BusinessMirror December 21, 2015

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Thursday 18, 2014 Vol.21, 10 No. 40 Monday, December 2015 Vol. 11 No. 74

Tougher year ahead for banana exports

By Manuel T. Cayon

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INSIDE

jane fonda

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Mindanao Bureau Chief

AVAO CITY—Stiffer competition, supply glut and the searing El Niño heat stare the country’s banana exporters in the face in 2016, all contributing to make Philippine harvests less palatable to their traditional markets next year.

holiday style

This was the bold prediction of the Pilipino Banana Growers and Exporters Association Inc. (PBGEA), the main aggrupation of 29 major plantation players, following an unpromising market-intelligence analysis that points to a sluggish exports next year.

Stephen A. Antig, president of PBGEA, said a supply glut is expected, as the world’s two biggest economies —China and Japan—have begun developing their own plantations Continued on A2

special report

P25.00 nationwide | 3 sections 16 pages | 7 days a week

BELMONTE: IT’S ABOUT QUALITY NOT QUANTITY

By Jovee Marie N. dela Cruz

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peaker Feliciano Belmonte Jr. has a ready explanation why the 15th and 16th Congresses under the leadership of President Aquino have only passed 62 laws in a span of close to six years—they focused on quality and responsive legislation rather than quantity.

“Hindi ito paramihan ng numero [this is not about the numbers]. We just did what was needed by our people,” he said.

Belmonte said the “gamechanging laws” that they passed— all aimed at bolstering the competitiveness of the Philippines and sustaining economic growth that made the nation one of the best performers among the emerging economies—were: ■ Republic Act (RA) 10149—An

Act Promoting the Financial Viability and Fiscal Discipline in Governmentowned or -Controlled Corporation (signed on June 6, 2011); ■ RA 10150—An Act Extending the Implementation of the Lifeline Rate (signed on June 2, 2011); ■ RA 10151—An Act Allowing the Employment of Night Workers (signed on June 21, 2011); ■ RA 10153—An Act Providing the Synchronization of Elections in the Autonomous Region in Muslim Mindanao (signed in June 2011); ■ RA 10157—The Kindergarten Education Act (signed on January 20, 2012); ■ RA 10167—An Act Further Strengthening the Anti-Money Laundering Law (signed on June 18, 2012);

■ RA 10168—An Act Defining the

Continued on A4

Now in the Philippines BusinessMirror

Traffic along Edsa builds up, especially after workhours, as mall hours have been extended to midnight for the Christmas rush. Experts, however, believe the Christmas traffic would become Metro Manila's new normal. Stephanie Tumampos

life

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By Lorenz S. Marasigan

Tabuena rules open

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BusinessMirror

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| MondAy, deceMber 21, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph editor: Jun lomibao

Gasol leads Grizzlies to victory

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Elite down Enforcers for first quarters stint

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EMPHIS, Tennessee—Memphis’s Marc Gasol had 19 points and 12 rebounds to guide the Grizzlies to a 96-84 win over Indiana on Saturday, preventing the Pacers from closing in on the National Basketball Association (NBA) Central Division lead.

The Pacers dropped two games behind pacesetter Cleveland, but retained second place in the division because Chicago also lost, beaten convincingly at New York.

Also on Saturday Houston built a huge early lead and coasted to victory against the disappointing Los Angeles Clippers.

Memphis’s Matt Barnes finished with 15 points and 10 rebounds for the Grizzlies, who moved within a game of Dallas for second place in the Southwest Division.

Paul George led the Pacers with 29 points, despite going eight-of-22 from the field.

Houston bounced out to a 26-point lead in the first half and was untroubled in

By Joel Orellana

LACKWATER leaned on Mike Cortez and Reil Cervantes to survive Mahindra’s gallant stand and book a historic 108-99 win to reach the quarterfinals for the first time in franchise history in the Philippine Basketball Association (PBA) Philippine Cup on Sunday at the Mall of Asia Arena.

Cortez hit a conference-high 30 points, while Cervantes contributed 24 markers highlighted by six triples to lift the Elite to the win and advance to the first phase of the quarterfinal round, the franchise’s first in its second season in the league.

Bambam Gamalinda added 16 markers, Carlo Lastimosa had 14 points, while rookie Art dela Cruz contributed eight points and 11 rebounds for Blackwater, which finished 0-11 in the same tournament last season.

The team ended its elimination round with a 3-8 mark, while Mahindra dropped to 2-9 and joined Meralco (1-10) at the sideline.

“We’re excited to be in the quarterfinals.

We’re just an expansion team and our goal is to compete every game and try to improve, and hopefully get the better result,” Elite Head Coach Leo Isaac said.

“Tonight, we got the result we wanted and it was good for the franchise after a forgettable first season,” he added.

The Dioceldy Sy-owned franchise did not progress in each of the three conferences in the previous season and the team traded for Cortez (from Meralco) and the former La Salle standout showed his value to the young franchise.

With the last quarterfinal seat on the line, the veteran playmaker reserved his best game

blaCkWaTer’S Carlo lastimosa (left) protects the ball from John Pinto of Mahindra. ROY DOMINGO

of the conference with a remarkable offensive game and hit a crucial short jumper when the Enforcers threatened to move closer.

Blackwater, behind the hot shooting of Cervantes, erected an 86-66 advantage with 10:33 remaining, but Mahindra slowly cut the lead and LA Revilla’s three-point play off JP Erram put the Enforcers with five, 97-102, with 1:08 left in the game.

Then Cortez hit a clutch jumper in the next play to give the Elite a 104-97 separation.

Revilla countered with a quick lay-up, 99-104, and Mahindra got the chance to get closer after Cortez was whistled for a fivesecond inbound violation.

But Revilla’s triple attempt at the top of the key over Frank Golla rimmed out and Cortez iced the victory with two free throws, 106-99, 35.5 ticks left.

The No. 10-ranked Blackwater will face the third seed Rain or Shine, which owns a twice-to-beat edge in the first phase of the quarters.

Aldrech Ramos led Mahindra with 22 points and 10 rebounds, while Micahel Digregorio hit a career-best 20 markers. Revilla contributed 15 points for the Enforcers.

IGUEL TABUENA capped a brilliant season with a major victory, upending an elite international field with a fiery 66 windup and copping the Philippine Open, presented by International Container Terminal Services Inc., by one over Aussie Scott Barr for his first Asian Tour crown at the Luisita Golf and Country Club course on Sunday in Tarlac.

Three months after dominating the Philippine Golf Tour (PGT) field to win the Central Azucarera de Tarlac Open here with a solid 22-under total, Tabuena went at it again at the par-72 layout, gunning down five birdies in the last nine holes to rally from three strokes down to the top of the heap, then watched erstwhile leader Lindsay Renolds and the rest of the contenders crack trying to chase him back.

“To see my name on this trophy with so many legends is a dream come true,” said the 21-year-old Tabuena, who surged ahead in the second-to-last group with three straight

INCK, TAN TRIUMPH R

UPIA INCK and Bea Tan survived a sluggish first set and turned back the duo of Charo Soriano and Alexa Micek, 17-21, 24-22, 15-12, in a thrilling championship match of the Beach Volleyball Republic (BVR) Christmas Open on Sunday at the Sands by the Bay at the Mall of Asia grounds in Pasay City.

Inck, the Brazilian import of Petron Blaze Spikers in Philippine Superliga (PSL), provided the clutch blows in the neck-and-neck second set to force a decider.

“It just feels so good. This is crazy, this is my first-ever beach volleyball tournament. I always play for fun and I always dream to be a beach volleyball player,” Inck said.

“It’s an honor to have this invitation and I’ve been playing for them the whole week, it really feels so good,” she added.

Soriano and Micek held the match point three times, but Inck kept on forcing the deuces and brought her team at set point, 23-22, followed by Tan’s attack that forged the do-or-die third set.

Holding a 9-3 spread, the Brazilian spiker suffered cramps that led to a five-minute medical break, but she did not back down and continued to play.

However, Micek and Soriano managed to keep within striking distance, trimming the

deficit to12-14, but Inck sealed the deal with the championship point.

Inck and Tan reached the finals after a rousing 21-11, 21-17 victory over Bracket A’s top seed Shiela Pineda and Janine Marciano, while Micek and Soriano earned the first finals slot after a 23-21, 21-15 victory over April Hingpit and Maica Morada.

Pineda and Marciano brought home the third place of the tournament with a 21-15, 21-8, over Morada and Hingpit in their battle for third.

Pineda and Marciano dominated the Bracket A, sweeping all four teams in the pool before falling to Inck and Tan in the crossover semis.

The tandem of Tan and Inck beat Soriano and Micek, 21-18, 21-18, in their first meeting during the round-robin stage—part of their three straight victories against Arielle Estranero and Vina Alinas in three sets (21-19, 19-21, 15-6) and against Mariel Sinamban and Julie Anne Tiangco (21-9, 21-7).

Judy Caballejo and Camille Abanto halted the streak in thriller three sets, 21-14, 10-21, 9-15. They finished second in Bracket B with a 3-1 win-loss slate after a three-way tie together with Micek and Soriano, and Caballejo and Abanto. Lance Agcaoili

rick Olivares bleachersbrew@gmail.com

Bleachers’ Brew

beating the Clippers, 107-97.

Dwight Howard had 22 points and 14 rebounds for the Rockets, who were still up by 19 points with seven-and-a-half minutes left, when the starters for both teams were benched, with the result inevitable.

New York notched its fourth straight win by beating a weary Chicago, 107-91 Carmelo Anthony scored 27 points and Arron Afflalo added 18 for New York, which got back to a .500 winning percentage at 14-14 after winning just 17 games last season.

Joakim Noah had 21 points for the Bulls in his first start of the season.

Washington’s John Wall had 27 points and 12 assists, and Garrett Temple scored a career-high 21 points to lead the Wizards past Charlotte, 109-101.

Oklahoma City extended its run of wins at home to eight straight by routing the struggling Los Angeles Lakers, 118-78. AP

TABUENA RULES OPEN M

birdies from No. 12, then parred the last two holes to pool a 14-under 202 at the end of the weather-shortened championship.

“I thank God for keeping me calm. I knew it would be tough and I knew people were making a charge. I set a goal to shoot anywhere between 64 and 66. When I had a one under at the turn, I knew I had to go for more birdies, to attack smart,” said Tabuena, who pocketed $54,000 (P2.5 million) for a three-day job.

His first PHL Open victory also served as a fitting ending to a banner campaign in the year about to end that saw him clinch the Order of Merit (OOM) title of the local circuit, where he honed his talent and skills with four victories, including the kick-off leg at Splendido.

He also reclaimed the country’s premier golf championship since absentee Angelo Que won it in 2008. Elmer Salvador and Artemio Murakami also ruled in 2009 and 2010, respectively, but against an all-Filipino field.

With Renolds reeling back early with three bogeys against a bogey in the first six holes and limping with a 73, Barr wrested control with an eagle-spike frontside 33 but fell back two miscues at the back, including a costly wet bogey on the par-3 17th that dropped him two back off Tabuena.

Needing an eagle on the par 4 to force a playoff, Barr settled for a birdie and a 68 for runner-up honors at 203 worth $33,000, in the event sponsored by the MVP Sports Foundation, Smart, PLDT, Metro Pacific, Amon Trading, Central Azucarera de Tarlac and Ayala Land Inc., with San Miguel Corp., Suntrust Properties and Santa Lucia as hole sponsors.

“I couldn’t hole any putts for 14 holes. Once I did, it was game on and I holed my share,” Barr said. “I did what I needed to do but it is a shame to finish one short.”

Himmat Raj of India came out of nowhere to snatch a share of third place, firing the tournament-best 63 for a 204, the same output put in by Thai Chinnarat Phadungsil, who fired

CharO SOrianO (right) blocks the attempt of Maica Morada during their semifinals match of beach Volleyball republic Women’s Open tournament at the Sands by the bay in Mall of asia grounds. ALYSA SALEN

even bother with that. The face of the US game is changing and it’s time to let the younger players earn that chance. If they can give us a new cast and a new direction with Star Wars then so should the American team. As for China...that’s something else.

Aside from the megabucks that will be paid, he will cast a spotlight on the Asian game. It will help improve the level of play in the CBA as Chinese players will learn from Bryant’s legendary work ethic, as well as his style.

For the second straight season, there are over 100 foreign players playing their trade in the NBA. That means over a quarter of the players in the world’s best pro league were born outside the United States (although a few come from the US Commonwealth). There hasn’t been a Chinese player in the NBA since Yi Jianlian returned to the CBA in 2012.

Chinese fans reportedly now root for Jeremy Lin and Emmanuel Mudiay. Lin, of Taiwanese heritage, has had a downhill career after Linsanity took root with the New York Knicks.

Mudiay, the Congo native, played high-school ball in Texas but opted not to go to college but to play in China. After a year with the Guangdong Southern Tigers, Mudiay was drafted seventh

overall by the Denver Nuggets during the first round of the 2015 Draft.

For the longest time, NBA basketball has fed and inspired the world until foreign players began taking their game Stateside. Over the years, many NBA veterans have gone on to play in China, not necessarily to extend their careers but also because they felt more comfortable playing abroad. Aside from Marbury, Steve Francis, Gilbert Arenas, Tracy McGrady, Al Harrington, Metta World Peace, Kenyon Martin, J.R. Smith, Aaron Brooks and Shavlik Randolph, to name a few, have gone over.

But there hasn’t been anyone of Bryant’s pedigree; someone who is a certified star and Hall-of-Famer.

You can look at how Major League Soccer (MLS) has become a huge pro sports league in the United States. While many misguidedly view the MLS as where aging European stars go to collect one last paycheck, the quality of the game has vastly improved. They are the fifth major sports league in North America and they have been playing to packed houses.

CBA and Asian hoops? It can only benefit for the attention and game that Bryant will bring.

10-YR PLAN TO EASE ‘the WORST TRAFFIC ON EARTH’

a 67. Each received $16,950.

Korean Seukhyun Baek also rallied with a 66 to finish tied for fifth at 206 with Englishman Simon Griffiths, who shot a 68, and Korean Jeunghun Wang, Ireland’s Niall Turner and South African Keith Horne, who both had 69s, while Renolds double-bogeyed No. 15 and hobbled with a 73 to drop to a share of 10th at 207.

Other nine-under total scorers were Finland’s Kalle Samooja and Gaganjeet Bhullar of India, who carded identical 71s; Khalin Johsi, also of India, who turned in a 70; Korean Charlie Wi, who fired a 68; and Taiwanese Lu Wei-chih, who struck back with a 67.

Charles Hong, who also won here at Luisita in May, emerged as the next best Filipino finisher at joint 16th at 208 after a 69, while former threetime PGT OOM winner Tony Lascuña saved his best for last and shot a bogey-less 65 to salvage a share of 18th at 209.

While his more experienced rivals succumbed to final-round pressure one after the other, Tabuena showed steely nerves rarely seen in a young player, gunning down back-to-back birdies from No. 4 to negate a missed green bogey on the sixth.

As Renolds fell behind with a 37 start, Barr took over with a 33 with Tabuena, who started the final round two shots off Renolds and one behind Barr, falling three back with a 35. But after birdieing the 10th, Tabuena rattled off three straight birdies from No. 12 then added another on the par-5 16th.

Not only did his sizzling finish stun flightmates Bhullar and Korean Giwhan Kim, but it also unsettled those in the championship flight, with Renolds blowing it all with a double-bogey on No. 15 and Barr failing to survive a roller-coaster finish.

Tabuena holds his Philippine »OpenMiguel trophy after besting a tough international field at luisita.

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Kiefer, Alyssa team up for a cause

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IEFER RAVENA and Alyssa Valdez team up for charity in Fastbr3ak—a volleyball exhibition game for victims of Typhoon Nona on Wednesday at the Filoil Flying V Arena in San Juan. Ravena and Valdez, both two-time University Athletic Association of the Philippines (UAAP) Most Valuable Players in basketball and volleyball, respectively, will be joined by Gretchen Ho, Denden Lazaro, Michele Gumabao and Charo Soriano in the charity match geared to raise funds for those affected by the recent calamity.

Game time is set at 2 p.m., with Ravena and Valdez each leading their own team in a best-of-five affair.

“We want to help them in the spirit of Christmas,” said Ravena, who has also successfully organized charity events for victims of typhoons Sendong and Yolanda in the past.

“We hope they won’t be too devastated by what happened and this is one way of making them happy this Christmas.”

Tickets will be sold at P250 and P500 and will be available starting December 21 in Ally’s All-Day Breakfast Place outlets in Malingap and Holy Spirit Drive, Quezon City.

Former collegiate stars Bang Pineda, Jen Reyes, Ella de Jesus and Sue Roces will be joined by celebrities like Yayo Aguila, Arny Ross, IC Mendoza, Miakka Lim and Casey de Silva in the match. Sportscaster Mozzy Ravena, who played for the national team in the 1980s, will make her much-awaited return to the court, this time suiting up alongside daughter Dani.

Side events will also be conducted, including an iPhone 6 raffle sponsored by Smart and a hula hoop contest between Valdez and an audience member.

First of two parts

he sky was devoid of stars that Friday night, when Roman Pancho felt droplets of rain kissing his nape.

He knew that such a shower of rain would cause a lockdown along Edsa, so he decided to go back inside his office in Makati and wait for a few hours until the traffic jam has subsided.

Pancho arranged chairs to form a makeshift bed, and he started to rest, his mobile phone in hand, he watched

a few clips on the Internet.

Three hours later, at around 9 p.m., the technical-support agent started to pack his things and arranged the chairs back to their places. He booked a taxi to Marikina using a ride-hailing application, and it arrived after half an hour.

“I thought it was a good decision for me to stay in the office for a few more hours —I was hoping that the traffic had already subsided at around 9 in the evening—but I was wrong,” he recounted. “It was nearly the same, we were barely moving along Ayala

Avenue; and Edsa is another story.”

When his taxi began to brave Edsa, Pancho could have sworn that the red lights from the tails of the cars were like a giant Christmas tree. The red sea of tail lights flooded Metro Manila’s main artery, with honking from buses to private vehicles filling the atmosphere.

“Home was two hours away. But no thanks to the heavy traffic, I arrived at around 12 midnight in my house, with about P500 off my wallet,” Pancho lamented.

Continued on A2

Emerging markets to have more say in IMF decisions Kobe in China

THAT column by Marc J. Spears in Yahoo! Sports just set the basketball world on fire. Spears asked Stephon Marbury about his fellow National Basketball Association (NBA) 1996 batch mate (ouch, that sounds like a lifetime ago) playing pro ball if his swan song should be in China. And Marbury, who has found a second lease in his basketball life playing for the Beijing Ducks in the Chinese Basketball Association (CBA), said a mouthful to Spears: “They love him here. It is a little past love. It would be like the biggest thing ever in basketball here. It would be beyond huge. Beyond

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big. I would definitely encourage it. They love basketball here. You can’t control the excitement.”

And you know...why not?

It will be good for the world game. Kobe can still play as he is averaging 16.7 points, 4.3 rebounds and 3.4 assists in 23 games, while logging 30 minutes for the Los Angeles Lakers.

While he isn’t as dominant as before, he can still contribute in a huge capacity.

While it is expected that Bryant will try to seek a slot on the United States National Team for the Rio Olympics, I am not so sure that he should

RTU, UP bag national softball jewels

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IZAL Technological University (RTU) outlasted Polytechnic University of the Philippines (PUP), 3-2, in the finals of the men’s division, while University of the Philippines (UP) beat PUP with the same score to rule the distaff side of the Amateur Softball Association of the Philippines (Asaphil)-Cebuana Lhuillier National Softball Intercollegiate Championships.

Richfield Custodio led RTU by pitching superbly against PUP, striking out six batters to bag the Most Valuable Player (MVP) honor in the men’s division.

Reynaldo Gaban took the most stolen base

award, Arnel Arieta bagged the best slugger award and the most home runs, while Zelbert Enriquez won the best pitcher award.

Irene Lumanas from University of Mindanao Davao was adjudged as the best pitcher and best hitter. National team player Kriska Piad bagged the most runs batted in and best slugger award, while Cochise Diolata bagged the MVP plum.

“This one will come down as one of the best editions ever in the history of the National Softball Intercollegiate Championships,” Asaphil President and Cebuana Lhuillier President and CEO Jean Henri Lhuillier said.

.S. law ma kers approved changes to International Monetary Fund (IMF) governance that will give more of a voice to emerging markets, such as China and India, in exchange for greater congressional oversight of the fund.

The House and Senate on Friday passed a $1.1-trillion spending plan

that includes language implementing the IMF reforms, which have been awaiting congressional ratification since 2010, a delay that spurred global criticism of the US. President Barack Obama, who supported the change, signed the bill on Friday.

Ratification also clears the way for

PESO exchange rates n US 47.3050

the Washington-based fund to begin reviewing another round of changes that could give China and other emerging markets an even bigger voting share. The IMF’s executive board is expected to consider a timetable as early as January for the next review of the institution’s share system.

IMF Managing Director Christine

Lagarde said the changes approved on Friday will “strengthen the IMF in its role of supporting global financial stability.” “The reforms significantly increase the IMF’s core resources, enabling us to respond to crises more effectively, and also improve the IMF’s governance by better reflecting the Continued on A2

n japan 0.3856 n UK 70.4561 n HK 6.10240 n CHINA 7.2960 n singapore 33.34390 n australia 33.6571 n EU 51.1935 n SAUDI arabia 12.6153

Source: BSP (18 December 2015)

BMReports BusinessMirror

A2 Monday, December 21, 2015

news@businessmirror.com.ph

10-yr plan to ease ‘the worst traffic on earth’ Continued from A1

The 29-year-old tech support agent is just one of the millions of Filipinos braving the heavy traffic in Metro Manila daily. People seem to have accepted the fact that congestion has become the new normal in the capital.

“Metro Manila’s traffic probably is one of the worst in the world, considering the metrics presented in various articles, including those based on the crowd-sourced surveys, comments on social media and opinion pieces. There are just so many shared experiences of severe traffic congestion that it cannot be denied,” said Jose Regin F. Regidor, a research fellow at the University of the Philippines-Diliman National Center for Transportation Studies.

Global surveys showed that the Philippines has one of the worst traffic situations in the world.

According to a study conducted by online database Numbeo, the Philippines had a traffic index score of 231.09, making it the 13th country in the globe with the worst traffic conditions.

Traffic Index is a composite index of time consumed in traffic due to job commute, estimation of timeconsumption dissatisfaction, carbon dioxide-consumption estimation in traffic and overall inefficiencies in the traffic system.

Rene S. Santiago, a transport expert, echoed Regidor’s senti-

ments, saying that Metro Manila’s traffic situation is not just one of the worst in the globe, but is the worst in the world.

“This has been predicted a long time ago; but the government did nothing. So now, we are not only one of the worst in terms of traffic situation in world, but we have the worst traffic in the world—as far as surveys are concerned,” he said.

Global positioning system-based navigation application Waze named Metro Manila as the city with the “worst traffic on earth.”

Derived from six key factors— traffic level by frequency and severity of traffic jams; road quality and infrastructure; driver safety based on accidents; road hazards and weather; driver services, like access to gas stations and easy parking; socioeconomic, including access to cars and impact of gas prices; and the level of helpfulness and happiness within the Waze community —Manila scored 0.4 in the traffic index. Waze surveyed 50 million of its users in 32 countries and 167 major cities.

‘Christmas traffic new normal’

The traffic conditions in Metro Manila today are worse than ever, as mall hours were extended to accommodate the Christmas rush. A normal hourlong ride from Ayala Avenue to Cubao, Quezon City, now spans two hours—almost at any given time before midnight.

“Traffic in December is much

worse than the normal; and I think the December traffic will become the new normal in the next few years— a thing that is inevitable,” Santiago said.

He noted that there is no escape in that fate, especially since the government has done very little to mitigate the congestion problem in the capital.

“The problem has been there for more than 20 years now. The current state of the traffic in Metro Manila is an offshoot of the government’s neglect,” Santiago said. “The government does not want to admit that there is traffic problem; and how can they address a problem if they don’t want to recognize it?”

Transportation Secretary Joseph Emilio A. Abaya did not categorically deny or accept that Metro Manila holds the title the city with the worst traffic situation in the world, but considered that there is, indeed, a problem in the capital’s transportation systems.

“I’m not sure if this is true, because I have yet to see or read any scientific survey of traffic worldwide,” he said. “But, I think, traffic is always a complicated problem wherever it is.”

Culprits

The Japan International Cooperation Agency (Jica) estimates that the Philippines loses P2.4 billion per day in traffic costs in Metro Manila alone. According to Regidor, the figure for transport losses

in neighboring cities and provinces amounts to P1 billion daily.

In theory, then, the Philippines loses P1.24 trillion per year on traffic costs alone. By 2030, the country will post P2.19 trillion in loses annually on transport costs.

This is very alarming to the business community in the Philippines, with several chambers voicing out concern on the worsening state of the traffic in Metro Manila.

There are several culprits behind the congestion in Metro Manila, but one thing is for sure: neglect is the top item on the list.

“The worsening traffic congestion is an offshoot of poor planning and Band-Aid solutions. It is a result of lack of vision, coupled with the lack of political will, to enforce rules and discipline at the minimum, and advocate for better policies to improve mobility in the city based on a comprehensive transport and logistics plan,” Makati Business Club Executive Director Peter Angelo B. Perfecto said.

American Chamber of Commerce Senior Advisor John D. Forbes noted that the problem is institutional and political in nature.

“Government priorities for a long time have been baliktad. Since the Ramos administration started the Metro Rail Transit [MRT] Line 3 and several major toll roads, modern, efficient mass transportation has been a priority mostly in name only, for planning, but not for implementation, until the Aquino administra-

tion,” he said.

Forbes added that extensions of the Light Rail Transit Lines 1 and 2, and even the construction of MRT Line 7 were planned, but were not executed. The North Rail—which was supposed to connect Northern Luzon to Metro Manila—was started, but was not completed.

“The same can be said for limited-access highways in the National Capital Region. Too little has been done, and too late. The current administration has done more than any since Ramos, but, obviously, not enough, and failed to maintain the MRT 3,” he said.

Fobes added: “The three Skyway projects and three light-rail lines it has approved could have been finished by now. The Connector Project approved by the National Economic and Development Authority Board for Swiss challenges this week could have been operational by now. There has been no significant reform of the public transportation that most people in Manila use daily.”

European Chamber of Commerce of the Philippines External Vice President Henry J. Schumacher noted that economic growth is another factor to the worsening traffic congestion in Metro Manila, although it is just a part of it.

“The other part is that public transportation is so bad that people have no choice but to use their own transport. Plenty of new cars are sold every month, but old cars

that are no longer road-worthy are not taken off the road; annual car inspection needs to be introduced,” he said. Data from the Chamber of Automotive Manufacturers of the Philippines Inc. showed that in the first 10 months of 2015, there were 234,951 units of vehicles sold, a 22-percent jump from the 192,005 units purchased in the same period the year prior.

“There are many causes of congestion, including increasing privatevehicle ownership, inefficient public transport, and a lack of pedestrian and cycling facilities,” Regidor said.

“As it is, we are already running out of stop-gap or Band-Aid measures to alleviate congestion. It is very difficult to discourage private-vehicle use if we do not have good publictransport options.”

Forbes added: “Traffic always comes w ith strong economic growth. At a modest annual increase of 10 percent, the number of new cars in the Philippines will reach 500,000 by 2020. With millions of new cars on the streets, do you think we can move? No. Manila will become uninhabitable.”

What needs to be done, according to Santiago, is for the government to step up its game in the building of infrastructure. But this, he said, is a game of catch-up. `“We will need at least 10 years to at least lessen the traffic in Metro Manila. It is not an overnight solution,” he said. “We are, indeed, playing catch-up.” To be concluded

Emerging markets to have more say in IMF decisions Tougher year ahead Continued from A1

increasing role of dynamic emerging and developing countries in the global economy,” she said in a statement.

Last resort

The IMF’s executive board approved a plan in 2010 to increase the voting share of emerging economies and double the amount of permanent funding available to the Washington-based fund, which serves as a lender of

TAIL-END OF A COLD FRONT SOUTHERN LUZON

last resort to countries that face capital shortfalls.

Some Republican lawmakers had previously said the shift would give too much influence to countries that don’t share US interests, while others questioned the need for international bailouts.

Emerging-market leaders had warned that the IMF would lose legitimacy if its voting structure didn’t reflect the growing economic clout of countries such as India and

China. The delay may have helped push China to establish the Asian Infrastructure Investment Bank, a development lender similar to the World Bank.

Lawmakers imposed several conditions on their support for the reforms. The Treasury Department must push to repeal the fund’s so-called systemic-exemption policy, according to the budget bill.

The policy allows the board to relax the IMF’s lending

LOW PRESSURE AREA 170 KM EAST NORTHEAST OF ZAMBOANGA VITY NORTHEAST MONSOON NORTHERN AND CENTRAL LUZON (DECEMBER 20, 5:00 AM)

standards when a country’s default has major spillover risks. The board invoked the exemption in approving a bailout for Greece in 2010. Congress must also approve any extension beyond 2022 of US participation in a credit line provided to the IMF during the financial crisis to increase its capital.

Normal limits

In addition, the US representative on the IMF’s board

must report to lawmakers when voting in favor of any loans that exceed the fund’s normal limits.

China, the world’s secondlargest economy, currently ranks sixth in voting shares at the IMF, behind the US, Japan, Germany, France and the UK. Under the 2010 plan, China would jump to third, while India would climb to eighth from 11th, and Brazil would move up four spots to 10th. Bloomberg News

for banana exports Continued from A1

elsewhere, but mostly in Asia’s agriculture economies.

“China is aggressive in developing its own plantations in Indonesia, Myanmar, Cambodia, Sri Lanka and Laos, countries that are not traditional banana exporters,” he said.

These plantations have begun exporting to China and Japan, he said.

Worse, the Philippines’s main competitor in the Asian and Middle East market, Ecuador, has a problem with Russia, one of its top markets, after it banned the importation of Ecuadorian bananas.

“It’s not yet coming, but where else would Ecuador would dump its huge export volume but to Asia,” he said.

He said Ecuador and other South American banana exporters have been able to achieve cheaper production expenses, estimated to be half of what plantation owners were spending in their operations in Mindanao.

“That would enable them to easily ship their bananas in refrigerated vans despite the shipping cost,” he said.

He also disclosed that some PBGEA affluent members have developed plantations outside the Philippines and as far as Ecuador. He declined to name them.

Overall, these developments would aggregate to an oversupply of banana in the traditional markets of Philippine bananas in Asia and the Middle East. “Even China has been exporting bananas that come from us, and relabel them as ‘produced in China,’” Antig said.

“These things are coming ominously, as Pagasa [Philippine Atmospheric, Geophysical and Astronomical Services Administration] has forecast the El Nino dry spell to last until the summer months and in June. But the effect to our production would be felt at least three months later,” he said. “A drought would usually result in smaller-size fruits, almost similar to the small-hands of the banana. And this would not look good to our market, which would be expected to be flooded with better banana size from Ecuador and the other new producers.”

Banana exporters have been having a bad year already, with shipments abroad in the January-to-October period falling 61.1 percent to $389.07 million. In 2014 outward shipments of bananas rose by 18.1 percent to $1.13 billion.

The export trend for the two years has already indicated a sad scenario for Philippine producers. Exports by PBGEA members for the January-to-September period this year was 85,324,491 boxes. The number was already a 5.35-percent drop from the same period last year, equivalent to 4,822,989 boxes.

Last year PBGEA members exported 90,147,480 boxes. Each 13.5-kilogram box would fetch an average of $7.

Antig said owners and managers of the plantations have been regularly meeting in the past weeks. He disclosed that at the worst scenario, “we may resort to the quota system that we did in the 1980s and 1990s.”

During those years, the quota system designated farms to prearranged market destination. For instance, he said, “plantations bigger than 12,000 hectares would be given preference to ship their bananas to the prime market of Japan.”

Smaller production areas would be asked to divert their products to the other markets. “But, I think, we would not reach that stage, yet. All we know that the only way to survive is to become big producer, and be able to compete,” he said.

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Monday, December 21, 2015 A3

CA junks petition to nullify ₧10 cut in taxi fare

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By Joel R. San Juan

HE Court of Appeals (CA) has denied the petition seeking to nullify the P10 provisional reduction in the P40 flag-down rate of all air-conditioned taxi services in the country filed by a party-list group.

In a five-page resolution penned by Associate Justice Normandie Pizarro, the CA’s Thirteenth Division held that the filing of the petition for certiorari and prohibition by 1-United Transport Koalisyon Party-list, through its coordinator Perfecto Itliong, was “premature.”

It noted that the group’s motion for reconsideration is still pending before the Land Transportation Franchising and Regulatory Board (LTFRB), which imposed the reduction in March,

4,871 firms grant performance bonuses to boost productivity

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N an effort to improve productivity, a total of 4,871 firms nationwide granted performance bonuses in 2013, according to the Philippine Statistics Authority (PSA).

In the Productivity Improvement and Gainsharing Practices in Establishments report, the PSA said 90.3 percent of all firms that implemented productivity improvement programs (PIPs) granted performance bonuses.

A performance bonus is a productivity gain-sharing scheme or the sharing of gains between the employees and the company that is also used as a PIP. “Sustained increases in labor incomes can only come about by raising productivity,” Socioeconomic Planning Secretary Arsenio M. Balisacan said.

“In the history of modern nations, no country has ever been able to achieve sustained, rapid growth in per-capita incomes without undergoing a structural transformation. This calls for substantial increases in investments, both in physical and human capital,” he added.

The PSA said PIPs, like gain-sharing schemes, aim to improve productivity through efficient use of resources, competitive pricing and on time production, among others.

Around 5,396, or 26.6 percent, out of 20,299 establishments with PIPs had gainsharing schemes.

Data showed that more than half, or 58.7 percent, of firms nationwide implemented PIPs in 2013. This means out of the total 34,579 establishments employing 20 or more workers in 2013, some 20,299 implemented various PIPs. Across industries, these PIPs were implemented by majority of the establishments in the electricity, gas, steam and air-conditioning supply at 76.5 percent.

Around 72.6 percent of firms in manufacturing had PIPs; as well as 69.8 percent in the accommodation and food service activities; and 66.7 percent in construction.

“It was least implemented in the information and communication industry at 40.2 percent,” the PSA said.

Some 77.3 percent, or 38,712 firms, of the 50,050 PIPs implemented were developed by management.

Other groups who came up with the programs were supervisors/line leaders, 14 percent; production workers/rank and file, 4.4 percent; labor-management committee, 2.3 percent; and productivity consultants, 2 percent. Unions developed the least share at 0.4 percent. Cai U. Ordinario

S. Korea turns over agri info system to PSA

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he Korean Agency of Education, Promotion and Information Service in Food, Agriculture, Forestry and Fisheries (Epis) on Friday turned over a real-time information system on agriculture to the Philippine Statistics Authority (PSA).

PSA Assistant National Statistician Maribeth Pilimpinas said the new Philippine National Agri-Food Information System (Nais) will provide “reliable, relevant, accessible, fast and real-time” statistical information on agriculture, particularly palay and corn stocks, and prices.

“With this system, we will have access to more statistics and information on agriculture and food. This is important for us to know the status of food security in the country,” Pilimpinas said.

Nais is aimed to be the standard model for all agriculture information systems in the Asean region. It is part of the Real-Time Asean Food Security Information System (Afsis) Project and is funded and implemented by the Republic of Korea in six Southeast Asian countries.

“The [Real-Time Afsis] Project was initiated in 2014 in Lao PDR, then this year we established the system in the Philippines and Cambodia. Next year we will continue to Vietnam and Indonesia. And then in 2017, in Myanmar,” Epis Senior Vice President Paul Chang said during an interview.

The Philippines alone was granted $300,000 for the completion of the Nais, according to Chang.

Chang said the first phase of the project involved the development and production of the information system and training PSA personnel nationwide. In the Philippines Epis focused on developing a mobile application using tablets. “Many countries have different environments. For Lao PDR and Cambodia, they were behind so they mostly concentrated on reporting systems. But in the Philippines, you have a more favorable Internet environment, so we focused on mobile applications. It depends on the country’s needs,” he added.

Pilimpinas said the system will initially involve statistics of palay and corn, but added that the PSA will include more crops in the system later. Mary Grace Padin

and has yet to be acted upon.

The CA said the Supreme Court has consistently ruled that a party must first exhaust all available administrative remedies before it is allowed to seek the intervention of the court.

“The petitioners are bound by procedural rules and may not disregard the same. It is not up to the petitioners to preempt the LTFRB’s action on their motions for reconsideration,” the CA said.

“The petitioners should have awaited the denial of their motions for reconsideration before filing the present petition,” the appellate court added.

Concurring with the ruling were Associate Justices Samuel Gaerlan and Ma. Luisa Quijano-Padilla.

In its petition, the group also sought the issuance of a temporary restraining order or a status quo enjoining the implementation of the P10 reduction of the taxi flag-down rate.

The LTFRB earlier said it decided to reduce f lag-down rate after weighing “the rights of public land transport operators vis-à-vis the interest of the public in general, which is of paramount importance.”

The rate reduction was in relation to a petition to slash flag-down rate and a P1 cut in the rate for every succeeding 300 meters filed by Rep. Manuel Iway of Negros Oriental in December.

A4 Monday, December 21, 2015

News

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Metallurgical Engineering Act to benefit mining companies, environment–MGB

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new law professionalizing the practice of metallurgical engineering will boost mining and benefit companies engaged in the extraction and processing of gold, copper and other metallic minerals, the country’s top mining official said.

Mines and Geosciences Bureau (MGB) Director Leo Jasareno also said Republic Act (RA) 10668, or the Metallurgical Engineering Act of 2015, will benefit the environment as a result of the efficient operations in the recovery of metallic minerals.

President Aquino signed into law RA 10688 in October, effectively repealing Presidential Decree (PD) 1536, or the Metallurgical Engineering Law of the Philippines.

According to Jasareno, the law will ensure the efficiency of processing operations of mining companies in terms of recovering metals.

He said all mining companies

engaged in metals extraction and processing has metals processing division or units, except for nickel mines, which are engaged in direct shipping.

“Tehnically, in processing metals, you need a metallurgist. The law, first and foremost, will professionalize the discipline. Now, mining companies can have more competent field of metallurgists,” he said.

The effect in mining engineering, he said, is more competent recovery of metals.

“Instead of metals going to waste, more metals will be recovered,” he added. Without a competent metallurgist, Jasareno said metals

recovery is poor and much of the metals are wasted and sometimes improperly disposed of, such as in small-scale mining operations.

“Part of the discipline is the design of mine wastes for proper disposal. With more competent metallurgists, we can increase metals recovery during processing and reduce mine wastes,” he said.

According to the MGB’s Metallurgical Technology Division, the new law includes provisions that institutionalize the continuing professional education and issuance of certificates of specialization.

It also imposes stiffer fines or penalties for persons who are caught violating the law, which include the practice of metallurgical engineering without a license. Under the new law, violators may be slapped with a fine of between P10,000 and P1 million, up from the previous law’s maximum fine of P5,000.

Also, exemption from the Metallurgical Licensure Examination will now include graduates of a bachelor’s degree in Metallurgical Engineering prior to the enactment of the old law in 1978 and have 15 years of practice in any

AES breaks ground on energy-storage system in Zambales

Solon to local governments: Be wary of child-sex tourism

By Recto Mercene

W

ith webcam child-sex tourism gaining global attention, Sen. Grace Poe urged local government units (LGUs) to keep an eye on areas within their jurisdiction that could be hosting operators of this emerging form of child exploitation.

Poe cited a study by Terre des Hommes Netherlands, which identified five areas in the Philippines where incidences of webcam child- sex tourism had been reported: Angeles City in Pampanga; Taguig City in Metro Manila; and Cordova, Dalaguete and Cebu City in the province of Cebu.

According to the international development organization, “Filipino children seem to have an extraordinary appeal to both casual and hard-core pedophiles wanting to offer financial rewards to children forced to perform sexually in front of the camera.”

“With child exploitation taking on forms that are harder to trace, the involvement of local leaders, family members and even neighbors in reporting suspicious activities in the home is crucial to protecting our children from online pedophiles,” Poe said.

She said the national and local governments must work together to stop webcam child-sex tourism from creeping into other provinces, where poverty may drive parents to exploit their children for money.

According to Terre des Hommes, 40 percent of children in webcam sex tourism have family members who are either involved in cybersex

operations or are aware of the child’s involvement in such activities.

On December 5 the National Bureau of Investigation rescued five minors from a home in Cordova, Cebu, which was being used as a cybersex den by the children’s relatives. The operators were using mobile phones instead of computers in their cybersex transactions.

In June police raided a house in Taguig where girls aged 13 to 17 were being prostituted online by their own parents. A similar raid was conducted in the same city in October, where four girls aged 12 and below were rescued.

“It is very alarming how child exploitation has penetrated the homes of poor Filipino families.

We cannot allow this dehumanizing act against our children to continue. We have to stop it before it becomes an entire industry that preys on more vulnerable young people,” Poe said.

Webcam child-sex tourism is considered a criminal act and a violation of several Philippine laws, including the Expanded Anti-Trafficking in Persons Act, the Cybercrime Prevention Act and the Anti-Child Pornography Law. It is estimated that at any given time of the day, over 750,000 men worldwide are looking for online sex with children in more than 40,000 public chat rooms.

In 2013 the Terre des Hommes introduced a virtual child Sweetie, which aims to track and apprehend pedophiles around the world. The organization said reception was “overwhelming” when Sweetie was introduced as a 10-year-old Filipino girl; it was not so when Sweetie pretended to be of another nationality.

Belmonte: It’s about quality not quantity. . .

By Lenie Lectura

A

ES Philippines broke ground on its battery-based energystorage system at Masinloc in Zambales, which will provide 10 megawatts (MW) of interconnected capacity and enhance the reliability of the Luzon grid.

“AES is pleased to bring this pioneering technology and application to the Philippines.Battery-based energy storage will play a critical role intomorrow’s grid, helping to improve stability, lower total system costs and incorporate higher volumes of renewable-energy projects.

“We look forward to working with key stakeholders to demonstrate the value and capabilities of this technology,” AES Philippines Managing Director Neeraj Bha said.

Once completed by mid-2016, it will be one of the first advanced energy-storage installations in Southeast Asia and among the largest in Asia.

The energy-storage project would strengthen the Luzon grid by providing fast response ancillary services like frequency regulation. This solution is especially valuable to island grids facing challenges in instantaneously matching supply and demand across a smaller pool of resources. Energy storage can perform this function more effectively than traditional grid resources, resulting in cost savings and lower system-wide emissions.

“Our province is proud to be the setting for the development of the first battery-based energy storage in the country. Its development will not only secure quality energy services for the people of Zambales and the rest of Luzon, but also contribute to the continued development of the province,” Zambales Provincial Gov. Hermogenes Ebdane Jr. said.

Bha, Ebdane and AES Asia Strategic Business Unit President Marty Crotty led the groundbreaking ceremony on December 15. Several local government officials and representatives from the Department of Energy, and the National Grid Corp. of the Philippines also participated in the event.

AES is actively developing other energy-storage facilities in the Philippines, including one in Kabankalan, Negros Occidental. According to Bha, the Kabankalan project will improve the Visayas grid’s ability to incorporate the significant volume of solar power coming online in the region in early 2016.

metallurgical engineering field.

Those who have earned their doctorate degree in metallurgy or meta l lurg ica l eng ineer ing are, likewise, exempted from the said examinations.

The scope of metallurgical engineering practice, the composition, powers and duties of the Philippines and the Professional Regulatory Board of Metallurgical Engineers (PRB-MET), as well as the requirements for licensure and registration, however, are basically the same with that in PD 1536.

The Society of Metallurgical Engineers of the PRB-MET of the Professional Regulatory Commission (PRC) will ensure that in the drafting of the Implementing Rules and Regulations of RA 10688, the minimum number of licensed engineers required to operate a metallurgical plant will be taken into consideration.

According to Dr. Agustin M. Fudolig, chairman of the PRB-MET of the PRC, the new law “will exemplify the efficiency and competence of Filipino metallurgical engineers not only in the Philippines, but globally, as well.” Jonathan L. Mayuga

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TREATS FOR KIDS

Assorted toys are on sale at a mall in Parañaque City. Kids and the youngat-heart in the Philippines get all kinds of treats, such as toys, during the holiday season. NONIE REYES

House OKs measure to standardize definitions of housing terminologies

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he House of Representatives has recently approved on second reading a resolution standardizing the definitions of housing terminologies.

House Committee on Housing and Urban Development Chairman and Rep. Alfredo Benitez of Negros Occidental said the lack of standard definitions of terminologies slowed down the government and the private sectors’ housing programs.

“Many housing terminologies have become technical gobbledygook that have sown confusion and slowed down the development of the housing industry in the country,” Benitez said.

The lawmaker added that Joint Resolution 38 provides a standard definition to 379 housing terms.

He said the standard definitions were agreed upon by at least 15 agencies and organizations involved in the ongoing National Housing Summit. According to Benitez, the measure will significantly contribute to faster implementation of housing programs.

“The basic problem not only engenders divergent interpretation of various housing data, which causes, in turn, an inaccurate appreciation of the housing problems and challenges, eventually resulting in ill-informed planning and inappropriate housing interventions,” the lawmaker said.

“This will standardize the respective definitions of housing terms that will serve as a benchmark, for the guidance of the legislator and for adherence by the key shelter agencies,” he added.

Under the resolution, the glossary

is categorized between national and operational terminologies.

National terminologies refer to terms which respective definitions are either supported by national laws or have reached general acceptance.

On the other hand, the operational terminologies category contains terms which respective definitions are generally sourced from administrative issuances.

Operational terminologies may be updated or redefined by relevant government agencies.

Meanwhile, included in the glossary are definitions of critical habitats, habitable room, heritage zone and prudent production cost.

The resolution said critical habitats are areas outside protected areas under Republic Act 7586 (protected areas system in the Philippines) that are known habitats of threatened species.

Habitable room, meanwhile, is defined as any room meeting the requirements of the National Building Code of the Philippines for sleeping, living, cooking or dining purposes.

It also defines heritage zone as a historical, anthropological, archaeological and artistic geographical areas and settings that are culturally significant to the country as declared by the National Museum or the National Historical Commission of the Philippines.

The resolution said a prudent production cost is the relevant cost of the builder of the proposed physical improvements as defined in the Home Guaranty Corporation Act. Jovee Marie N. dela Cruz

crime of financing of terrorism (signed June 18, 2012); 8. RA 10170—An Act Reapportioning The Second Legislative District of Quezon City, Thereby Creating Two Additional Districts and 12 Sangguniang Panlungsod Seats From Such Reapportionment (signed July 2, 2012); 9. RA 10173—Data Privacy Act (signed August 15, 2012); 10. RA 10174—People’s Survival Fund Act (signed August 16, 2012); 11. RA 10175—Cybercrime Prevention Act (signed September 12, 2012); 12. RA 10176—Arbor Day Act (signed September 12, 2012); 13. RA 10349—Establishing the revised AFP modernization program (signed December 11 2012); 14. RA 1035—sin-tax law (signed 20, 2012); 15. RA 10353—defining and penalizing the crime of enforce disappearance (signed December 21, 2012); 16. RA 10354—Responsible Parenthood and Reproductive Health Act (signed December 21, 2012); 17. RA 10361—Kasambahay Act (signed January 18, 2013); 18. RA 10365—An Act Amending For The Purpose of the Anti-Money Laundering Law, As Amended (signed February 15, 2013); 19. RA 10366—Establishing polling places exclusively for persons with disabilities and senior citizens (signed February 15, 2013); 20. RA 10367—Mandatory Biometrics Voter Registration (signed February 15, 2013); 21. RA 10368—Reparation and recognition of victims of humanrights violations during the Marcos regime (signed February 25, 2013); 22. RA 10380—providing for local absentee voting for the media (signed March 14, 2013); 23. RA 10390—PTV Act Amendment (signed March 14, 2013); 24. RA 10395—Strengthening Tripartism (signed March 14, 2013); 25. RA 10396—strengthening conciliation-mediation as a voluntary mode of dispute settlement for all labor cases (signed March 14, 2013); 26. RA 10410—Early Years Act (signed March 26, 2013); 27. RA 10533—K to 12 (signed May 15, 2013); 28. RA 10535—Philippine Standard Time Act (signed May 15, 2013); 29. RA 10557—Filipino Design Policy (signed May 15, 2013); 30. RA 10574—allowing the infusion of foreign equity in the capital or rual banks (signed May 24, 2013); 31. RA 10586—Anti-Drunk Driving Act (signed May 27, 2013); 32. RA 10590—An Act Amending RA 9189, entitled “An Act Providing for

a System of Overseas Absentee Voting

by Qualified Citizens of the Philippines Abroad (signed May 27, 2013); 33. RA 10591—comprehensive law on firearms and ammunition (signed May 29, 2013); 34. RA 10625—reorganizing the Philippine Statistical System (signed September 12, 2013); 35. RA 10627—Anti-Bullying Act (signed September 12, 2013); 36. RA 10630—An Act Strengthening the Juvenile Justice System in the Philippines (signed October 3, 2013); 37. RA 10635—establishing the Maritime Industry Authority as the single maritime administration responsible for the implementation and enforcement of the 1978 international convention on standards of training, certification and watchkeeping for seafarers (signed March 13, 2014); 38. RA 10639— free mobile alerts in the event of natural and man-made disasters and calamities (signed June 20, 2014); 39. RA 10640—further strengthening the antidrug campaign of the government (singed July 15, 2014); 40. RA 1064—allowing the full entry of foreign banks in the Philippines, amending for the purpose RA 7721 (signed July 15, 2014); 41. RA 10642—Lemon Law (signed July 15, 2014); 42. RA 10643— graphic health warnings on tobacco products (signed July 15, 2014); 43. RA 10644—promoting job generation and inclusive growth through the development of micro, small and medium enterprises (signed July 15, 2014); 44. RA 10645—providing for the mandatory PhilHealth coverage for all senior citizens, amending for the purpose RA 7432, as amended by RA 9994, or the “Expanded Senior Citizens Act of 2010” (signed November 5, 2014); 45. RA 10646—creating the Quezon City Development Authority, defining its powers and functions, providing for its organizational structure and capitalization (signed November 8, 2014); 46. RA 10647—ladderized interface between technical-vocational education and training and higher eduction (signed November 21, 2014); 47. RA 10648—Iskolar ng Bayan Act (signed November 27, 2014); 48. RA 10650—open distance leanring in levels of tertirary education (signed December 9, 2014); 49. RA 10653—adjusting the 13thmonth pay and other benefits ceiling excluded from the computation of gross income for purposes of income taxation, amending for the purpose Section 32(b) Chapter VI of the National Internal Revenue Code of 1997, as amended (signed February 12, 2015); 50. RA 10655—repealing the crime

continued from a1

of premature marriage under Article 351 of the Revised Penal Code (signed March 13, 2015); 51. RA 10660—An Act Strengthening Further the Functional and Structural Organization of The Sandiganbayan, Further Amending Presidential Decree 1606, As Amended, And Appropriating Funds Therefore (signed April 16, 2015); 52. RA 10665—Open High School System (signed July 9, 2015); 53. RA 10666—providing for the safety of children aboard motorcycles (signed July 21, 2015); 54. RA 10667—Competition Act (signed July 21, 2015); 55. RA 10668—Cabotage Act Amendments (signed July 21, 2015); 56. RA 10679—promoting entrepreneurship and financial education among Filipino youth (signed August 27, 2015); 57. RA 10687—Unifast Law (signed October 15, 2015); 58. RA 10692—providing for the modernization of the Philippine Atmospheric, Geophysical and Astronomical Services Administration (signed November 3, 2015); 59. RA 10693—strengthening nongovernmental organizations engaged in microfinance operations for the poor (signed November 3, 2015); 60. RA 10697—preventing the proliferation of weapons of mass destruction by managing the trade in strategic goods, the provision of related services, and for other purposes (signed November 13, 2015); 61. RA 10707—amending Presidential Decree 968, or the “Probation Law of 1976,” as amended (signed November 26, 2015); and 62. RA 10708—enhancing transparency in the management and accounting of tax incentives administered by investment promotion agencies (signed December 9, 2015).

Meanwhile, despite the limited session days left for the 16th Congress, Belmonte said he is still hopeful that the priority bills—including the proposed Bangsamoro basic law, the bill strengthening the public-private partnership and the amendments to the economic provisions of the Constitution—would still be passed after the Christmas holidays.

The 16th Congress is set to resume session on January 19, 2016.

Belmonte also said several measures seeking to enhance the country’s competitiveness are ready for bicameral committee deliberations, including the Customs Modernization and Tariffs Act; the Amendments to the BSP Law; the amendments to the Social Security Act of 1996; the creation of the Coco-Levy Trust Fund; the bill creating the Department of Information and Communications Technology; Salary Standardization Law of 2015; and the bill regulating the practice of nutrition and dietetics in the country.

News BusinessMirror

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Govt must lead in investments to create new jobs—Escudero

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HE government should take the lead in beefing up investments in the manufacturing sector, a traditional politician seeking higher office said.

Sen. Francis Escudero said more government-led and made-in-thePhilippines industries will not only benefit the economy but will also address problems, such as joblessness and criminality, which are fueled by poverty and lack of livelihood and employment opportunities.

Citing the Philippine Statistics Authority, Escudero said the number of jobless persons reached 2.37 million in the country in October.

Among the unemployed, 63.4 percent are male. The age group 15 to 24 comprised 48 percent and the bracket 25 to 34 years old 32.1 percent.

Creating a stronger manufacturing sector will also lessen the country’s dependence on imported raw materials, which also increases production costs and prices, according to Escudero.

Not too many invest in the manufacturing sector, although this is what the country needs to create jobs and opportunity to earn livelihood, he said in Filipino. If we look at the situation, almost all of the big investors have invested their capital in the services sector, he added.

Escudero believes the government should step in to fill the gaps that are left by the private sector.

“The government should not think twice about a government-led

industry that can be established in the country,” Escudero said. “Then if later on it decides to privatize the operation and maintenance, it can very well do so. But what’s important at this point is for the government to take the lead.”

Given the huge capital required to set up industries, such as steelmaking, the government could either put up its own plants or develop a credit scheme for businessmen who want to venture in the manufacturing sector, but lack funds to do so, he explained.

Government data showed that the manufacturing sector “comprises more than half of the Philippines’s industrial sector and accounts for almost a quarter of the country’s gross domestic product [GDP].”

Government data also showed the manufacturing sector grew by 10.5 percent in 2013 and 8.1 percent last year, from an annual growth rate of 5.4 percent in 2012.

The sector, however, is a far second to the services sector in terms of contribution to the country’s 6.1percent GDP growth, or P12.63 trillion, in 2014.

On the other hand, the services sector’s gross value-added contribution reached 57 percent last year, making it the “strongest and fast-growing sector of the Philippine economy,” compared to its 36.6-percent contribution in the 1970s. It has also grown by an average of 6.3 percent from 2000 to 2014. Recto Mercene

Monday, December 21, 2015 A5

Finance dept sees more human capital spending for jobs growth

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HE Department of Finance (DOF) has recommended spending more in human capital, such as in the area of education, to create more jobs and follow up on the decrease in the unemployment rate experienced in the country recently.

The unemployment rate as of October is 5.7 percent, down from the 6-percent unemployment rate the previous year and a record low for 35 years.

Finance Undersecretary and c h ief econom i st Gi l B e lt ra n pinned the lower unemployment

rate, for one, to faster job creation in the service and industry sectors, which grew by 2.1 percent and 2.8 percent, respectively.

Beltran also cited as a reason the lower participation rate or the rate of entry into the labor sector, mostly from the young working-

age population because of the calendar shift of the academic year two years ago.

Both the industry and services sectors experienced growth in the employment and job creation rate.

However, jobs growth rate in the agriculture sector continued to contract due to El Niño.

Underemployment rate also went down as of October, registering at only 17.7 percent, from 18.7 percent a year before. The figure is a full one percentage drop due also to the increase in jobs created in the industry and services sectors.

In terms of actual number of Filipinos who found jobs this year, the number of unemployed dropped by 300,000, while the number of underemployed decreased by 412,000.

Beltran said that for the country to be able to follow up on these gains in job generation, the government should invest more in human capital, and make the business climate more conducive for local and foreign investors.

“The government should continue funding investments in human capital for an overall increase in production. Technical-vocational courses increase the employability of the youth,” Beltran said.

“The government should continue to work toward a more conducive business environment to attract more investors. Better macroeconomic fundamentals, infrastructure and streamlined procedures to register businesses go a long way in boosting job growth.”

David Cagahastian

Metro Manila office market sees highest recorded take-up in Q3

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REMIUM and Grade A office space take-up in Metro Manila’s main business districts (CBDs) continued its acceleration during the third quarter, despite high amount of new supply due to strong preleasing activity, according to the most recent report published

by Savills international associate KMC MAG Group.

The amount of new supply delivered this quarter is at 232,961 and take-up reached 231,412 square meters. The latest report also said that it is the highest recorded take-up of all time in the city.

“Most of the new spaces delivered have been preleased prior to completion, that is why take-up is very high,” KMC MAG Man-

aging Director Michael McCullough was quoted in a statement as saying.

Upcoming supply is estimated to reach around 1.8 million sq m in 2018, the statement by KMC MAG said. However, despite the significant amount of supply, KMC MAG said overall office rental and vacancy rates are ex-

pected to remain stable, given the strong preleasing activity.

“We continue to see interest from both local and foreign firms across all CBDs, although most of the interest is currently in BGC, only because it is where most of the new supply will come from,” McCullough said.

VG Cabuag

A6

Monday, December 21, 2015 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Capital controls: Be careful what you wish for

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ack in the days of the administration of President Corazon Aquino, the Philippines instituted strong measures to control the flow of money in and out of the country. There were economic reasons for this policy, as uncertainties of the course of the young presidency created some capital flight. There were legal and political reasons also in an attempt to stop plundered funds from being stashed abroad.

However, manipulating the free flow of money also creates its own problems. Corporations and government agencies were unable to legally source foreign currency for necessary imports. The underground “Binondo Central Bank” did a thriving business.

When currency cannot cross borders freely and above ground, the exchange rate becomes distorted and does not reflect “market rates”. Then there is an official currency-exchange rate and a “black market” rate that more accurately represents the actual money flows. During the time of Philippine capital controls, peso-dollar exchange rates moved as much as 10 percent in one day, far from the official exchange rate given by the central bank.

Over the last few years, there have been numerous calls for the Bangko Sentral ng Pilipinas (BSP) to impose some sort of capital controls. At first, proponents wanted to keep money from coming into the economy from abroad, as there were fears that these funds would create inflation by “overheating” the economy. The BSP said no.

Then as foreign money started to leave the Philippines from the stock market and locally generated corporate profits being repatriated to home countries, outbound capital controls were demanded. The BSP again refused.

Many economists have said capital controls are a government’s way to manage currency flows, if the free market does not adequately trade based on a nation’s economic fundamentals. They are wrong. Forcing money to stay in or out of a country never works. This is a sign of desperation by the government that its economic policies are a failure.

Under the Argentina socialist/Peronist government of Cristina de Kirchner, capital controls were imposed as the economy became a disaster. The Argentina peso was officially exchanged at 9.8 to the US dollar. The black-market rate was 40 percent lower at 14 to $1. The recent election of a new president saw the lifting of capital control last week.

The Argentina peso immediately traded “officially” at the 14:1 rate.

In dollar-denominated terms, the per-capita GDP of Argentina fell from $13,428 to $9,534. Argentinians are now 30-percent poorer compared to the rest of the world.

A government can try to manipulate money value and money flows for only so long, but it can never win.

The BSP continues to use sound and practical policy to protect the Philippine economy from external shocks. When politicians and special interest groups step in, only catastrophe will follow.

PCSO heads for ISO certification Atty. Jose Ferdinand M. Rojas II

RISING SUN

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n behalf of the Philippine Charity Sweepstakes Office (PCSO), I am pleased to announce that last Friday, the PCSO was recommended for ISO 9001:2008 certification by third-party auditor TÜV Rheinland Philippines.

Auditors John Francis Faustorillo (lead auditor), Lei May Maza, Eleanor Tan and Hilario Capili conducted a two-day second-stage audit of gaming-related core and agencysupport processes.

The PCSO hurdled the first-stage audit conducted by Faustorilla and Maza on December 3, and received the greenlight to proceed to secondstage audit on December 17 and 18.

At the closing meeting on December 18, the auditors gave the PCSO four positive findings and 17 opportunities for improvement, understandable considering that this is the first time that the PCSO has implemented ISO standards.

Most significantly, no nonconformities were found in any of the audited processes.

It was an interesting and eventful journey for the agency, whose personnel negotiated a steep learning curve to familiarize themselves with ISO standards and apply them to the core processes of conduct

and management of Lotto draw and prize-claim operations.

The ISO standards were also applied to support processes: accounting and treasury, legal, human resources, assets and supply management, general services, information technology, data security and corporate planning.

Moreover, new processes were developed for document control and customer survey.

Gaming Sector Assistant General Manager Conrado C. Zabella was named the agency’s deputy quality management representative, and in that role guided the PCSO ISO Technical Working Group (TWG), which facilitated and coordinated the process for the entire agency.

The PCSO ISO TWG is headed by Jerusa Corpuz, assisted by group heads Marites Jose (Secretariat), Aimee de Viterbo (Training), Ma. Teresita Carbonel (Internal Audit), Cynthia Jimeno (Workplace), and

Jenny Ortuoste (Documents), with the help of TWG members Joshua Macaraig, May Cerelles, Sheila Marie Moreno and others.

By receiving a recommendation for ISO certification before the end of this year, the PCSO fulfills one of its performance targets set by the Governance Commission for GOCCs (GCG), which gave a weight of 10 percent to this key result area.

The GCG has also set the PCSO a 2016 target to obtain certification for its charity assistance-related core and support processes. This is a challenging target, because to be included in its scope are the processes and procedures for requests for assistance not only at the head office in Metro Manila and the satellite office at the Lung Center of the Philippines, but also at the 50-and-counting branches of the PCSO nationwide.

The move to obtain ISO certification is aligned with the Aquino administration’s priority direction toward the professionalization of the civil service, and the improvement of operations and service delivery in the fulfillment of mandates, duties and responsibilities.

In line with this is the strict implementation of Executive Order 605, series of 2007, which requires “all departments and agencies of the Executive branch, including all government-owned and -controlled corporations and government financial institutions,” to adopt a

De- or recentralizing PPPs

By Alberto C. Agra

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PPP Lead

ocal government units (LGUs) are everywhere. We live in them. People rely on them for services. They regulate activities and businesses. They are duty-bound to respond to the public’s needs and to promote the general welfare. Whatever LGUs do and do not do affect our lives.

They are responsible and must be held accountable for their actions and inactions. They are in a better position and are more competent than the national government in addressing local needs.

Under our system, national development cannot be achieved without the development of LGUs, and vice-versa. There is also no national and local development without private-sector participation and strategic involvement in governance.

One such strategy is public-private partnership (PPP) at the regional, provincial, city, municipal and barangay levels.

LGUs have various roles in PPPs.

They can be the public partners, enablers and implementers of local PPP projects. As the first “P” in PPPs, LGUs are the implementing agencies and parties to the contracts. For projects that they do not implement, they act as regulators and consent providers. In certain cases, they approve or reject projects, or object or issue no objection certificates. LGUs can also tax or grant tax exemptions.

Whatever their specific roles may be, LGUs are stakeholders.

LGUs, like civil-society organizations, are indispensable partners in development. Without their support, projects may not be awarded or even if awarded, the project or

contract cannot be future-proofed.

Long-term PPP projects, in order to be sustainable, must secure the sustained support from stakeholders, host and affected LGUs and communities included.

The multifaceted role of LGUs in PPPs is now being felt everywhere.

LGUs have awarded projects to the private sector for reclamation, land development, water and power supply, government land redevelopment, terminals, hospital and health care, market, socialized housing, education and transport projects, among others. More projects, such as br idges, waste-to -energ y and airports, are in the pipeline.

These projects were chosen and awarded pursuant to local ordinances passed in accordance with the 1991 Local Government Code (LGC). Fifty-one provinces, cities and municipalities have adopted their own PPP ordinances, referring to the template developed by this columnist. There are 10 LGUs that patterned their joint-venture (JV) ordinances from the 2008 guidelines issued by the National Economic and Development Authority (Neda).

In Davao the city council and other stakeholders are formally op-

Quality Management System (QMS) and obtain ISO certification.

Likewise encouraged to do the same are state colleges and universities, local government units, the judiciary, legislature and constitutional offices. nnn

Christmas is just around the corner, and this week many are winding down their office operations, having their holiday parties, and preparing to get away for vacations or trips to their hometowns.

It’s a time to rest and relax in the company of your loved ones.

It’s a time to reflect on what the year has brought you and to give thanks for the blessings received.

It’s also a time to think about sharing those blessings with those less fortunate. In sharing what you have with others, whether it be your resources or simply just your presence and support, you are giving honor and praise to the “reason for the season”. May this be a part of your holiday celebration.

To all the readers of Rising Sun and the BusinessMirror, my thanks for your continued support of my column over the past five years. To you and your families, my warmest wishes for a joy-filled Christmas and God’s most gracious blessings of peace, gratitude and contentment this holiday and always. n n n Atty. Rojas is vice chairman and general manager of the Philippine Charity Sweepstakes Office.

posing the Sasa Port Modernization Project, a national PPP project, due to lack of consultation and exorbitant project costs. In Quezon City the city government is assailing the local taxexemption clause of a lease project of the University of the Philippines.

However, whether as partner, regulator or grantor, LGUs have been criticized. Some view them as roadblocks to development. Others see their powers as overly broad. The criticisms and skepticism stem from lack of trust of local officials’ capacity and integrity, lack of understanding of their mandates, and lack of acceptability of their roles. On the other hand, there are reports of corruption, anomalies and midnight and sweetheart deals by local government.

The perceived overbreadth of powers and distrust may be the reasons there are attempts to recentralize PPPs. This threatens the gains of local autonomy and fiscal autonomy under the current Constitution and sets LGUs back 25 years. It must be recalled that the LGC, which operationalizes local autonomy, was signed into law in 1990.

But rather than commemorating the silver anniversary of this See “PPP,” A7

Opinion BusinessMirror

opinion@businessmirror.com.ph

Nationalizing freight forwarding

Real men Teddy Locsin Jr.

Free fire

Atty. Lorna Patajo-Kapunan

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legally speaking

s we move toward globalization, investment across the borders is now becoming a trend. Foreign investments in the country continue to soar. Many see foreign investment in a country as a positive sign and as a source for future economic growth. It is actually beneficial to our economy that foreigners believe in the Philippines as a lucrative venue to place their money by establishing profitable businesses and, at the same time, serving the general public. One of the many industries that is appealing to foreign investment is the business of freight forwarding, which is also a much-needed service for efficient and effective transportation of goods and commodities.

It may be unknown to many that the operation of freight forwarding in the Philippines is considered under Philippine laws as operation of a public utility. A public utility is defined as a business or service engaged in regularly supplying the public with some commodity or service of public consequence, or essential to the general public. As its name indicates, the term implies public use and service to the public. A public utility under the Constitution and the Public Service Law is one organized “for hire or compensation” to serve the public, which is given the right to demand its service. In one opinion rendered by the Securities and Exchange Commission, air freight forwarding is tantamount to engaging in domestic air commerce and/or transportation.

As an operator of a public utility, the corporation must adhere to the requirements found under Article XII, Section 11 of the Philippine Constitution which provides that the operation of a public utility shall be granted only to citizens of the Philippines or to corporations organized under the laws of the Philippines, at least 60 per centum of whose capital is owned by Filipino citizens.

The participation of foreign investors in the governing body of any public-utility enterprise shall be limited to their proportionate share in its capital, and all the executive and managing officers of such corporation must be citizens of the Philippines. Notably, one of the requisites is that at least 60 percent of the shareholdings of a public-utility corporation must be owned by citizens of the Philippines. Conversely, foreign equity participation in public utility is limited to 40 percent.

Generally, there is the same set of requirements for the incorporation of a domestic corporation, may it be wholly or partially foreignowned. A corporation with more than 40-percent foreign equity shall have to comply with the requirements set forth in the Foreign Investments Act of the Philippines.

In the case of a freight forwarder, which, again, is considered a public utility, what is most important is to comply with the 60/40 ownership requirement as mentioned above.

This equity requirement is further reinforced in Executive Order 184, Series of 2015, which promulgated the most recent foreign-investment negative list.

Considering that a freight forwarder shall operate as a public utility through air-transport services, an endorsement/clearance

PPP. . .

Continued from A6

landmark legislation, there are policies and proposed bills negating or emasculating decentralization.

For instance, additional layers of approval are imposed on LGU-reclamation projects not by law but by administrative order.

A PPP bill pending before Congress, now certified as urgent, seeks to legislate the recentralization. The bill does not expressly list down LGUs as implementing agencies of PPPs. Regulatory boards, which

The participation of foreign investors in the governing body of any public-utility enterprise shall be limited to their proportionate share in its capital, and all the executive and managing officers of such corporation must be citizens of the Philippines.

Notably, one of the requisites is that at least 60 percent of the shareholdings of a publicutility corporation must be owned by Filipinos. from the Civil Aeronautics Board (CAB) is an additional requirement for incorporation. A Letter of Authority shall have to be secured from CAB. It is an approval issued by the CAB authorizing a person or entity to engage in airfreight forwarder, general sales agent, cargo sales agent and off-line carrier.

For freight forwarders that will exclusively operate domestically, the minimum paid-up capital is P250,000, while those that will have international operations, the minimum paid-up capital required is P2,000,000.

It is interesting to note that in one case decided by the Court of Appeals in 2013, involving one of the largest freight forwarding companies in the world, it ruled that such company was a foreign corporation and, therefore, could not conduct business in the Philippines because air freight forwarding was a public utility reserved for Filipinos.

W hile foreign investments help boost our economic growth, our laws significantly protect our citizens by setting limitation for foreigners who want to set foot in the country’s most in-demand industries.

Indeed, doing business in the Philippines by foreigners is not a right granted to them, but a mere privilege regulated by our laws. Such regulation, especially in public utilities, is not merely intended to prioritize Filipinos to engage in business in the country, but most important, to protect the consuming public of the products and services they avail.

The State is bound to protect its citizens, more so, to keep an eye on matters imbued with public interest. Salus populi est suprema lex.

For questions, you may e-mail me at lpkapunan@kapunanlaw.com. may arguably include LGUs, cannot implement PPPs. The bill also includes an automatic exemption of payment of real property taxes depriving LGUs of much-needed resources. LGUs, through the various leagues, are not represented in the national policy-making PPP Board.

And the most disturbing, all PPP and JV ordinances adopted by 61 LGUs will be repealed totally eclipsing innovative- and competitivebased approaches being pursued by LGUs. If this happens, the contracts entered into and vested rights conferred will have doubtful validity.

As discussed in last week’s column,

Part 2

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ORE on Bret and Kate McKay’s take on the Art of Manliness based on the qualities of Atticus Finch, the hero of the story To Kill a Mockingbird.

The most important form of courage is moral courage. There is physical courage and you can pay a hit man or the cops to show it for you. There is intellectual courage and you can also pay your news writers more, so they’ll settle for nothing less than the truth instead of the lie suggested by a big sponsor. But morally courageous, that you gotta do it yourself.

“Moral courage involves the strength to stick with your convictions and do the right thing,” Bret and Kate McKay say. Now your convictions can be right or wrong.

A lotta wrong convictions are passionately held. That’s okay. We are all free to be wrong. But ain’t none of us free to do wrong. If you wanna think stupid, go ahead and think it,

just don’t say or act on it which could hurt people, something Trump’s been doin’ a lot of.

But when do you know that your convictions are right and not wrong?

It is not because only a few, if any, agree with you—or that most, if not all, do. You might be crazy and say crazy things; which is rather popular in this campaign season here and even more in the United States. But one sure test of right convictions is when you are persecuted for them— by a few powerful or by a lotta weak people like the general public.

Atticus’s decision to defend a black man in a white town dead set on settin’ a black example invited insults and threats against him, the last one was carried out and almost

Monday, December 21, 2015

killed his children. A shy and retarded man stepped out of hiding in time to save them. The author, Harper Lee, picked a retard for that saving role to underscore that it does not take a genius to tell right from wrong and act on the distinction.

“Moral courage is shown by taking on a fight that you know you’ll lose just because you believe the cause to be honorable,” say Bret and Kate McKay. Not, not just the right but an honorable cause. Some right causes are not worth the trouble of fighting for them. On the other hand, some things are worth fighting for in a battle sure to be lost just because it’s the honorable thing to do, like declaring for a candidate with scant chance of winning because she or he is the best all told, and he’s a friend.

It is better to lose with a friend than win with the leading asshole.

I made that decision once already and will again. I told Cory that I would rather lose with Mitra who went to jail with my father and her husband, than win with FVR who jailed them. And, of course, I lost.

All the surveys indicated that well before the day of elections. This too was known to Lucio Tan, who yet never withdrew his support for a sure losing candidate. That’s honor-

A7

able where it hurts most, the wallet.

Atticus made his son read to an old woman who was all but deaf because she was in so much pain. The old woman was a morphine addict.

But, all alone as she was, she still decided to free herself from her addiction by going cold turkey even if it was painful and even if she was dyin’ anyways. She just had to die free. Even if no one else would know that but she. She was what counted most to her.

Hearing a voice beside her distracted from the pain, said Atticus to his son, “and I wanted you to see that real courage is, instead of getting the idea that courage is a man with a gun in his hand.

“Real courage is when you know you’re licked before you begin, but you begin anyway, and you see it through no matter what. You rarely win but sometimes you do. Mrs. Dubose won,” Atticus said, “all 98 pounds of her.

She died beholden to nothing and nobody. She was the bravest person I ever knew.”

I think that if Mar loses this election, he will be beholden to nothin’ and nobody. Or wins it for that matter.

Moral courage—your best gift to yourself in this campaign and on the day of election. Merry Christmas.

Auditors must not prepare financial statements Filbert Tsai

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DEBIT CREDIT

ccounts preparation have long been passed as a task to auditors and there is a growing concern whether they are allowed to provide such services to the audit client. This practice sounds alarming to the general public as there is an expectation of independence attached to the audit practice. The auditor should be independent by mind and by appearance, for which the preparation of the financial statements might seem counterintuitive.

The independence guidelines for the audit practice is provided by the International Ethics Standards Board for Accountants (IESBA or the “Board”) through the Handbook of the Code of Ethics for Professional Accountants (the “Handbook”). Part B is specifically dedicated to the public practice of accounting (or audit) which outlines, most important, the threats and the safeguards related to the audit practice and non-audit services (e.g., preparation of financial statements or accounts) provided to the clients.

The Handbook provides the five general categories of threats that might arise as a result of the business relationship between auditors (or firms) and their clients: (1) selfinterest; (2) self-review; (3) advocacy; (4) familiarity; and (5) intimidation.

The preparation of financial statements on behalf of the client is most strongly linked with the self-review threat since the auditors’ responsibility includes the review of the financial statements as part of its audit procedures.

Intuitively, this issue is not something new to the practice and is explicitly addressed by the Handbook.

Section 290.164 to 171 provides a great deal of information on the issue of preparing financial statements.

Section 290.168 of the Handbook explicitly states that: “The firm may provide services

this is the chilling effect of successor risk. This anti-LGU and antilocal autonomy stance must be exposed and opposed.

The advances made by decentralization and the bottom-up approach to development and planning in-

related to the preparation of accounting records and financial statements to an audit client that is not a public interest entity where the services are of a routine or mechanical nature, so long as any self-review threat created is reduced to an acceptable level.”

To be responsible, I have highlighted the fact that the Handbook explicitly states that the preparation of accounts for an audit client is acceptable as long as it is not a public-interest entity (PIE) and that self-review threat is reduced to an acceptable level. Forgive me for being repetitive, but it is better to be clear. PIEs are clearly expected to maintain highly qualified internal accountants, which are fully capable of preparing financial statements on their own—though, Section 290.170 still provides some exceptional circumstances wherein the auditor is allowed to prepare financial statements on behalf of the PIE client (which I will not be discussing as I deem it irrelevant).

For reference of the general reader, a PIE is defined as an entity that is listed and either defined by regulation or legislation as a PIE or which the audit is required by regulation or legislation to be conducted in compliance with the same independence requirements that apply to the audit of listed entities. There is no clear definition by the Securities and Exchange Commission of what is a PIE in the Philippines—thus, there is a

stalled by the LGC must be protected.

The “Liberal View of Local Autonomy” must be enabled.

PPP Learn No. 4 The breadth of local autonomy

Local autonomy means a more

rebuttable presumption that only listed entities and quasi-private corporations are considered PIE. In order to be clear with the Board’s expectation of how a firm manages its self-review threat, the Board provided an illustrative guidance in Section 290.168 as to what it deems as appropriate safeguard: n Arranging for such services to be performed by an individual who is not a member of the audit team; or n If such services are performed by a member of the audit team, using a partner or senior staff member with appropriate expertise who is not a member of the audit team to review the work performed.

Interestingly, the safeguard raised in the Handbook provides a very clear message—the audit firm can provide financial-statement preparation service to the client provided that either the preparer or the reviewer of the financial-statement should be outside the audit engagement. This is something that the audit practice in the Philippines and in developing countries in general should consider changing. This is where audit firms outside the Philippines find the revenue growth potential. This is a revenue growth opportunity, as well.

In most of the developed countries, there is a speciality service within big auditing firms that provide accounting compliance services to audit and nonaudit clients. Accounting compliance is just a pretty term for financial-statement preparation and other admin stuffs that audit firms can provide side-by-side with its audit practice without breaching the independence requirement under the Handbook. Indeed, as can be seen in most big firms, this is a growing practice where financial statements are drafted by a separate team, usually outsourced (of course to a cheaper location), and subsequently adopted by management as their own prior to the audit kick-off.

Currently, the Board of Accountancy is proposing a requirement to attach a Certificate of Financial Statement Preparation (“Certificate”) for

entities with gross revenues (sales) exceeding P10 million. Further, the Certificate should be signed by a Certified Public Accountant (CPA) in the “commerce and industry” practice (i.e., management accountant or CPA firm providing bookkeeping services).

This is a great timing for a big change. In growing the business sector of the country in introduction of foreign direct investments, greater scrutiny should be in place that audit firms are delivering assurance to the business community as a whole. This should also serve as a stern warning to the private sector on relying on their auditors to provide free accounts preparation service, which actually tends to be a tedious process to ensure compliance with the disclosure requirements under International Financial Reporting Standards (IFRS), or IFRS for Small and Medium Enterprises.

Last, the growth opportunity is here for the audit practice to set up a separate service line to encapsulate the requirement to prepare financial statements through a fee-generating service rather than being embedded in the audit fee. This is an opportunity as well to divert the whole profession toward a more skills-based qualification for the CPA exam, which should require at least a few years of professional experience in commerce or industry prior to qualifying as a CPA. This would allow (force, stronger) the whole industry (except for academe which I expect to require a more stringent requirement) to accept nonCPAs to workplaces providing quality professional service despite lack of qualification.

responsive and accountable local government structure instituted through a system of decentralization. Like any other power and right, local autonomy is not absolute.

While not absolute, local autonomy is broad and guaranteed under the 1987 Philippine Constitution.

There are two views of local autonomy defining breadth. These are the Centrist and Liberal views.

Under the Centrist View, LGUs can exercise only those powers expressly given to them; and necessarily implied from the express powers.

Under the Liberal View, LGUs can exercise the above-mentioned

powers and those powers not delegated to by the national government or any governmental agency or instrumentality by law; and not prohibited or forbidden by the Constitution and statutes, provided the powers are necessary for the carrying out of the mandates and duties entrusted to LGUs, with the end in view of promoting the general welfare in response to local concerns and as agents of the communities.

Which do you subscribe to—the “cut-and-paste” view or the empowerment view? This columnist has made known his.

Filbert Tsai is a Filipino financial accounting advisory services executive in the UK with specialization in transaction accounting in the power and utilities sector. He had provided accounting advice to a significant number of government and financial institutions investing or providing financing structures in the renewables sector in Europe and in developing countries.

Sports BusinessMirror

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onday, December 21, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

Gasol leads Grizzlies to victory

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Elite down Enforcers for first quarters stint

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EMPHIS, Tennessee—Memphis’s Marc Gasol had 19 points and 12 rebounds to guide the Grizzlies to a 96-84 win over Indiana on Saturday, preventing the Pacers from closing in on the National Basketball Association (NBA) Central Division lead.

The Pacers dropped two games behind pacesetter Cleveland, but retained second place in the division because Chicago also lost, beaten convincingly at New York.

Also on Saturday Houston built a huge early lead and coasted to victory against the disappointing Los Angeles Clippers.

Memphis’s Matt Barnes finished with 15 points and 10 rebounds for the Grizzlies, who moved within a game of Dallas for second place in the Southwest Division.

Paul George led the Pacers with 29 points, despite going eight-of-22 from the field.

Houston bounced out to a 26-point lead in the first half and was untroubled in

By Joel Orellana

LACKWATER leaned on Mike Cortez and Reil Cervantes to survive Mahindra’s gallant stand and book a historic 108-99 win to reach the quarterfinals for the first time in franchise history in the Philippine Basketball Association (PBA) Philippine Cup on Sunday at the Mall of Asia Arena.

Cortez hit a conference-high 30 points, while Cervantes contributed 24 markers highlighted by six triples to lift the Elite to the win and advance to the first phase of the quarterfinal round, the franchise’s first in its second season in the league.

Bambam Gamalinda added 16 markers, Carlo Lastimosa had 14 points, while rookie Art dela Cruz contributed eight points and 11 rebounds for Blackwater, which finished 0-11 in the same tournament last season.

The team ended its elimination round with a 3-8 mark, while Mahindra dropped to 2-9 and joined Meralco (1-10) at the sideline.

“We’re excited to be in the quarterfinals.

We’re just an expansion team and our goal is to compete every game and try to improve, and hopefully get the better result,” Elite Head Coach Leo Isaac said.

“Tonight, we got the result we wanted and it was good for the franchise after a forgettable first season,” he added.

The Dioceldy Sy-owned franchise did not progress in each of the three conferences in the previous season and the team traded for Cortez (from Meralco) and the former La Salle standout showed his value to the young franchise.

With the last quarterfinal seat on the line, the veteran playmaker reserved his best game

Blackwater’s Carlo Lastimosa (left) protects the ball from John Pinto of Mahindra. ROY DOMINGO

of the conference with a remarkable offensive game and hit a crucial short jumper when the Enforcers threatened to move closer.

Blackwater, behind the hot shooting of Cervantes, erected an 86-66 advantage with 10:33 remaining, but Mahindra slowly cut the lead and LA Revilla’s three-point play off JP Erram put the Enforcers with five, 97-102, with 1:08 left in the game.

Then Cortez hit a clutch jumper in the next play to give the Elite a 104-97 separation.

Revilla countered with a quick lay-up, 99-104, and Mahindra got the chance to get closer after Cortez was whistled for a fivesecond inbound violation.

But Revilla’s triple attempt at the top of the key over Frank Golla rimmed out and Cortez iced the victory with two free throws, 106-99, 35.5 ticks left.

The No. 10-ranked Blackwater will face the third seed Rain or Shine, which owns a twice-to-beat edge in the first phase of the quarters.

Aldrech Ramos led Mahindra with 22 points and 10 rebounds, while Micahel Digregorio hit a career-best 20 markers. Revilla contributed 15 points for the Enforcers.

TABUENA RULES OPEN M

IGUEL Tabuena capped a brilliant season with a major victory, upending an elite international field with a fiery 66 windup and copping the Philippine Open, presented by International Container Terminal Services Inc., by one over Aussie Scott Barr for his first Asian Tour crown at the Luisita Golf and Country Club course on Sunday in Tarlac.

Three months after dominating the Philippine Golf Tour (PGT) field to win the Central Azucarera de Tarlac Open here with a solid 22-under total, Tabuena went at it again at the par-72 layout, gunning down five birdies in the last nine holes to rally from three strokes down to the top of the heap, then watched erstwhile leader Lindsay Renolds and the rest of the contenders crack trying to chase him back.

“To see my name on this trophy with so many legends is a dream come true,” said the 21-year-old Tabuena, who surged ahead in the second-to-last group with three straight

INCK, TAN TRIUMPH R

UPIA Inck and Bea Tan survived a sluggish first set and turned back the duo of Charo Soriano and Alexa Micek, 17-21, 24-22, 15-12, in a thrilling championship match of the Beach Volleyball Republic (BVR) Christmas Open on Sunday at the Sands by the Bay at the Mall of Asia grounds in Pasay City.

Inck, the Brazilian import of Petron Blaze Spikers in Philippine Superliga (PSL), provided the clutch blows in the neck-and-neck second set to force a decider.

“It just feels so good. This is crazy, this is my first-ever beach volleyball tournament. I always play for fun and I always dream to be a beach volleyball player,” Inck said.

“It’s an honor to have this invitation and I’ve been playing for them the whole week, it really feels so good,” she added.

Soriano and Micek held the match point three times, but Inck kept on forcing the deuces and brought her team at set point, 23-22, followed by Tan’s attack that forged the do-or-die third set.

Holding a 9-3 spread, the Brazilian spiker suffered cramps that led to a five-minute medical break, but she did not back down and continued to play.

However, Micek and Soriano managed to keep within striking distance, trimming the

deficit to12-14, but Inck sealed the deal with the championship point.

Inck and Tan reached the finals after a rousing 21-11, 21-17 victory over Bracket A’s top seed Shiela Pineda and Janine Marciano, while Micek and Soriano earned the first finals slot after a 23-21, 21-15 victory over April Hingpit and Maica Morada.

Pineda and Marciano brought home the third place of the tournament with a 21-15, 21-8, over Morada and Hingpit in their battle for third.

Pineda and Marciano dominated the Bracket A, sweeping all four teams in the pool before falling to Inck and Tan in the crossover semis.

The tandem of Tan and Inck beat Soriano and Micek, 21-18, 21-18, in their first meeting during the round-robin stage—part of their three straight victories against Arielle Estranero and Vina Alinas in three sets (21-19, 19-21, 15-6) and against Mariel Sinamban and Julie Anne Tiangco (21-9, 21-7).

Judy Caballejo and Camille Abanto halted the streak in thriller three sets, 21-14, 10-21, 9-15. They finished second in Bracket B with a 3-1 win-loss slate after a three-way tie together with Micek and Soriano, and Caballejo and Abanto. Lance Agcaoili

Rick Olivares bleachersbrew@gmail.com

Bleachers’ Brew

Kobe in China THAT column by Marc J. Spears in Yahoo! Sports just set the basketball world on fire. Spears asked Stephon Marbury about his fellow National Basketball Association (NBA) 1996 batch mate (ouch, that sounds like a lifetime ago) playing pro ball if his swan song should be in China. And Marbury, who has found a second lease in his basketball life playing for the Beijing Ducks in the Chinese Basketball Association (CBA), said a mouthful to Spears: “They love him here. It is a little past love. It would be like the biggest thing ever in basketball here. It would be beyond huge. Beyond

big. I would definitely encourage it. They love basketball here. You can’t control the excitement.”

And you know...why not?

It will be good for the world game. Kobe can still play as he is averaging 16.7 points, 4.3 rebounds and 3.4 assists in 23 games, while logging 30 minutes for the Los Angeles Lakers.

While he isn’t as dominant as before, he can still contribute in a huge capacity.

While it is expected that Bryant will try to seek a slot on the United States National Team for the Rio Olympics, I am not so sure that he should

beating the Clippers, 107-97.

Dwight Howard had 22 points and 14 rebounds for the Rockets, who were still up by 19 points with seven-and-a-half minutes left, when the starters for both teams were benched, with the result inevitable.

New York notched its fourth straight win by beating a weary Chicago, 107-91 Carmelo Anthony scored 27 points and Arron Afflalo added 18 for New York, which got back to a .500 winning percentage at 14-14 after winning just 17 games last season.

Joakim Noah had 21 points for the Bulls in his first start of the season.

Washington’s John Wall had 27 points and 12 assists, and Garrett Temple scored a career-high 21 points to lead the Wizards past Charlotte, 109-101.

Oklahoma City extended its run of wins at home to eight straight by routing the struggling Los Angeles Lakers, 118-78. AP

birdies from No. 12, then parred the last two holes to pool a 14-under 202 at the end of the weather-shortened championship.

“I thank God for keeping me calm. I knew it would be tough and I knew people were making a charge. I set a goal to shoot anywhere between 64 and 66. When I had a one under at the turn, I knew I had to go for more birdies, to attack smart,” said Tabuena, who pocketed $54,000 (P2.5 million) for a three-day job.

His first PHL Open victory also served as a fitting ending to a banner campaign in the year about to end that saw him clinch the Order of Merit (OOM) title of the local circuit, where he honed his talent and skills with four victories, including the kick-off leg at Splendido.

He also reclaimed the country’s premier golf championship since absentee Angelo Que won it in 2008. Elmer Salvador and Artemio Murakami also ruled in 2009 and 2010, respectively, but against an all-Filipino field.

With Renolds reeling back early with three bogeys against a bogey in the first six holes and limping with a 73, Barr wrested control with an eagle-spike frontside 33 but fell back two miscues at the back, including a costly wet bogey on the par-3 17th that dropped him two back off Tabuena.

Needing an eagle on the par 4 to force a playoff, Barr settled for a birdie and a 68 for runner-up honors at 203 worth $33,000, in the event sponsored by the MVP Sports Foundation, Smart, PLDT, Metro Pacific, Amon Trading, Central Azucarera de Tarlac and Ayala Land Inc., with San Miguel Corp., Suntrust Properties and Santa Lucia as hole sponsors.

“I couldn’t hole any putts for 14 holes. Once I did, it was game on and I holed my share,” Barr said. “I did what I needed to do but it is a shame to finish one short.”

Himmat Raj of India came out of nowhere to snatch a share of third place, firing the tournament-best 63 for a 204, the same output put in by Thai Chinnarat Phadungsil, who fired

Charo Soriano (right) blocks the attempt of Maica Morada during their semifinals match of Beach Volleyball Republic Women’s Open tournament at the Sands by the Bay in Mall of Asia grounds. ALYSA SALEN

even bother with that. The face of the US game is changing and it’s time to let the younger players earn that chance. If they can give us a new cast and a new direction with Star Wars then so should the American team. As for China...that’s something else.

Aside from the megabucks that will be paid, he will cast a spotlight on the Asian game. It will help improve the level of play in the CBA as Chinese players will learn from Bryant’s legendary work ethic, as well as his style.

For the second straight season, there are over 100 foreign players playing their trade in the NBA. That means over a quarter of the players in the world’s best pro league were born outside the United States (although a few come from the US Commonwealth). There hasn’t been a Chinese player in the NBA since Yi Jianlian returned to the CBA in 2012.

Chinese fans reportedly now root for Jeremy Lin and Emmanuel Mudiay. Lin, of Taiwanese heritage, has had a downhill career after Linsanity took root with the New York Knicks.

Mudiay, the Congo native, played high-school ball in Texas but opted not to go to college but to play in China. After a year with the Guangdong Southern Tigers, Mudiay was drafted seventh

overall by the Denver Nuggets during the first round of the 2015 Draft.

For the longest time, NBA basketball has fed and inspired the world until foreign players began taking their game Stateside. Over the years, many NBA veterans have gone on to play in China, not necessarily to extend their careers but also because they felt more comfortable playing abroad. Aside from Marbury, Steve Francis, Gilbert Arenas, Tracy McGrady, Al Harrington, Metta World Peace, Kenyon Martin, J.R. Smith, Aaron Brooks and Shavlik Randolph, to name a few, have gone over.

But there hasn’t been anyone of Bryant’s pedigree; someone who is a certified star and Hall-of-Famer.

You can look at how Major League Soccer (MLS) has become a huge pro sports league in the United States. While many misguidedly view the MLS as where aging European stars go to collect one last paycheck, the quality of the game has vastly improved. They are the fifth major sports league in North America and they have been playing to packed houses.

CBA and Asian hoops? It can only benefit for the attention and game that Bryant will bring.

a 67. Each received $16,950.

Korean Seukhyun Baek also rallied with a 66 to finish tied for fifth at 206 with Englishman Simon Griffiths, who shot a 68, and Korean Jeunghun Wang, Ireland’s Niall Turner and South African Keith Horne, who both had 69s, while Renolds double-bogeyed No. 15 and hobbled with a 73 to drop to a share of 10th at 207.

Other nine-under total scorers were Finland’s Kalle Samooja and Gaganjeet Bhullar of India, who carded identical 71s; Khalin Johsi, also of India, who turned in a 70; Korean Charlie Wi, who fired a 68; and Taiwanese Lu Wei-chih, who struck back with a 67.

Charles Hong, who also won here at Luisita in May, emerged as the next best Filipino finisher at joint 16th at 208 after a 69, while former threetime PGT OOM winner Tony Lascuña saved his best for last and shot a bogey-less 65 to salvage a share of 18th at 209.

While his more experienced rivals succumbed to final-round pressure one after the other, Tabuena showed steely nerves rarely seen in a young player, gunning down back-to-back birdies from No. 4 to negate a missed green bogey on the sixth.

As Renolds fell behind with a 37 start, Barr took over with a 33 with Tabuena, who started the final round two shots off Renolds and one behind Barr, falling three back with a 35. But after birdieing the 10th, Tabuena rattled off three straight birdies from No. 12 then added another on the par-5 16th.

Not only did his sizzling finish stun flightmates Bhullar and Korean Giwhan Kim, but it also unsettled those in the championship flight, with Renolds blowing it all with a double-bogey on No. 15 and Barr failing to survive a roller-coaster finish.

Tabuena holds his Philippine »OpenMiguel trophy after besting a tough international field at Luisita.

Kiefer, Alyssa team up for a cause

K

IEFER Ravena and Alyssa Valdez team up for charity in Fastbr3ak—a volleyball exhibition game for victims of Typhoon Nona on Wednesday at the Filoil Flying V Arena in San Juan. Ravena and Valdez, both two-time University Athletic Association of the Philippines (UAAP) Most Valuable Players in basketball and volleyball, respectively, will be joined by Gretchen Ho, Denden Lazaro, Michele Gumabao and Charo Soriano in the charity match geared to raise funds for those affected by the recent calamity.

Game time is set at 2 p.m., with Ravena and Valdez each leading their own team in a best-of-five affair.

“We want to help them in the spirit of Christmas,” said Ravena, who has also successfully organized charity events for victims of typhoons Sendong and Yolanda in the past.

“We hope they won’t be too devastated by what happened and this is one way of making them happy this Christmas.”

Tickets will be sold at P250 and P500 and will be available starting December 21 in Ally’s All-Day Breakfast Place outlets in Malingap and Holy Spirit Drive, Quezon City.

Former collegiate stars Bang Pineda, Jen Reyes, Ella de Jesus and Sue Roces will be joined by celebrities like Yayo Aguila, Arny Ross, IC Mendoza, Miakka Lim and Casey de Silva in the match. Sportscaster Mozzy Ravena, who played for the national team in the 1980s, will make her much-awaited return to the court, this time suiting up alongside daughter Dani.

Side events will also be conducted, including an iPhone 6 raffle sponsored by Smart and a hula hoop contest between Valdez and an audience member.

RTU, UP bag national softball jewels

R

IZAL Technological University (RTU) outlasted Polytechnic University of the Philippines (PUP), 3-2, in the finals of the men’s division, while University of the Philippines (UP) beat PUP with the same score to rule the distaff side of the Amateur Softball Association of the Philippines (Asaphil)-Cebuana Lhuillier National Softball Intercollegiate Championships.

Richfield Custodio led RTU by pitching superbly against PUP, striking out six batters to bag the Most Valuable Player (MVP) honor in the men’s division.

Reynaldo Gaban took the most stolen base

award, Arnel Arieta bagged the best slugger award and the most home runs, while Zelbert Enriquez won the best pitcher award.

Irene Lumanas from University of Mindanao Davao was adjudged as the best pitcher and best hitter. National team player Kriska Piad bagged the most runs batted in and best slugger award, while Cochise Diolata bagged the MVP plum.

“This one will come down as one of the best editions ever in the history of the National Softball Intercollegiate Championships,” Asaphil President and Cebuana Lhuillier President and CEO Jean Henri Lhuillier said.