied bombing raids.

The German invasion, code-named Operation Barbarossa, began in June 1941 and by December was over, giving a turning-point defeat for Germany. However, it was not so much that the German armies were defeated by the Soviet forces but that Hitler’s military was unable to adapt to the terrain.

The conventional wisdom is that Germany was defeated by a particularly bitter Russia winter. But the battle was lost long before the first snows. German tanks depended on narrow tracks to provide speed and mobility, and were not suited to the swamps and marsh-like terrain of eastern Russia when the rains came in autumn. The Russians call this season the rasputitsa—literally the “time without roads.” Nothing could be done about the weather, but different tactics

could have mitigated its effects.

Sixty-percent of the tanks in the Second Panzer Group were put out of commission by the mud. A division of Fourth Panzer Group, operating during the same period, lost 50 tanks without a shot being fired. Only 10 percent of all the tanks Germany first committed to Operation Barbarossa survived the autumn mud.

Art of War author Sun Tzu wrote, “We may be able to distinguish six kinds of terrain: accessible ground, entangling ground, temporizing ground, narrow passes, precipitous heights, positions at a great distance from the enemy.”

“Ground that can be freely traversed by both sides is called accessible. With ground of this nature, beat the enemy in occupying the raised and sunny spots,

and carefully guard your line of supplies.”

Accessible ground is the best stock-market “terrain.” Bid and ask spreads are tight. Posting volumes are not too heavily weighted to either side. Support areas— “your line of supplies”—are strong, and resistance and congestion areas are clear but not too heavy. Trading volumes are high enough to allow an easy exit for both profit-taking and cutting losses.

The opposite might be: “With regard to positions at a great distance from the enemy, it is not easy to provoke a battle, and fighting will be to your disadvantage.” Be careful when the spread is too large.

“Entangling ground: From a position of this sort, if the enemy is unprepared, you may sally forth and defeat him. But if the enemy is prepared for your coming, and you fail to defeat him, then, return being impossible, disaster will ensue.”

It is always easy to get into a position.

But, if volume and liquidity suddenly dries up, you will be stuck in a position that you cannot get out of. Profits only come when you can sell, and if the spread is large or postings are thin, you could be trapped in a position unable to take a profit or to cut a loss.

“When the position is such that neither side will gain by making the first move, it is called temporizing ground, and the situation remains at a deadlock.

In a position of this sort, even though the enemy should offer an attractive bait, it will be advisable not to stir forth.”

sees a lot of room for growth.

Citing a report from the Wall Street Journal, Lamudi says the number of convenience-store brands has grown from two in 2012 (7-Eleven and Mini-Stop) to seven at present. The new entries are FamilyMart, All Day, Circle K, Alfamart and Lawson.

The number of convenience stores in the Philippines is expected to double from around 2,000 in 2014 to 4,000 by 2018, according to Lamudi. Undisputed 24/7 convenience-store leader 7-Eleven ended the first quarter of 2015 with 1,341 stores, up from 1,049 last year.

It is increasing its capital expenditure budget by 50 percent to P3 billion this year to maintain its leadership, and is focusing on Davao and Cagayan de Oro for expansion.

Publicly listed Cosco Capital Inc. plans to expand its retail-store network by 50 percent in the next five years, or 15 stores per year up to 2019, bannered by flagship Puregold stores, which ended 2014 with 238 stores. The expansion plan will also include the membership-only shopping club S&R. For its part, Ayala Land Inc. (ALI) plans to spend P300 million for the rollout of 100 outlets of Japanese convenience-store chain FamilyMart, beginning with 30 stores. The local FamilyMart franchise is a joint venture with Japanese conglomerate Itochu and the Rustan’s Group.

To be continued

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

Every stock trader has encountered “temporizing ground” in the market. The price runs up several fluctuations, and then seemingly out of nowhere comes a huge sell order. No matter how high the posting volume on the bid side might be, the price cannot go higher, until someone is willing to buy a lot of shares at the price of the large “ask.” The fear is that you never know how much more stock might be available at that same price that needs to be bought out.

“With regard to precipitous heights, if you precede your adversary, occupy the raised and sunny spots, and there wait for him to come up. Remember, if the enemy has occupied precipitous heights before you, do not follow him, but retreat and try to entice him away.” I see this as telling us not to be too anxious to hit the ask side when opening a position and be equally anxious to sell into the bid.

Patience can gain you a fluctuation or two, and they all add up in the long run.

Machiavelli said this about how important terrain is to success. “The Prince must also learn the nature of the terrain, and he should devote much attention to such activities.” That also applies to the stock market.

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

Tuesday, July 28, 2015

A7

Congress alarmed by Iran Democracy and the educated unemployed pact’s secret understandings

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By Eli Lake & Josh Rogin | Bloomberg View

s the White House campaign to persuade Congress about the wisdom of its Iran nuclear deal moves into its second week, important components of the complex agreement are emerging that will be shrouded from the public and, in some cases, from the US government itself.

The existence of these secret clauses and interpretations could undermine the public’s trust in the Barack Obama administration’s presentations about the nuclear pact.

Already, Republicans and other critics of the deal have seized on the side agreements between Iran and the International Atomic Energy Agency (IAEA) as a weakness in the deal closed last week in Vienna.

The controversy began on Wednesday, when Secretary of State John Kerry told House lawmakers behind closed doors that he neither possessed nor had read a copy of two secret side deals between the IAEA and Iran, according to Rep. Mike Pompeo, a Republican member of the House Intelligence Committee who was inside the session.

Congress hasn’t seen those side agreements either.

“Kerry told me directly that he has not read the secret side deals,” Pompeo told us in an interview. “He told us the State Department does not have possession of these documents.”

In other cases, secret understandings were provided to legislators. Congress on Monday was given a set of nonpublic interpretations of the Iran deal, according to House and Senate staffers who have seen the documents.

These were part of 18 documents the White House provided to Congress as required under legislation passed this spring that gives Congress 60 days to review the Iran deal.

Of the 18 documents, six are classified or confidential, the staffers told us.

These include secret letters of understanding between the US and France, Germany and the UK that spell out some of the more ambiguous parts of the agreement, and classified explanations of the Iran deal’s provisions that commit other countries to provide Iran with research and development assistance on its nuclear program. There is also a draft of the US statement to be made public on the day the Iran agreement formally goes into effect.

Those are the secret understandings Congress and the administration have put on paper. But in the case of the side agreements with the IAEA, Congress and the Executive branch may not have all the facts. In Wednesday’s closed session, Kerry sparred with Pompeo, who last weekend traveled with Republican Sen. Tom Cotton to Vienna to meet with IAEA officials.

Those agency representatives told the lawmakers that the two secret side deals covered how the IAEA would be able to inspect the Parchin military complex, and how the IAEA and Iran would resolve concerns about the possible military dimensions of Iran’s nuclear program.

The briefing for lawmakers was classified, but the Kerry-Pompeo exchange was not. Pompeo pressed Kerry on the details of the side agreements between the IAEA and Iran. Kerry acknowledged he didn’t know all of the specifics.

A statement distributed by the State Department on Wednesday disputed the characterization that the agreements between Iran and the IAEA were “secret.” Instead, it described them as “technical arrangements” and said US experts were “comfortable with the contents,” which the State Department would brief to Congress if asked.

“It is standard practice for the IAEA and member-states to treat bilateral documents as ‘safeguards confidential,’” the State Department statement said. “This is a principal the United States has championed throughout the IAEA’s existence to protect both proprietary-and proliferation-sensitive information. We must be able to ensure that information given to the IAEA does not leak out and become a how-to guide for producing nuclear materials that can be used in nuclear weapons, and that countries know their patented or proprietary information won’t be stolen because they are released in IAEA documents.”

But, while these agreements may be standard operating procedure in the case of other IAEA nuclear inspections, with Iran it’s potentially more serious. On Thursday during an open session before the Senate Foreign Relations Committee, Republican Sen. James Risch said his understanding was that one of the IAEA-Iran side agreements would allow Iran to take its own environmental samples at Parchin. Speaking around the specifics, Sen. Bob Corker, the Republican chairman of the committee, compared this arrangement to the National Football League allowing athletes suspected of taking steroids to mail in their own urine samples.

Kerry and others have told Congress that the agreement about Parchin and the understandings about IAEA inspections, in general, are largely technical and do not weaken a strong agreement. Needless to say, Pompeo disagrees. “Kerry gave no indications they are seeking these documents, and there is no indication he is the least bit worried he doesn’t have access to this. The Ayatollah knows what’s in the deal, but we don’t,” he told us, referring to Iranian Supreme Leader Ali Khamenei.

For the Obama administration, not having copies of the side agreements between Iran and the IAEA is convenient. The law requires it to give Congress all the documents it possesses, and only those documents. If the side agreements are outside the reach of Kerry, they are outside the reach of Congress and the American people.

On the other hand, that fact undermines Obama’s argument that the overall deal can be verified and is transparent. Already, Iranian leaders have publicly spoken about the Iran deal in terms vastly different from their American counterparts. The existence of secret understandings of that deal will only exacerbate this tension over time.

Edgardo J. Angara

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recent Deloitte global survey found that in emerging markets like the Philippines, more than 6 out of 10 millennials—defined as those born January 1983 onward, degree-educated and currently in full-time employment—aspire to become the “leader or most senior executive within their current organization.” This ratio was higher than in developed markets, where only 4 out of 10 of their counterparts said the same.

Our ambitious millennials face an uphill battle, however. The Deloitte survey also showed that the higher education they received only contributed 40 percent to the

fulfillment of their day-to-day roles and responsibilities in their respective workplaces.

Schools and industries remain disconnected, resulting in a growing

T

he flash deal was unlike any that had appeared before on the Chinese group-buying web site Juhuasuan: Qualified young men could be paid as much as 5,000 yuan ($805) for making a donation to a governmentrun sperm bank. The colorful advertisement only appeared for two days on the site owned by the e-commerce titan Alibaba, but it received 22,017 responses.

In China, where public discussion of sex remains tightly controlled by the government, the pitch was the equivalent of a cry for help. The country’s infertility rates are rising rapidly among couples of childbearing age, reaching 12.5 percent in 2012, compared with 3 percent in 1992,

according to a government study.

There are about 40 million infertile couples in China, as well as a chronic shortage of sperm donations.

The causes of China’s infertility problems haven’t been established. But among the public, government and the scientific community, there is growing suspicion that chronic pollution is to blame. In addition, a decadelong study at Shanghai’s government-run sperm bank showed that the quality of the sperm being collected was in decline, suggesting that unhealthy lifestyles—the high rates of smoking and drinking among Chinese men—might be contributing to the shortage. There also is speculation that rising infertility reflects the trend of China’s upwardly mobile couples having children later in life.

Asia Pacific remains a bright spot for democracy. The Economist Intelligence Unit registered the region as the best-performing in its 2014 Democracy Index. The 2015 Freedom in the World report showed that Asia Pacific has been the only region to record steady gains in political rights and civil liberties over the past five years.

But for democracy in Asia Pacific to remain relevant, it must cater to our young ones. The 2013 Asian Barometer Survey showed that, for the average Asian youth, democracy means good governance and social equity, rather than a set of legal norms (“rule of law”) or procedural considerations. This is a vital lesson, especially for our political leadership.

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

Eye clinic sees red over PhilHealth allegations treatment: “We are certain they will find everything in order.”

Ernesto M. Hilario

ABOUT TOWN

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T the weekly news forum I cohost with Party-list Rep. Jonathan de la Cruz of Abakada, the president/CEO of the Quezon City Eye Center (QCEC), Dr. Raymond Evangelista, came last Saturday to clear the air regarding allegations of fraud hurled by Philippine Health Insurance Corp. (PhilHealth) against clinics performing cataract-surgery procedures.

Evangelista reiterated his earlier stand that his facility had always adhered to the highest professional and ethical standards.

PhilHealth had claimed that the big increase in the number of cataract operations in some eye clinics had given rise to bogus claims, which the state-run agency had decided to suspend.

Evangelista said the amounts cited by PhilHealth are bloated and “grossly inaccurate.”

He told the media earlier: “I am willing to submit all our financial documents, including our records of payments, to the Bureau of Internal Revenue, showing the actual amount of our claims and what we have actually received from PhilHealth.”

He said there was a discrepancy of almost P46 million between what PhilHealth said his clinic had received and what its own records show.

PhilHealth’s decision to withhold payments to them was done without due process, Evangelista pointed out.

The ophthalmologist lamented that thousands of cataract patients, many of whom are senior citizens automatically covered by PhilHealth, would be deprived of free cataract surgeries, which is one of the benefits they are supposed to enjoy as PhilHealth members.

Thus, he added, the cataract patients would have to look for other eye clinics, where they are likely to be charged higher rates than the minimum P16,000 percataract procedure offered by QCEC and other clinics.

Evangelista said the proposal of PhilHealth and the Department of Health to limit the number of patients that ophthalmologists can operate on is “antipoor,” as they are likely to choose affluent patients, leaving the cataract sufferers with meager means no choice

but to forgo expensive eye surgery and, thus, eventually go blind.

When the controversy over the cataract surgeries was first reported in the media in May, lawyer Lorna Kapunan defended QCEC: “It is good for PhilHealth and the Department of Health to continuously monitor and audit its accredited institutions. The safeguarding of funds meant for the poor and senior citizens is a must. To insinuate, however, that the QC Eye Center is engaged in fraudulent acts is grossly unfair and prejudicial to the dedicated professionals who provide quality and successful cataract operations at the lowest possible cost.”

“The high number of patients treated successfully attests to the fact that the QC Eye Center is favored by the poor and recently by senior citizens, because it charges even lower than some government hospitals,” she added.

The QCEC specializes in cataract surgery for the poor and senior citizens.

It was established in 1997 and was accredited by PhilHealth in 2002.

It has provided affordable and reliable services to over 35,000 mainly poor and indigent patients, thus restoring the vision of patients with cataracts in a facility with modern equipment similar to those offered by clinics and hospitals that charge much higher fees.

The recent inclusion of all senior citizens in PhilHealth coverage has, as expected, resulted in a significant spike in cataract surgeries. Despite PhilHealth’s suspension of claims for cataract surgeries, the clinic, Evangelista said, reiterates its commitment to provide expanded quality medical services to the poor and disadvantaged.

Evangelista said PhilHealth and the DOH are welcome to check their records to determine whether patients undergoing treatment in QCEC really require

The ad that cracked China’s infertility taboo

By Adam Minter | Bloomberg View

population of educated unemployed.

April 2015 official data showed that up to 35.3 percent of the unemployed have actually reached college or any post-secondary level of education.

In short, we remain unable to meaningfully prepare our youth for the world of work. This disenfranchises our young. If this goes unabated, the youth’s anger will sow more disrespect and apprehension with political leaders and democratic institutions.

I emphasized this point during the recent Leaders’ Meeting in Mexico City of Centrist Democrat International (CDI), the largest network of conservative and moderate political parties in the world.

As a CDI executive board member and vice president for Asia Pacific, I assured my colleagues that

Whatever the cause, China’s infertility rates are about the same as those in Europe and North America.

The similarities end there, however.

China’s so-called one-child policy places a unique burden on couples to honor the deeply held cultural and familial obligation to perpetuate a family bloodline. And the question of sperm donation is particularly fraught. For recipients, it can be an embarrassment, or perceived as the severing of the blood link between a husband and his family (the focus on bloodlines is also why Chinese families adopt at such low rates). For donors, there is an extreme reluctance to pass on a family bloodline blindly, to produce children who won’t be known to biological fathers, who then wouldn’t be able to fulfill

their familial responsibilities.

This reticence on the part of donors accounts for some of the shortages of sperm regularly reported by China’s 19 state-run sperm banks. The discomfort also is reflected in the government’s tight grip on these institutions. Regulations require that donors be between 22 and 45, in good health, disease-free and not gay or foreign nationals. The donors’ sperm count is required to be three times that of an average healthy male, as defined by the World Health Organization.

Some provinces impose requirements that are even more stringent. For example, the center in Jiangsu Province restricts donations to nonworking men— usually students—because career men (or, at least those who want to donate) are suspected of unhealthy lifestyles.

The cat is out of the bag

WE were given to understand by the motley group that had, from the very beginning, opposed the use of Precinct Count Optical Scan (PCOS) machines in the first nationwide automated elections in this country in 2010 that its members were genuine reformers who simply wanted to make our electoral process free, fair and credible. Now, their ulterior motive in throwing everything but the kitchen sink at Smartmatic, the purveyor of the PCOS technology, has surfaced: They are not in it for some noble or high principle, but for purely pecuniary gain.

The Automated Election System Watch, the group headed by former Commission on Elections (Comelec) Commissioner Gus C. Lagman had proposed a hybrid system for 2016, where the voting and the counting at the precinct level would be manual, while the tallying of the votes from the municipal to national levels would be automated.

But the hybrid system they wanted the Comelec to adopt, namely, the Precinct Automated Tallying System (PATaS) and the Transparent Election System (TAPAT), left officials of the poll body unimpressed.

PATaS and TAPAT are supposed to be fine-tuning what they had previously called the Open Election System and Transparent and Credible Election System. However, instead of being less costly and more reliable than the PCOS technology, these could turn out to be more expensive, as it would cost no less than P16 billion.

The Comelec subjected PATaS to a demo in a mock election in Bacoor City in Cavite on June 27. After two hours of the counting, only 20 to 25 ballots were counted. Rep. Fredenil Castro, chairman of the House Committee on Suffrage and Electoral Reforms, opined after witnessing the slow proceedings that PATaS could not possibly “match the advantages of a fully automated election,” as the vote-counting had proceeded at a “turtle’s pace.”

The poll body also conducted a demo of TAPAT on July 20 at the Pamantasan ng Lungsod ng Maynila in Intramuros, Manila, with Comelec Chairman Andres D. Bautista and newly appointed Commissioner Rowena V. Guanzon in attendance.

TAPAT uses computer tablets to scan lotto-style ballots, in which votes are

That means about 80 percent of sperm donors are turned away, and, as of 2012, 1,000 couples were on a waiting list that was a year and a half long.

Perhaps, the biggest hurdle is the government’s insistence that a single donor’s sperm can only be used for the conception of five children. The regulation was imposed to ensure that children from the same donor father don’t have any chance of becoming mates as adults. But it exceeds most international standards for donor sperm. For example, the American Society for Reproductive Medicine recommends a limit of 25 children per population of 800,000. The UK cap is 10 children.

Alibaba’s flash promotion won’t make a dent in the problem. The men who signed up will still be subjected to

indicated through shading and later to print out voted verified-paper audit trail, or VVPAT, receipts summarizing the respective voters’ chosen candidates.

Bautista spent just five minutes in casting his vote, but expressed fears that the verification receipts (VRs) would make TAPAT vulnerable to vote-selling and vote-buying, or a return to the old ways that bedeviled previous elections in this country.

In a hearing conducted by the House Electoral Reform Committee, chaired by Rep. Fredenil Castro, on July 9, Comelec Commissioner Christian Robert S. Lim cited four reasons why Comelec has junked the adoption of any hybrid system.

First, the P16-billion PATAS would cost more than the refurbishment of existing PCOS machines or leasing new optical mark readers.

Second, using a hybrid system is illegal, as existing laws—Republic Act (RA) 8436 and RA 9369—provide for full automation.

Third, the manual voting procedure in hybrid systems consumes too much time, is too laborious and prone to human error.

And, fourth, the hybrid software is still in the development stage and could take more than a year to fully develop, or months after the May 2016 general elections.

Aside from being too costly, impractical and error-prone, the hybrid system suffers from yet another defect: It is not acceptable to the electorate nor to the public-school teachers who oversee the elections at the precinct level.

A survey conducted by the Catholic station Radio Veritas in April and May this year revealed that 64 percent of the 1,200 respondents were against returning to manual counting of votes. Only 20 percent of the survey respondents preferred the manual system.

The survey respondents included public-school teachers who served as Board of Election Inspectors in previous elections. A total of 76 percent of the public-school teachers rejected the return to manual counting of ballots.

Now that the hybrid electoral system is out of the question, and its adherents exposed as incompetent salesmen of a defective electoral system, we hope the Comelec will go about its job of ensuring free, fair and credible elections using full automation.

E-mail: ernhil@yahoo.com.

the rigorous health checks required by national and local law. And many others, who signed up as a lark or were lured by what they believed would be easy money, will probably drop out. At best, the ad could contribute to easing the stigma attached to sperm donations.

Most of the impediments to access to donated sperm would be lifted if the government opened the system to private competition. China already has a thriving if unsavory black market in human sperm, and Chinese state media reports that Chinese women are increasingly making use of overseas sperm banks and IVF clinics. A system that was calibrated to Chinese sensitivities could meet the needs of millions of couples while providing Alibaba with a real opportunity.

2nd Front Page BusinessMirror

A8 Tuesday, July 28, 2015

www.businessmirror.com.ph

Inflation seen falling P-NOY GETS HIGH MARKS FROM BUSINESS GROUPS to below 1% in July Continued from A1

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By Bianca Cuaresma

lthough price pressures have significantly decelerated in recent months and has, in fact, touched a 20-year low in June, inflation, or the rate of change in prices, could plunge as low as 0.5 percent in July, the Bangko Sentral ng Pilipinas (BSP) said on Monday.

BSP Gov. Amando M. Tetangco Jr. said in a statement that, while commodity prices have headed south, inflation was to moderate yet again and could range even lower from 0.5 percent to no more than 1.3 percent.

This compares with actual inflation averaging 1.2 percent under the June survey, which was reported earlier by the Philippine Statistics Authority (PSA).

“Following the significant de-

celeration in inflation in June, BSP forecasts suggest that July inflation could remain low and settle within the 0.5 percentto-1.3 percent range,” Tetangco told reporters.

“Dow nward pressure could come from the lower local pump prices and power rates for the month,” he added.

Inflation dipped to a then new low in May to 1.6 percent, but was promptly upset by yet another

record low of 1.2 percent the following June. Should the low end of the forecast comes to pass, the average inflation in the first seven months will prove lower than the official target range of 2 percent to 4 percent.

Should inflation in July average 1.3 percent as forecast, the sevenmonth inflation rate will average 1.9 percent and still below the government target range.

Inflation has consistently dipped in recent months, as lower food and oil prices, as well as so-called base effects, came into play.

In an earlier second-quarter report on inflation, the BSP said the rate will likely ramp back up to around 2 percent in the final three months of the year.

“The BSP will continue to monitor domestic and global developments to ensure that the policy stance remains supportive of price stability conducive to a balanced and sustainable economic growth,” Tetangco said.

The PSA is set to release the July inflation data in the first week of August.

“In trade and investments, it’s an 8 [out of 10], because he has brought us investmentgrade status, as well as increased our global competitiveness ratings, leading to more foreign direct investments [FDI],” Peter Angelo Perfecto, Makati Business Club (MBC) executive director, said in a text message to reporters.

The President did not get the perfect score from the MBC executive, because infrastructure woes continue to burden the business community and reforms in the Bureau of Customs remain unaddressed.

Management Association of the Philippines President Francisco “Popoy” del Rosario similarly gave high marks to the Chief Executive for the economic gains achieved by Mr. Aquino and his Cabinet.

“I give him a 9. I agree with the economic achievements cited, especially gross national product growth, national competitive rankings, stable ranking system, and rollout of PPP [private-public partnership] infra projects and increased FDI,” del Rosario said.

However, issues of concern remain, added del Rosario, as job creation, closure of major legal cases, peace in Mindanao and the China territorial conflicts are still threats to the country’s attractiveness.

The businessmen also acknowledged the gesture of President Aquino in recognizing the efforts of his Cabinet members as a good management and leadership practice.

The Federation of Philippine Industries gave President Aquino a score of 8 for improving the economic climate in the country and ushering in record FDI in 2014.

“The President was able to clearly communicate what his administration has managed to deliver so far in line with their original contract with his bosses of a daang matuwid. I believe this was probably his best Sona speech, and I hope that this will mean that we can expect more from the final year, even as elections fast approach. I am still hopeful that key infrastructure PPPs will roll out and legislative priorities, like the antidynasty bill, BBL [Bangsamoro Basic Law], FOI [Freedom of Information], BOT [Build-Operate-Transfer] law amendments, CMTA [Customs Modernization and Tariff Act] and DICT [Department of Information and Communications Technology] will prosper,” Perfecto said.

“I think the Sona achieved the President’s purpose of reminding our people of the gains of the last five years, while urging us to continue to build on what we have achieved. He told us that while much has been accomplished, we’ve only just begun! I think it was successful as an inspirational message,”del Rosario commented.

Employers Confederation of the Philippines President Edgardo Lacson said: “There is, indeed, a long list of accomplishments by the present administration, as reported in the Sona, which the nation appreciates.

But the quest for progress and prosperity is a never-ending journey, and no one president can lay claim to have achieve all the goals he sets at the start of his term. Much more are expected and need to be done, and new challenges must be faced by all succeeding administrations with deep commitment and political will. There is universal agreement that every president leaves a very important legacy that benefits our country.

However, history always takes a long time to pass its judgment for outgoing presidents. Good governance, as articulated in daang matuwid is a fundamental principle that must be nurtured by the incoming president and all those coming after him. The people expect no less.”

Economists believe that the President’s Sona lacked explanations for the administration’s shortcomings and budget woes.

University of Asia and the Pacific economist Victor Abola said the Aquino administration did register impressive economic growth compared to previous post-Marcos administrations; much of these were brought about by the changes instituted by previous administrations.

“Certainly, [growth] in these last five years has been faster than in the previous administrations, at least since Marcos’s time.

But we have to remember that he inherited an economy that was in the best condition than any president after Marcos,” Abola told the BusinessMirror in a phone interview on Monday.

“In terms of reserves, in terms of GDP [gross domestic product], in terms inflation, in terms of interest rates, it was already low in 2010. It just got better, but we don’t know if it was really so much better, according to our potentials, because we may be doing better, than our past, but not really our potential,” he added.

Abola also said that, while the President did mention the achievements of the PPP initiative,

he failed to recognize the shortcomings of the program.

The economist said the PPPs were hounded by implementation delays through slow processes or legislations that prevent the continuation of projects.

Abola said these delays and policies, like the antimining executive order and the belated recognition of the importance of foreign direct investments to grow the economy, have made the Aquino administration seem antibusiness.

“It shows that, actually, the bottom line for me is he has not been very friendly to business.

[This happens] if you violate basic needs of business,” Abola said.

Former Philippine Economic Society President Alvin Ang said the President also failed to talk about the budget.

Ang said it would have been a good opportunity to discuss how the current administration intends to maximize the government’s resources and remaining time in office.

He said the country continues to struggle with infrastructure problems, which could be addressed by public or government projects that could be completed in the remainder of the President’s term.

Problems, particularly on the administration’s poor use of public funds, have been the major reasons the economy has not exhibited robust growth.

Data from the Philippine Statistics Authority showed that public construction contracted 24.6 percent in the first quarter this year, from a growth of 17.5 percent in the same period in 2014.

Ang added that the President could have also talked about income-tax reform. He said this is crucial, especially because this would benefit the middle class.

In 2013 in the study titled “Will the Recent Robust Economic Growth Create a Burgeoning Middle Class in the Philippines?” former National Statistical Coordination Board Secretary-General Romulo A. Virola said 24 percent of the population was considered part of the middle class.

More than half of the population of Metro Manila, on the other hand, is part of the middle class. Further, less than 70 percent of families living in the National Capital Region and Region IV-A belong to the low-income class.

Catherine N. Pillas, Cai U. Ordinario

Aquino bares final list of priority bills Continued from A1

to the BBL, saying doing otherwise would mean that it would simply guarantee that the country may not enjoy peace.

“There are a number of measures which I hope will be passed during the 16th Congress. Foremost of these is the Bangsamoro basic law. To those who oppose the measure, it is your obligation to suggest a better alternative,” he said in the vernacular.

He also urged Congress to pass the RFI bill, a measure that wou ld streamline ta x brea ks given to businesses to ramp up government revenues.

“We call on Congress to immediately pass the Unified Uniformed Personnel Pension Reform Bill so that the national government can fund the pension of our men in uniform,” Mr. Aquino said.

Funding the pension of uniformed personnel, he said, would require trillions of pesos and an enabling law is needed before the national govern-

ment could release funds.

Mr. Aquino voiced hope that the 2016 budget bill would quickly get the nod of lawmakers so that progress would not be derailed on the last year of his administration.

The President then thanked Congress for passing several administration-endorsed bills, including the new Competition law, the Cabotage law, the reproductive-health bill, the “sin” tax law.

Mr. Aquino acknowledged that “a responsible Congress can truly go a long way in helping push reform and progress.”

He also enumerated his administration’s achievements such as the “record rise” in foreign direct investments (FDI) to P2.79 trillion from 2010, saying this is a “clear indicator” of restored investors’ confidence in doing business in the Philippines.

The President noted that FDI rose significantly last year, citing a Bangko Sentral ng Pilipinas report on net FDI inflows from January to November 2014, amounting

Anemic trading. . . enough impetus to push prices past their recent highs,” said Justino Calaycay Jr., trader at Accord Capital Equities Corp.

Traders said share prices plunged, as investors dumped shares of BDO Unibank Inc., the country’s largest lender, after it reported earnings below market expectations. Inves-

to $5.7 billion from $3.5 the previous year.

“Now, for the first time, we were given investment grade status,” Mr. Aquino said, sending signals to investors about better prospects of doing business in the country.

He also credited the steady rise in revenue collection that enabled the government to bankroll various public works projects to boost business environment for the benefit of the people.

“Dumating tayong pinakamataas na sa kasaysayan ang P778.6 billion na koleksyon noong taong 2008. Tinambakan natin ito. Noong 2012, P1.06 trillion ang nakolekta ng BIR [Bureau of Internal Revenue], ang unang pagkakataon sa kasaysayang tumawid ng isang trilyong piso ang ating koleksyon,” he said.

“Nitong nakaraang taon umakyat na ito sa P1.3 trillion at aabot pa sa P1.5 trillion ang malilikom ngayong 2015.

Limang taon lang ang kinailangan para mapantayan, mahigitan at halos madoble ang pinakamalaking nakolekta ng ating sinundan,” Mr. Aquino added.

Continued from A1

tors dumped BDO shares, which have a stronger weight in the PSEi. BDO was down 3 percent, or P3.40, to close at P101.50. Other than the BDO, there were no other impetus for traders to trade.

“Externally, news has started to feed fresh influences deemed generally negative—or at least not induc-

ing optimism,” Calaycay said.

Most of the other actively traded shares also dropped. Semirara Mining and Power Corp. was down P1 to P119; Universal Robina Corp. lost P1 to P190.50; Globe Telecom Inc. was steady at P2,526; Manila Electric Co.; was up P3.20 to P298; and Ayala Land Inc. fell P1.10 to P37.80.