Businessmirror 10 18 2014 by BusinessMirror

Timeline of patients

More than 300 new viral mutations identified in latest strain

Thomas Eric Duncan

Oct. 8: Duncan dies.

Sept. 28: Duncan returns to Presbyterian by ambulance and is isolated.

Sept. 24: Duncan begins running a fever.

Oct. 19: The last day on which those who came in contact with Duncan before his isolation must be monitored.

Researchers rushing study on Ebola’s increase in virulence

Oct. 31: The last day on which those who came in contact with Pham before her isolation will be monitored.

Nina Pham Sept. 30: Tests confirm Duncan has Ebola.

Sept. 25: He arrives at Presbyterian Hospital of Dallas with the fever and other symptoms. He is sent home early the next morning.

Oct. 10: Pham, a nurse who cared for Duncan at Presbyterian, discovers she has a fever. She arrives at the hospital and is isolated.

Oct. 12: State officials announce Pham’s illness. It’s thought to be the first case of Ebola transmission in the U.S.

Nov. 4: The last day on which those who came in contact with Vinson before her isolation will be monitored.

Oct. 8: A second Presbyterian nurse who helped care for Duncan, Amber Vinson, travels to Ohio, her native state.

September

Oct. 13: Vinson returns to Dallas on a commercial flight.

Oct. 14: Vinson reports to the hospital with a fever. She is isolated. Officials say she had close contact with three people, who will be monitored.

October

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JAPAN PM SENDS OFFERINGS TO WAR SHRINE

US lawmakers criticize Dallas medics for poor handling of Ebola crisis

ASHINGTON—MembersofaUSHousesubcommittee sharply criticized national and Dallas medicalofficialsonThursdayforerrorsintheEbolacrisis that they say have eroded public trust in the hospital system.

PRO-DEMOCRACY students remove their belongings as riot police clear their encampment in the Mong Kok district of Hong Kong, early on Friday. Riot police took down barnicades, tents and canopies. AP/WALLY SANTANA

Vatican alters draft report translation about gays V

translation was hasty and error-ridden. When Lombardi was shown how significantly the meaning had changed, he pledged to investigate and didn’t rule out a third version. Lombardi stressed that the original Italian remains the official text, and noted that the draft is being revised top-tobottom for a final report, which will go to a vote among bishops on Saturday. If two-thirds approve it, the report will form the basis of discussions in dioceses around the world before another meeting of bishops next year, and ultimately a teaching document by Pope Francis. Based on the complaints to the original text and the number of amendments proposed Thursday, the drafting committee appointed by the pope has its work cut out for it if it wants to get a two-thirds majority. AP

the English was changed. The first English version asked if the church was capable of “welcoming these people, guaranteeing to them a fraternal space in our communities.” The new version asks if the church is “capable of providing for these people, guaranteeing...them...a place of fellowship in our communities.” The first version said homosexual unions could often constitute a “precious support in the life of the partners.” The new one says gay unions often constitute “valuable support in the life of these persons.” Other changes were made in other sections of the text, but without significantly altering the meaning or tone. The Vatican spokesman, the Rev. Federico Lombardi, said Englishspeaking bishops had requested the changes on the grounds that the first

ATICAN CITY—The Vatican is watering down a groundbreaking overture to gays—but only if they speak English. After a draft report by bishops debating family issues came under criticism from many conservative Englishspeaking bishops, the Vatican released a new English translation on Thursday. A section initially entitled “Welcoming homosexuals” is now “Providing for homosexual persons,” and the tone of the text is significantly colder. The initial English version—released on Monday along with the original—accurately reflected the Italian version in both letter and spirit, and contained a remarkable tone of acceptance to gays. The other translations were similarly faithful to the Italian and didn’t deviate in tone. Conservatives were outraged, and

spoke from Texas. Frieden faced some of the toughest questions. He was pressed to explain whether Vinson should have been allowed to travel by commercial airliner to visit family in Ohio after she was identified as having been one of Duncan’s caregivers. That would have been fine, Frieden said, had she worn proper protective gear while treating Duncan. If she hadn’t, she shouldn’t have traveled, he said. More than 70 are Presbyterian health-care workers who had contact with Duncan, sometimes without proper protective clothing, according to nurses at the hospital. (Varga disputed the nurses’ claim about inadequate protective gear.) Other developments: ■ The death toll from Ebola will rise this week to more than 4,500 people from the 9,000 infected and the outbreak is still out of control in three West African nations. Dr. Isabelle Nuttall, director of the World Health Organization’s global capacities, alert and response, said new numbers show the outbreak is still hitting health workers hard despite precautions—with 427 medical workers infected and 236 dead—mainly because Ebola victims are most contagious around the time they die. ■ Secretary-General Ban Ki-moon said on Thursday that a trust fund he launched to provide fast and flexible funding for the fight against Ebola has only $100,000 in the bank. UN Spokesman Stephane Dujarric said the trust fund is part of a nearly $1-billion UN appeal for humanitarian needs in Liberia, Sierra Leone and Guinea, the three countries hardesthit by the deadly virus. ■ House Republicans demanded a travel ban from Ebola-ravaged West Africa on Thursday, calling it the only sure way to protect Americans from the virus’s deadly reach. Administration officials resisted, as anxiety over the disease raced through the country and rattled the White House and Congress.

■ Jamaica, Guyana and Trinidad and Tobago on Thursday became the latest countries in the Western Hemisphere to restrict travelers from West African nations struggling with an epidemic of the Ebola virus. The announcements came a day after Colombia and Saint Lucia ordered similar prohibitions. Authorities in Jamaica imposed an immediate entry ban on anyone who has been in Guinea, Liberia and Sierra Leone within four weeks. Frieden acknowledged that Vinson called the CDC before her return flight to Dallas, said she had a minor fever, and asked whether she could travel. “My understanding is she reported no symptoms to us,” he told the committee. But a day earlier, Frieden said that since Vinson had a fever, she shouldn’t have flown. A series of bad decisions, beginning with Presbyterian’s failure to admit Duncan when he showed up at the emergency room with a high fever and severe pain, has left hundreds of people with potential exposure to the deadly virus. Many more were either on the Frontier Airlines flight that Vinson took from Cleveland to Dallas or were on subsequent flights before the aircraft was taken out of service. Concerns about passengers’ exposure have spread nationwide, including in North Texas. On Thursday Rockwall County announced that four residents who were on Monday’s flight were being monitored by the state health department and the CDC. Another county resident, a Presbyterian health-care worker, is also being monitored. Despite her slight fever, health officials said, the chance that Vinson spread Ebola to other passengers was very small. Still, school districts in Ohio and Texas contacted parents after learning that some of their students had been passengers on the plane or were the children of passengers. Some schools were closed so they could be disinfected. MCT and AP

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b3-1

ANSELM KIEFER: PERHAPS EUROPE’S GREATEST LIVING ARTIST Taking some actions

EAR God, help us resolve our problems by understanding the situation. Not complaining because it will lead us to nothing. Not telling it to people not concerned about it. Not blaming the problems on others. Not absorbing and feeling depressed about them. But taking some actions and pieces of advice from professionals and more reflections accompanied by prayers and trust in God. Amen. 95.1 SHINE AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

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

Source: CDC

Life

NARCISSISTIC D3 BEHAVIOR— AND HOW THE REST OF US CAN COPE

BusinessMirror

Saturday, October 18, 2014

A broader look at today’s business n

Saturday, October 18, 2014 Vol. 10 No. 10

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

NTERNATIONAL Monetary Fund chief Christine Lagarde lamented last week that the world has “too little economic risktaking, and too much financial risk-taking.” In the Philippines there might be both.

A group of Japanese lawmakers bow to a Shinto priest after paying respect for the war dead at Yasukuni Shrine during an annual autumn festival in Tokyo, on Friday. The shrine enshrines war criminals, including wartime leader Hideki Tojo, among the 2.5 million war dead. Japan’s Prime Minister Shinzo Abe sent religious offerings to the shrine. Abe last visited Yasukuni in December, triggering anger from China and South Korea. AP/EUGENE HOSHIKO

Fumbles by the Centers for Disease Control and Prevention (CDC) and by Texas Health Resources Presbyterian Hospital Dallas have demolished CDC assurances that any hospital in America could effectively deal with an Ebola case, said Rep. Tim Murphy, Republican-Pennsylvania, the subcommittee chairman. “CDC and our public-health system are in the middle of a fire. Job One is to put it out completely,” Murphy said. The subcommittee’s top Democrat, Rep. Diana DeGette of Colorado, echoed the concerns. “It would be an understatement to say that the response to the first US-based patient with Ebola has been mismanaged, causing risk to scores of additional people,” she said. The questions on Capitol Hill about Presbyterian—and about US hospitals in general—arose as Nina Pham, a Presbyterian nurse infected with the Ebola virus, was moved from Presbyterian to a National Institutes of Health (NIH) clinic in Bethesda, Maryland. Pham, 26, was among those who cared for Thomas Eric Duncan of Liberia, who died of Ebola in the Dallas hospital on October 8. Amber Vinson, 29, a second Presbyterian nurse diagnosed with the disease, was moved earlier to Emory University Hospital in Atlanta, which has special isolation units and has treated three Americans who contracted Ebola in Africa while on aid missions. The fact that two nurses at Presbyterian contracted the disease while treating an Ebola victim proves that “the frightening truth is that we cannot guarantee the safety of our health-care workers on the front lines,” said Rep. Michael Burgess, Republican-Texas, a physician. Dr. Tom Frieden, director of the CDC, and Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, a part of the NIH, testified before the committee in Washington. Dr. Daniel Varga, chief clinical officer at Presbyterian,

little effect on biz travel

B3-1 | Saturday, October 18, 2014 • Editor: Lyn Resurreccion

resolve the crisis with protesters, who were already angered by a video of a group of officers beating a handcuffed activist. Officers swiftly tore down metal barricades, bamboo and wooden planks used by protesters to block off the streets, as well as blue and white striped tarps covering their main campsite in the middle of a four-way intersection. Much of the protest zone was cleared in about half an hour. Police surrounded about 30 protesters, who did not put up resistance. There were no clashes but several activists lay down on the street after the operation and refused to budge. About 200 other protesters who had dispersed earlier returned to join them to occupy a block of the southbound lanes on busy Nathan Road. Police said they would be allowed to stay. Leung said on Thursday the protests, which have disrupted traffic in key roads and streets in three business districts since September 26, could not go on indefinitely. Protesters are pressing for a greater say in choosing the semiautonomous Chinese city’s leader in an inaugural direct election, promised for 2017. AP

PHL business ‘vulnerable’

u.s. lawmakers criticize dallas medics for poor handling of ebola crisis

Cats and dogs: There are no reports of cats or dogs contracting or spreading Ebola. There is some evidence that dogs can carry the virus without developing symptoms.

i.m.f. sees local companies taking too many risks as world economic outlook dims

INSIDE

HK POLICE CLEAR SMALLER PROTEST ZONE

Primates: Monkeys and apes can contract and spread Ebola. Primates infected with Ebola will experience fever, decreased appetite and sudden death.

BusinessMirror

three-time rotary club of manila journalism awardee

ONG KONG—Riot police cleared an offshoot Hong Kong pro-democracy protest zone in a dawn raid on Friday, taking down barricades, tents and canopies that have blocked key streets for more than two weeks, but leaving the city’s main thoroughfare still in the hands of the activists. Hundreds of officers, some in helmets and shields, descended in the early morning on the busy district of Mong Kok, a smaller protest zone across the Victoria Harbor from the main occupied area in the city’s fi nancial district. The key thoroughfare in Admiralty, near the heart of the city’s fi nancial district, remained occupied by protesters. The dawn operation—the third in recent days by police to retake streets from protesters—came hours after Hong Kong Chief Executive Leung Chun-ying sought to defuse a bitter standoff with student-led democracy protesters by reviving an offer of talks over democratic reforms in the city. However, Leung warned police wouldn’t refrain from clearing protest sites while holding talks and the latest operation is likely to make it harder to

World»B3-3

November

Bats: Fruit bats in Africa can carry Ebola. There are no known cases of North American bats carrying Ebola, so the risk of an outbreak from bats in the U.S. is low.

THE diagnosis of Ebola in a second health worker in Texas raises questions about how well researchers understand how the virus spreads, and whether the virus is changing in a way that makes it easier to transmit. What Ebola? Survey finds

Amber Vinson

Ebola in animals

Companies in the Southeast Asian nation eager to make acquisitions and capital investments are piling on foreign debt, in the process leaving the economy vulnerable should emerging-market currencies get roiled again. By year-end, Philippine companies would take as long as a record four years to repay debt using operating earnings, said Xavier Jean, the Singapore-based director of corporate ratings at Standard & Poor’s (S&P). By comparison, the figure is one year or less for Indonesian businesses, and about two years for Malaysian ones. Philippine corporate exposure to foreign debt climbed to 26 percent of total debt last year, from 15 percent in 2011, he said, citing a study of 100 Southeast Asian firms. Continued on A2

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WINTER LANDSCAPE (1970) ROYAL ACADEMY

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THE RENOWNED ORDERS OF THE NIGHT SEATTLE ART MUSEUM

Anselm Kiefer: Perhaps Europe’s greatest living artist

B S J the.beast@zoho.com

S an artist like a doctor? If a doctor is today’s version of what a tribal medicine man was in the past, yes, an artist is like a healer if he acts as a shaman to mankind. By addressing his country’s and the world’s dark past and unrealized future, a man who confronts us with deep truths has become perhaps Europe’s greatest living artist: Anselm Kiefer, a man not exactly known by many but is the recipient of an honorary membership in the United Kingdom’s Royal Academy (RA) and is the subject of a major retrospective in its halls which seems to have adopted him from his country of birth. To say that Kiefer was born in Germany might come as a shock when one finds out that he used to snap self-portraits in his father’s German army uniform standing on rocky outcrops, sea shores, or in front of famous war-time buildings giving the Nazi salute. The gesture made in various locations in France, Switzerland and Italy was not just shocking, but illegal in Germany,

despite the artist’s assertion that it was a call for Germans to remember and acknowledge the loss to their culture that was enabled by the mad xenophobia of the Third Reich, and not a neo-Nazi celebration, of which he has been accused of. Current law in Germany forbids the depiction of National Socialist images, including the swastika and the Hitler salute. But an artist will find ways of subversion in search of dire fundamentals. Kiefer’s project was his way of forcing his fellow Germans to confront the past rather than ignore its consequences. The affront he generated has seen his relationship with his countrymen remain uneasy. But surprisingly, the bulk of his oeuvre, he once said, has been bought by Jewish art collectors. And as some of the British themselves have been fond of telling, there is perhaps no country more open to welcome a prophet than Cool Britannia. Thus, the honorary RA membership and an ongoing retrospective in its halls. But whether Kiefer is the pinup boy for this or that demographic or national interest is beside the point. He has made himself one with humanity through the grist

of his work. For example, in the painting Margarete (oil and straw on canvas, 1981) the artist draws inspiration from Paul Celan’s famous poem Todesfuge (Death Fugue). Celan was a German-speaking Jew, born in Romania, and he wrote his poem in reaction to his incarceration in a Nazi concentration camp. Todesfuge’s two protagonists are Margarete, a German prison guard, and Shulamith, a prisoner. In Margarete, the painting, Kiefer creates a sort of cohabitation between representations of the remains of the female guard’s blond tresses and that of Shulamith’s dark hair. The meanings are as infinite as the stars and as open-ended as history itself. Other works deal with similar heavyweight issues in increasingly large and confrontational canvases with additions of lead, broken glass, dried flowers or other plant parts, resulting in encrusted surfaces and thick layers of impasto that seem suited to his choice of subject matter that ranges from themes of German history and the horror of the Holocaust to spiritual concepts, such that of the Kabbalah. From national identity, his oeuvre has spread to the collective memory,

and also includes occult symbolism, theology and mysticism. The theme of his entire corpus is the trauma experienced by entire societies, and the continuous cycles of life. On account of his becoming a man with ideas bigger than himself, it is no wonder he has been awarded. The retrospective at The Royal Academy follows Kiefer’s appointment to the chair of creativity in art at the Collège de France and other awards, including the Wolf Prize for Art (1990), the International Prize by the Jury of the 47th Venice Biennale (1997), the Praemium Imperiale of Japan (1999), the Merit Cross 1st Class of the Order of Merit of the Federal Republic of Germany (2005), and the Austrian Decoration for Science and Art (2005), among others. Kiefer is represented by Yvon Lambert Gallery in Paris, Gagosian Gallery in New York, White Cube in London and Thaddaeus Ropac in Paris and Salzburg. His ongoing RA retrospective in London runs till December 14. ■ For more information, visit RoyalAcademy.org.uk.

‘Embodied Narratives’ at Now

RECLAIMING LANDS by Benjie Cabangis

NOW Gallery and Auctions continues its last quarter programming with Embodied Narratives, a group exhibit that amplifies the artists’ power to tell a story. Artists are great storytellers. They do narrate, yes, not with words but through color, forms, symbols and the myriad ways of compositional device at their disposal. It is indeed a challenging task—to convey feelings of reverie, ennui, hope, or recount a moment of epiphany or strange incidents, not through the written or spoken word, but through a random or carefully planned arrangement of visual elements. The artist’s blank canvas is likened to a writer’s paper, waiting for the first drop of paint and inspiration, receptive to the commands of the artist who has envisioned a language that he deems

NOMINAL MARBLE by Jonathan Olazo

most creatively suitable. All throughout art history, every painting, drawing or sculpture made is an impassioned retelling of specific histories, incidents and metanarratives, from Rubens Massacre of the Innocents, which tells of the horrors of mass infanticide, to the anti-art and antiestablishment stance of Marcel Duchamp’s readymades. Embodied Narratives meanders around the individual stories of the 12 participating artists. For most of the time, these little and big stories serve as the painter or sculptor’s impetus for creating. As Pablo Picasso asserted, “Art is just another way of keeping a diary.” Every piece created is a reference to values held dear, to significant relations and future

aspirations. The exhibit is a compilation of such and other tales. Contributing their stories for the show are Leo Aguilar, Benjie Cabangis, Norberto Carating, Neil Doloricon, Rock Drilon, Noëll El Farol, Lenore RS Lim, Jonathan Olazo, Michelle Perez, Jinky Reynoso, Nestor Vinluan and Edwin Wilwayco. Now Gallery and Auctions (www. nowgallery.net) present with no small pride these artists who have continued to demonstrate consistency and commitment to their art and their continuing narratives. Now Gallery and Auctions will continue to represent them as it transitions to become Now Private Sale, a rebranded entity devoted to connecting these artists to the right market in the most professional and ethical manner.

life

lakers Looking bad Sports LAKERS BusinessMirror

| Saturday, OCtOber 18, 2014 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

LOOKING BAD

The Lakers got drilled again in another exhibition, 119-86, against Utah in front of a sparse Honda Center crowd. They have now experienced their worst two-game stretch in exhibition history, adding Thursday night to a 41-point loss last Sunday to Golden State. By Mike Bresnahan

Los Angeles Times

NAHEIM, California—There are a handful of reasons for exhibition games. Get players in shape. See what schemes need work. Make a few extra bucks at the ticket office. Hope nobody gets hurt. For the Los Angeles Lakers, though, it has been a historic October for not-so-pleasant reasons. They got drilled again in another exhibition, 119-86, against Utah in front of a sparse Honda Center crowd. The Lakers have now experienced their worst twogame stretch in exhibition history, adding Thursday night to a 41-point loss last Sunday to Golden State. That makes consecutive losses totaling 74 points, easily outdoing their previous exhibition low of 47 points in back-to-back defeats in 2012. Kobe Bryant scored 27 points and Carlos Boozer had 17, but that was about it for the Lakers, who suddenly can’t make a three-point shot. They’ve gone 11 consecutive quarters without scoring from beyond the arc, missing all five attempts there on Thursday. Rookie Julius Randle was held out of the second half because of the dreaded “coach’s decision” and Steve Nash couldn’t suit up yet again. Lakers Coach Byron Scott liked one thing about the game. “That it’s over,” he said. In defense of the Lakers, they were without Nick Young, Jeremy Lin, Xavier Henry, Ryan Kelly, rookie Jordan Clarkson and Nash, whose case gets more curious every day. Nash aggravated his back on Wednesday while lifting travel bags at home and did not accompany the team to a scheduled event at a casino that night but, surprisingly, told Lakers trainer Gary Vitti on Thursday afternoon he wanted to play against Utah. So Nash went on the court an hour before the game, shot around for a while and went back to the locker room. He never made it back to the court. Randle didn’t make it to the second half. He was bothered by blisters on the bottom of his feet but they were a secondary reason for not playing after the second quarter. Scott said it wasn’t a punishment, but “I still don’t think the last couple of games that he’s played as hard as he can play.” At least there was Bryant. He made 10-of-23 shots in 28 minutes and showed a few things against Utah. 1) You still can’t leave him wide open. He moved around a solid screen by Jordan Hill and drilled a 17-footer alone on the right side. 2) The pump fake can still work. He got rookie Rodney

Hood to bite on one in the first quarter, drawing a foul and converting a three-point play. 3) He can still be a playmaker. He drove past Gordon Hayward, hung in the air for a bit and found Boozer underneath for an easy basket. On another play, he took an offensive rebound and immediately found Boozer underneath for a basket. 4) He also still loves motivation. He didn’t enjoy being the 25th-best player in ESPN’s annual preseason rankings last season, so he certainly didn’t like being No. 40 this season. “I’ve known for a long time that they’re a bunch of idiots,” Bryant said. He kind of smiled. Bryant got some support from his coach. “I would just hate to be one of the guys that doubted him,” Scott said. “I see where he’s come from to this particular point after the [Achilles] injury and I know he’s going to get stronger. I think he’ll have the last laugh.”

SUCCESFUL SURGERY ON KD’S FOOT

THE Oklahoma City Thunder say star forward Kevin Durant had successful surgery on Thursday to address a broken bone in his right foot and will be out for at least six weeks. General Manager Sam Presti said the procedure was performed at a clinic in Charlotte, North Carolina, after the team, Durant and his representatives “jointly decided” surgery was needed. Durant will be reevaluated in six weeks. The reigning National Basketball Association Most Valuable Player was diagnosed over the weekend with a “Jones fracture,” a broken bone at the base of his small toe. The Thunder open the season on October 29 at Portland. A six-week absence could have Durant back for the start of December, with about 65 games remaining.

MODIFICATIONS ON INSTANT REPLAY

THE NBA’s Board of Governors has approved several modifications to the league’s instant-replay system. The most notable change announced on Thursday night allows officials to use replay only in the last two minutes of overtime. Last year instant replay was available for use in the entire overtime period. Referees can also now review plays to determine if a clear-path foul is warranted even if they did not initially call a clear-path foul. Previously a clear-path foul had to be called for the play to be eligible for review. Referees also will be able to use replay to determine if a foul merits being upgraded to a flagrant foul. Last season they could only use replay if a flagrant foul was called on the floor. With AP

LOS ANGELES Lakers forward Jeremy Tyler lands on Golden State warriors’ James Michael McAdoo during their preseason game in Ontario, California, recently. AP

GRIFFIN ExCITED AbOUT PLAYING FOR NEw OwNER By Ben Bolch Los Angeles Times

bLAKE GRIFFIN writes about his uneasy existence under former team owner Donald Sterling and his excitement about playing for Sterling’s successor, Steve ballmer. AP

OS ANGELES—Blake Griffin continues to evolve in ways that have nothing to do with the increased range on his jumper, going from funny pitchman to deadpan poet to captivating essayist. In a story published online on Thursday, the Los Angeles Clippers star forward wrote about his uneasy existence under former team owner Donald Sterling and his excitement about playing for Sterling’s successor, Steve Ballmer. “Steve is a good dude,” Griffin wrote in the 1,843-word piece for the Players’ Tribune, a new digital venture founded by former New York Yankee Derek Jeter. “He’s like a cool dad who gives you candy. Donald was like a weird uncle.” Speaking with reporters at the Clippers’ practice facility, Griffin called the story his “farewell to that world” involving Sterling, who was stripped of his ownership this summer over disparaging remarks about black people. “The idea behind it is [that] for so long, we kind of just went with what we had, and now we’ve got something great, and I don’t want that to be overlooked,” said Griffin, who wrote under the title of senior editor. “That’s the thing that should be really important.”

Griffin detailed Sterling’s vibe at one of the owner’s infamous “White Parties,” thrown at his Malibu mansion shortly after the Clippers made Griffin the No. 1 pick in the 2009 draft. Sterling, the only attendee dressed in black, led Griffin by the hand as he introduced him in the same fashion to each guest, asking Griffin not only what he thought of Los Angeles but of the women in LA. “At this point, a lot of you are probably wondering why I didn’t pull my hand away, or why I didn’t just leave the party,” Griffin wrote. “For one, I was a 20-year-old kid from Oklahoma. But even if I had been 25, I don’t know if it would’ve been any different. The guy was my boss. Ask yourself, how would you react if your boss was doing the same thing to you?” Griffin wrote he had known about Sterling’s past long before he watched the owner heckle Clippers guard Baron Davis in a game during Griffin’s rookie season. Griffin typed Sterling’s name into Google when he first figured the Clippers would draft him, triggering results that included “Donald Sterling is a racist.” The rookie-to-be said he figured everyone knew about Sterling’s indiscretions and didn’t think about raising the issue when he arrived in LA. “Just picture me at the press conference my rookie year,” Griffin wrote. “‘Uh...hey, guys, before we talk about today’s

game, did you happen to see that investigative report on my owner?’” Griffin acknowledged he was conflicted when audio recordings were released last spring in which Sterling told a female companion he did not want her bringing black people to games at Staples Center. Many friends questioned how he could play for someone so hateful. “My feeling, right or wrong, was that we should shut it all out and go out and play for our fans, our families, and for each other,” Griffin wrote. “For people to ever think we were playing for Donald Sterling is comical.” Griffin was sitting in the trainer’s room next to teammate Chris Paul when Sterling’s interview with CNN’s Anderson Cooper aired on television. Sterling told Cooper, almost defiantly, that his players loved him. “C. and I looked at one another from across the room and just tried our best not to laugh,” Griffin wrote. Ballmer has prompted a different kind of reaction since taking over the Clippers in August. Griffin wrote that he loved the new owner’s energy and his willingness to move team employees from temporary to permanent contracts, while providing trainers with body scanning software that Sterling had refused to purchase. “Top to bottom,” Griffin wrote, “everybody just appreciates being appreciated now.”

sports

SM to build P400-M hotel; eyes another mall in Negros Occ.

ACOLOD CITY—Following the inauguration of its P1.5-billion expansion project at SM City Bacolod on Thursday, SM Prime Holdings Inc. (SMPH) CEO Henry Sy said they would also build a hotel in Bacolod and another mall in a yet-to-be identified site in Negros Occidental. “We have good intentions for Bacolod,” said Sy, also SMPH president. “The hotel is in the works. We might start developing the project next year.” Sy said he doesn’t have the final cost of the project yet, “but I believe that it will be [between] P400 million and P500 million.” He added that they are looking at negotiating in other towns in the province to put up a mall. The newly opened Annex at the mall’s North Wing includes the SMX Bacolod Convention Center, SMPH’s first in the Visayas. See “SM,” A2

PESO exchange rates n US 44.8180

FILIPINO CRAFTSMANSHIP Filipino designers from different parts of the country showcase their works in the Manila FAME 2014, the country’s premier design and lifestyle event. It showcases the craftsmanship, design innovation, eco-sustainability and artisanship of Philippine-made products. The event is ongoing at the SMX Convention Center, Mall of Asia Complex, Pasay City, until tomorrow. NONIE REYES

BSP exec sees stronger FDI flow if investors look at fundamentals

GUINIGUNDO: “If they are just looking at the fundamentals, I think we should merit a higher share of FDI [foreign direct investments] because the macroeconomy continues to improve. The government is also setting the stage for more infrastructure and power.”

By Bianca Cuaresma

he Philippines could attract more foreign direct investments (FDI) if only investors were more discerning of fundamentals rather than sentiment in the local markets, the Bangko Sentral ng Pilipinas (BSP) said on Friday. At the sidelines of the 44th International Association of Financial Executives Institutes (IAFEI) in Makati City, BSP Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo said more long-term investments from foreign investors could

flow to the Philippines given the record of stability of the $270-billion economy. “If they are just looking at the fundamentals, I think we should merit a higher share of FDI because the macroeconomy continues to improve. The government is also setting the stage for more infrastructure and power,” Guinigundo said. “So, if they are here for the long haul, there is every reason for them not only to stay but to relocate here in the Philippines. In other words, the prospects here continue to be bright,” he added. Continued on A8

n japan 0.4216 n UK 72.0942 n HK 5.7773 n CHINA 7.3195 n singapore 35.2149 n australia 39.3727 n EU 57.3939 n SAUDI arabia 11.9479 Source: BSP (17 October 2014)

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Saturday, October 18, 2014

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Lemon Law test-case mediation collapses

By Joel R. San Juan

HE Department of Trade and Industry (DTI) is set to resolve on the merits of the first case that would test the country’s newly signed Philippine Lemon Law after mediation between a car manufacturer and its client failed to prosper.

The Lemon Law protects new-car owners from factory defects. Under the Lemon Law, anyone who purchases a brand-new car and experiences defects within a year after purchase would be able to secure a refund or replacement of the unit if repairs prove useless. In a notice issued by Mediation

Officer Gerald Jey Litong, the DTI said its mediation efforts had failed between businessman Ricardo Nolasco Jr., who bought a brand-new high-end car from a European car manufacturer through a Philippine dealer on May 30. Thus, the DTI said, “The subject issues-concerns raised by the party

complaining are deemed submitted for adjudication.” In his complaint, Nolasco claimed that the car was defective because of the “erratic and/or random error messages that kept on appearing on the dashboard, which are very alarming and misleading” and “had actually impaired and/or affected the performance of the subject vehicle as the electronic suspension and steering wheel… became so hard and became very difficult to handle.” In its October 10 notice, the DTI said “…efforts to encourage both parties to settle their differences or at least come to terms failed.” On September 29 the DTI issued a notice of mediation to the parties in the case. Under Republic Act (RA) 10642, or the Philippine Lemon Law, “in the event that both parties do not undertake arbitration proceedings, at least one of the parties may com-

mence adjudication proceedings, administered by the DTI.” The new law states that the DTI, the government agency that has original jurisdiction over disputes involving RA 10642, “shall rely on the qualified independent findings as to conformity to standards and specifications established herein, and in no case shall adjudication proceedings exceed 20 working days.” It provides that a DTI ruling in favor of the complaining consumer will compel “the manufacturer, distributor, authorized dealer or retailer of the branch-new vehicle to either replace the motor vehicle with a similar or comparable motor vehicle in terms of specifications and values, subject to availability, or accept the return of the motor vehicle and pay the consumer the purchase price plus the collateral charges.” The complaint stated that since the car was purchased, the vehicle had to

be returned to the manufacturer and the dealer for multiple repairs. According to the complaint, “Nolasco had to return the subject vehicle four times to the respondents to fix the said problem.” It pointed out that despite the assurances that “everything has been corrected and that the defect will not be repeated anymore…the said erratic and/or random error messages started to display again.” The complainant said that on August 27, he sent a demand letter to the Philippine representative of the car manufacturer, invoking his rights under RA 10642 and the Consumer Act of the Philippines under RA 7394. He said he wanted a refund or a replacement of defective car with a brand-new unit, but the car company failed to act on his demand, prompting him to elevate the case to the DTI.

Auto. . .

continued from a8

more integrated manufacturing industry. Aldaba’s data showed that in line with the auto industry’s potential to reach sales of 500,000 units by 2022, the domestic production share is at 80 percent, or a production volume of 400,000 by that year. Import volume is pegged at 100,000 units. This projection would assume a portion of the production would be for exports, Aldaba said. Based on the chart presented, current domestic production is around 110,000 units with imports at 130,000 units. Notably, without an auto program in place, domestic production can dwindle to 100,000 units to as low as 50,000 by 2022, with imports spiking to 400,000 units, Aldaba’s data showed. The DTI data are considered preliminary assumptions, while the auto program and its timebound incentive package is being ironed out. The trade assistant Secretary added the projected cost savings will stretch over a period of five years, “hopefully when the auto program is put in place by 2016 and actual car production to begin in 2017.” Other economic benefits of the auto program cited by Aldaba is the creation of 200,000 to 300,000 jobs for skilled and highly skilled workers and the strengthening of the auto supply chain in the country to support other manufacturing sectors. With the demand for vehicles seen to balloon between 3 million to 6 million units in the Asean region from 2015-2022, the Philippines can position itself to catch the third wave of motorization from 2015 to 2016, Aldaba said. She cited the high population growth in the Philippines and low vehicle ownership as factors that backstops this potential. An additional factor that can help the Philippines capture the third wave of motorization is the spiking number of households who can now afford to buy vehicles. Aldaba said this cohort is pegged in 2013 at 26 percent of households in the P10,000-amonth income bracket. She sees this cohort growing to 36 percent by 2017. The DTI has been putting efforts on raising the competitiveness of the automotive industry as this is considered the backbone of the larger manufacturing sector, according to Aldaba. The CARS Program is an initiative under the the manufacturing resurgence program, which aims to boost manufacturing sector’s contribution to 30 percent of gross domestic product by 2020.

Falling oil prices shake up global economies Continued from A8

With a large reserve fund—estimated to be $700 billion—it could withstand a longer period of lower prices. Saudi Arabia may be interested in using lower prices to force Western oil companies to cut back on some less profitable production in an effort to secure market share. Iraq is counting on rising revenue both from high oil prices and increasing production to help it fight the insurgency gripping the country and recover from war. Revenue may now fall instead.

Asia

The picture is reversed in Asia, where most countries are major importers and some subsidize the price of fuels. China is the second-largest oil consumer and on track to become the largest net importer of oil. Falling prices will provide China’s economy some relief, according to Huang Bingjie, professor from the School of Economics and Management at China University of Petroleum. But lower oil prices won’t fully offset the far-wider effects of a slowing economy. India imports three-quarters of its oil and analysts say falling oil prices will ease the country’s chronic currentaccount deficit. Samiran Chakraborty, head of research in India for Standard Chartered Bank, also says the cost of India’s fuel subsidies would fall by $2.5 billion during its current fiscal year if oil prices stay low. Japan imports nearly all of the oil it uses. Also, following the accident at the Fukushima Dai-ichi nuclear power plant in 2011, the country’s power prices have risen because it has had to turn to expensive oil and natural gas to generate electricity. The recent lower oil prices help, but are a mixed blessing. They lower inflation at a time when Prime Minister Shinzo Abe is trying to raise it with his deflation-fighting “Abenomics” growth strategy.

North America, South America and Europe

ASIA-EUROPE SUMMIT Foreign Secretary Albert F. del Rosario (right) is welcomed by Italian Prime Minister Matteo Renzi at the 10th Asia-Europe Meeting in Milan, Italy, on Thursday. The twoday summit, which aims to forge closer economic and cultural ties and confront common threats, opened against the backdrop of the conflict in Ukraine, student protests in Hong Kong and escalating concerns about the Ebola outbreak. The biannual gathering also touches on natural-disaster response, international crime, terrorism and climate change. AP/Daniel Dal Zennaro

PHL business ‘vulnerable’ Continued from A1

“The big risk is that they mistime market conditions and they don’t slow down capital spending soon enough before another financial crisis occurs,” Jean said in an October 15 interview. “If one of the conglomerates starts facing some financial tightness, you could have confidence issues between the banking system and the conglomerates.” Concerns that Europe’s economic woes will hinder a global recovery saw Asian stocks slide to a six-month low on Thursday, highlighting the vulnerability of emerging markets to heightened risk aversion among investors. Companies, including San Miguel Corp., and Ayala Corp. have been using debt to fund mergers, acquisitions and capital spending as they seek to benefit from an e conom ic res u rge nce u nde r President Aquino. “At present, we view refinancing risk as moderate because companies have a lot of cash,” Jean said. “But large cash balances aren’t going to remain there forever if they keep spending the cash they have.”

Cash flows

IN a financial crisis, company revenue and cash flows can suffer, creating the potential of short-term debt-repayment problems, he said. In such a situation, banks might not be willing to extend additional lines of credit, he said. Debt held by the 17 Philippine companies included in the study nearly trebled to $40.7 billion in the first quarter of this year from end2008, S&P estimated. San Miguel, the biggest Philippine company, saw its debt surge more than fivefold to P631.9 billion ($14 billion) in the second quarter from end-2008 as it expanded into energy and infrastructure, according to data compiled by Bloomberg. The company’s president, Ramon Ang, said in July he’s prepared to spend as much as $10 billion on assets overseas. The benchmark Philippine Stock Exchange index has fallen 3.5 percent this month, compared with a 3.8-percent drop in Thailand’s SET Index and a 4.3-percent decline in the FTSE Bursa Malaysia KLCI Index as of 5:42 p.m. on Thursday. The peso has fallen about 3 percent against the

greenback in the past three months. “We have to be a bit more cautious, especially for companies that have high debt levels, before we make a recommendation to buy,” said Lexter Azurin, the head of equity research at Unicapital Securities Inc. in Manila.

GDP growth

THE combined revenue of the 17 companies in the study account for about one -fifth of the country’s economy, according to S&P estimates. Philippine gross domestic product increased 6.4 percent in the second quarter from a year earlier, among the fastest in Asia. The IMF cut its outlook for global growth in 2015 this month, even as it expects expansion in the Philippines to remain strong in 2014 and 2015. SM Investments Corp., which has retail, banking and property units, is preparing for higher global and domestic interest rates and the volatility it could create, Cora Guidote, a senior vice president, said in e-mailed answers to Bloomberg News questions. “SM has been borrowing at fixed rates for some time now,” she said on

October 13. “We’re doing business in an emerging economy where volatility is a fact of life. As much as we can reduce risks for the company and for our investors, we would.”

Maturity profile

THE median ratio of net debt to earnings before interest, taxes, depreciation and amortization of Philippine companies is estimated to be 3.5 times to four times by the end of 2014, from 1.9 times in 2008, S&P’s Jean said. The companies reviewed had varied financial risk profiles, S&P said in an October 7 report. About 30 percent had large debt loads, while some 25 percent had conservative balance sheets with moderate-to-low debt levels, according to the report. Ayala plans to use P4 billion of proceeds from a preferred share sale to refinance debt instead of funding infrastructure projects, the company said on Thursday in a statement. “The additional debt that will be refinanced by the preferred shares will help us manage our maturity profile and allow us to fix some of our floating obligations,” it said. Bloomberg News

Low prices could eventually threaten the boom in oil production in such countries as the US, Canada and Brazil because that oil is expensive to produce. Investors have dumped shares of energy companies in recent weeks, helping to drag global stock markets lower. AP

SM. . .

continued from a1

“We have seen the future here. This expanded mall’s features are similar to SM Mega Fashion Hall. That is how much we believe in Bacolod,” Sy said. A convention center, which is starting to host events this week for the Masskara Festival, will be formally opened in November. “With the upcoming opening of the first SMX Convention Center in the Visayas, we are very excited for Bacolod City and the province of Negros Occidental. We are looking forward to showcasing our brand of exceptional service and to be the catalyst of the growth of the MICE [meetings, incentives, conventions, and exhibitions] industry in this side of the Philippines,” SMX Convention Center Vice President and General Manager Dexter Deyto said in a press statement. SMX Bacolod is expected to be the premier exhibition and convention center in the region, the company said. It boasts of modern meeting facilities and services of international standards with 8,218 square meters of event space, pre-function lobby, six meeting rooms and three function rooms that can accommodate 4,500 people, the company added. PNA

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Editor: Dionisio L. Pelayo • Saturday, October 18, 2014 A3

Palace assures Pope safe from Abu Sayyaf By Butch Fernandez

ALACAÑANG on Friday downplayed reported Abu Sayyaf threatsto harm Pope Francis when he arrives in Manila in January. Presidential Deputy Spokesman Abigail Valte assured that the Aquino administration is leaving nothing to chance as far as ensuring the safety of Pope Francis is concerned. “All circumstances are being considered when it comes to the preparations for the visit of His Holiness,” Valte said in a text message to Palace reporters on Friday. She confirmed that “contingencies are also being prepared,” but added that, “unfortunately, we cannot speak about the security preparations in detail.” Valte made the assurance when asked about reports that Mindanaobased Abu Sayyaf bandits have expressed determination to harm the Pope when he comes to visit the Philippines, which boasts of a predominantly Catholic population.

Pope asked to look at human-rights situation

DAVAO CITY—Human-rights groups will seek the intervention of Pope Francis during his scheduled visit to the country early next year to what they insist were continuing State commission of civil and economic rights abuses in the country. “We hope His Holiness Pope Francis will hear and seek them out during his visit in January,” Karapatan Secretary-General Cristina Palabay said.

D.O.H.sets specializedtraining on Ebola

She said that Karapatan’s documentations from July 2010 to September 2014 show there were 127 farmers killed, “as they fought for their right to land,” and another 51 tribal leaders and residents killed, “as they defended their ancestral lands from incursions of big foreign mining corporations.” Palabay added that at least 213 mostly rural residents survived attempts to kill them in the course of military operations, and “tens of thousands [were] displaced because of forced evacuation during military operations.” “We join the Christian faithful in raising the voice of the oppressed, especially the kin of the victims, extrajudicial killing and enforced disappearance, the political prisoners and other victims of human-rights violations, and their desire for justice and peace in the country,” she said. Palabay said the incidence of humanrights violations happened most frequently during military operations in the countryside, as the Armed Forces implement its counterinsurgency Internal Peace and Security Plan Bayanihan. She said that it was no wonder then that many victims were farmers and tribal residents. Palabay added the human-rights groups were elated by the statement of Pope Francis that “human rights are not only violated by terrorism, repres-

POPE FRANCIS

sion or assassination, but also by unfair economic structures that creates huge inequalities.” She said that other human-rights organizations catering to political prisoners also appealed to the pope to look into cases of political prisoners, “especially the elderly and the women.” Karapatan said the groups looking into the plight of political prisoners include the Samahan ng mga ex-Detainees Laban sa Detensyon at Para sa Amnestiya, Desaparecidos and Hustisya. “The 490 political prisoners speak of the kind of democracy the country has, as the government continues to criminalize political acts. This is true for the 14 detained peace consultants of the National Democratic Front who are engaged in the peace negotiations with the government,” Palabay said. Karapatan held on Friday the ecumenical event “Giving Voice to the Cry of the Poor: In Celebration of Love for the Visit of His Holiness Pope Francis.” With Manuel Cayon

3-DAY EXTENDED FORECAST OCTOBER 18, 2014 | SATURDAY

TODAY’S WEATHER

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

NORTHEAST MONSOON AFFECTING NORTHERN AND CENTRAL LUZON. TAIL-END OF A COLD FRONT AFFECTING SOUTHERN LUZON. (AS OF OCTOBER 17, 5:00 PM)

Tail-end of a cold front is the extended part of the boundary, which happens when the cold air and warm air meet. This may bring rainfall and cloudiness over affected areas.

SBMA/CLARK 23 – 29°C METRO MANILA 24 – 30°C

TAGAYTAY CITY 19°C – 27°C

SUNDAY

OCT 20

MONDAY

25 – 30°C

25 – 31°C

TUGUEGARAO

21 – 27°C

21 – 28°C

23 – 32°C

23 – 31°C

OCT 21

TUESDAY

TACLOBAN

25 – 31°C

25 – 32°C

23 – 31°C

CAGAYAN DE ORO

25 – 30°C

25 – 31°C

25 – 33°C

24 – 33°C

23 – 33°C

24 – 33°C

24 – 30°C

ZAMBOANGA

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

METRO CEBU 23 – 30°C CAGAYAN DE ORO CITY 24 – 30°C ZAMBOANGA CITY 23 – 32°C

PUERTO PRINCESA

ILOILO/ BACOLOD

SUNSET

MOONSET

MOONRISE

5:48 AM

5:34 PM

1:49 PM

1:04 AM

19 – 27°C

23 – 30°C

HALF MOON NEW MOON

OCT 16

26 – 31°C

OCT 24

CELEBES SEA

HIGH TIDE

MANILA BAY

1:28 PM

5:57 AM 0.11 METER Partly cloudy to cloudy skies with isolated rain showers and/or thunderstorms

26 – 30°C

26 – 31°C

4:46 AM

0.80 METER

Cloudy skies with rain showers and/or thunderstorms. Light Rains

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

www.panahon.tv

SABAH

LOW TIDE

Partly cloudy to at times cloudy with rain showers.

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

METRO DAVAO 25 – 33°C

SUNRISE

3:12 PM

26 – 30°C

TUESDAY

21 – 28°C

24 – 30°C

22 – 29°C

MONDAY

24 – 31°C

SBMA/ CLARK

22 – 30°C

OCT 21

24 – 31°C

15 – 21°C

19 – 27°C

SUNDAY

OCT 20

24 – 30°C

15 – 21°C

18 – 27°C

OCT 19

25 – 31°C

15 – 22°C

LEGAZPI

PUERTO PRINCESA CITY 26 – 30°C

3-DAY EXTENDED FORECAST

BAGUIO

TAGAYTAY

TACLOBAN CITY 24 – 31°C

Philippines occurs. An orientation will also be given on the geographical and cultural setting in West Africa to help provide background for all participants on why the disease has spread there, and what has been done to bring it under control. The training will be made available to three groups of participants coming from all DOHreferral hospitals, private hospitals and local government hospitals. Participants from each hospital will be composed of the hospital ’s infection, control specialist, physicians, nurses and medical technologists. The training is being delivered using a mix of practical exercises and theoretical learning and will be based on standard WHO training, on EVD. It will involve pre- and post-training examinations. In addition to the general training, some of the “classes” will be done by selected groups, for example, the clinical guidelines for the treatment of cases, the principles of outbreak control and response, and logistics support. “With all these preparations and with the assistance of international partners like the WHO, we are optimistic that we will be able to respond appropriately to EVD if it enters the country,” Ona said. PNA with Claudeth Mocon-Ciriaco

METRO CEBU

LEGAZPI CITY 23 – 30°C

ILOILO/ BACOLOD 25 – 30°C

ONA: “After the successful National Ebola Summit held on Friday [October 10], we want to primarily increase the capacity of our health workers nationwide in responding to EVD [Ebola Virus Disease], like what we did when SARS and H1N1 threatened the country a few years ago.”

METRO DAVAO

TUGUEGARAO CITY 21 – 27°C BAGUIO CITY 15 – 22°C

OCT 19

METRO MANILA

LAOAG

LAOAG CITY 23 – 32°C

HE Department of Health (DOH) announced on Friday that it will conduct specialized training programs, in coordination with the World Health Organization (WHO) in the Philippines, for health workers on how to detect and treat cases of Ebola Virus Disease (EVD), and prevent the spread of the disease in the country. “After the successful National Ebola Summit held on Friday [October 10], we want to primarily increase the capacity of our health workers nationwide in responding to EVD, like what we did when SARS and H1N1 threatened the country a few years ago,” Health Secretary Enrique Ona said. The training, starting October 28 and every week thereafter, has been designed by the DOH and the WHO Philippines, and will be jointly managed by both organizations. Expert trainers, such as experts in infectious diseases and EVD, have been recruited from within the Philippines and overseas. “The WHO Philippines is delighted to be working with the DOH to provide training on the detection and treatment of EVD, and on how to prevent its spread here in the Philippines. The health workers trained will be essential for Philippine efforts to protect the country from the potential threat of the disease,” said Julie Hall, WHO representative for the Philippines. The training will provide a deeper understanding of EVD, its transmission and epidemiology. It will also enhance the participants’ practical skills in particular areas (such as personal protection, security and safety). The knowledge and skills gained from the training are expected to increase the capacity of the national health system to prevent or respond if an imported case of EVD in the

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Economy

A4 Saturday, October 18, 2014 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

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Fuel shift won’t assure Ilijan plant full-capacity power generation

By Lenie Lectura

HE Power Sector Assets and Liabilities Management Corp. (PSALM) said on Friday that the proposed fuel shift of Unit 1 of the Ilijan power plant from biodiesel to pure diesel is not an assurance that it can run at its full capacity, contrary to the Department of Energy’s (DOE) earlier pronouncement. The Ilijan combined-cycle power plant is composed of two units with a capacity of 600 megawatts (MW) each. Unit 2 is scheduled to undergo a maintenance outage during the very same time the Malampaya natural-gas facility also goes offline from March 15 to April 14, 2015. Ilijan is among the three power plants fueled by the Malampaya

natural-gas facility. The other two are the1,000-MW Santa Rita and 500-MW San Lorenzo power plants. The Santa Rita and San Lorenzo power plants of the Lopez group can run on expensive liquid fuel whenever Malampaya is offline. The Ilijan power plant, meanwhile, can run on biodiesel. The problem, however, is when

Ilijan runs on biodiesel its capacity will be reduced to 420 MW from 600 MW per unit, DOE Secretary Carlos Jericho L. Petilla said. This is because, under the Biofuels Act, a 2-percent biodiesel (diesel with coco methyl ester) blend is required for all retail pumps and power plants running on diesel. Petilla explained that, when this happens, the Ilijan power plant’s efficiency level will be reduced and, as such, its capacity won’t be maximized. Petilla proposed that Ilijan Unit 1 run on pure diesel. On Friday PSALM said the fuel shift to diesel will not provide assurance that the load of the plant’s Unit 1 would increase from 420 MW to 600 MW whenever the naturalgas supply from the Malampaya is not available, said the state firm’s President and CEO Emmanuel R. Ledesma Jr. “In any case, this shift cannot be completed in time for the Malampaya shutdown from March 15 to April 14, 2015,” he added. “The change in the Ilijan power plant’s alternative fuel from biodiesel to pure diesel has been proposed to augment the power supply during the Malampaya shutdown in 2015,

with an expectation that this will ensure operation of Ilijan’s Block 1 at its full 600-MW capacity. However, this shift cannot guarantee the increase in capacity, given that the last performance test of the plant using liquid fuel was conducted 13 years ago, and the effect of plant degradation and changes in ambient temperature....,” Ledesma explained. Moreover, Ledesma pointed out that, should the shift to pure diesel proceed, the following activities would require around six months to complete, which will extend beyond March 2015: liquid operation of Ilijan for three days to consume the current biodiesel inventory; cleaning of the fuel tanks to be undertaken by plant operator Kepco Ilijan Corp. (Keilco); PSALM’s procurement of contractor for removal of sludge, actual removal and sale; preparation of the gas turbines for pure diesel operation; and PSALM’s procurement of 60 million liters of pure diesel. There is also a need to conduct a pure diesel tuning, stability operation and performance test, which will take at least eight days. Hence, PSALM recommends the continued

use of biodiesel for Ilijan to ensure continuous power supply during the 2015 Malampaya shutdown,” Ledesma added. Ilijan’s usable liquid-fuel storage of about 30 million liters is good for five days at 1,200 MW, and about thirteen days at 420 MW. Based on the limitation of the jetty and fuel-storage facility, PSALM’s simulation results show that, beginning with full storage tanks inventory and fuel deliveries through barges during operation, the plant can sustain 25 days liquid operation of one unit. The plant will need to be shut down for five days to be able to clean combustor fuel nozzle and fuel oil system in preparation for natural-gas firing operation. The Ilijan plant in Batangas, is under a Build-Operate-Transfer contract with Keilco. Through PSALM, the government is responsible for the plant’s fuel supply based on the Energy Conversion Agreement (ECA) with Keilco. Under the ECA, Keilco shall make its best effort to synchronize Ilijan’s maintenance with the Malampaya shutdown.

KMP presses COA audit of P246-B coco-levy fund By Marvyn N. Benaning

he Kilusang Magbubukid ng Pilipinas (KMP) and the claimants movement Coco Levy Fund Ibalik sa Amin (CLAIM) have demanded that the Commission on Audit (COA) subject the P246-billion coco-levy funds to full audit. KMP Chairman Rafael Mariano said that “Since the Supreme Court [SC] declared the coco-levy funds as public funds in December 2001, no public auditing has been done on the small coconut farmers’ money.” “We strongly doubt that Aquino and his finance managers are already spending the multibillion coconutlevy funds’ interests and dividends à la intelligence fund that is concealed from public scrutiny. A no-holdsbarred auditing of the coconut-levy funds is politically necessary, especially in light of the left-and-right issues of corruption and plunder under the Aquinogovernment,”Marianoargued. He added that the Office of the Solicitor General’s filing of a motion for entry of judgment before the SC on Thursday not only seeks to lift a legal impediment or return the funds to small coconut farmers, but for Aquino to dip his hands on the 753, 843,312 shares in San Miguel Corp. (SMC.) “It’s aimed to legitimize the administration’s current illegal spending of the coco-levy funds,” the KMP said. The 753,843,312 shares in SMC, now estimated to have reached P100 billion, was remitted by the Presidential Commission on Good Government (PCGG) to the Bureau of the Treasury (BTr) in October 2012. Citing estimates from research think-tank Ibon Foundation, the KMP and CLAIM said the coco-levy funds and assets are currently valued at P246.8 billion. The P246.8 billion is composed of the six coconut oil mills (P34.8-billion), the 10 copra trading corporations, the Coconut Industry Investment Fund (CIIF) shares remitted to the BTr (P100 billion), the SMC shares being claimed by Eduardo “Danding” Cojuangco Jr. (P84.6 billion), the United Coconut Chemicals (P2.4 billion), Trading Company-UCPI-France (P1.1 billion), Cocolife (P1.5 billion), Barging Company-IBEC (P200 million), the United Coconut Planters Bank (P13.7 billion) and Cocofed (P8.4 billion.) For his part, CLAIM Spokesman Nestor Villanueva assailed President

Aquino’s plan to issue an executive order on the coco-levy funds as highly unacceptable to small coconut farmers. “Through an executive order, Aquino will have the exclusive authority to dip his hands on the coco-levy funds,” he warned. “Under the guise of a so-called small coconut farmers’ clamor, with an executive order, Aquino will arbitrarily bestow upon himself the authority over the coco-levy funds and assets,” Villanueva said. Instead of an executive order, the KMP and CLAIM are pushing for the approval of a legislative measure, House Bill (HB) 1327, or the proposed creation of the “Genuine Small Coconut Farmers Fund,” authored by Anakpawis Party-list Rep. Fernando Hicap. The two groups said that, under HB 1327, small coconut farmers will be the primary beneficiaries of the fund “in the form of cash and other social benefits including, but not limited to, pension benefits, medical and hospitalization benefits, maternity benefits and educational assistance, including scholarships.” “Cash distribution will be in the form of social benefits. This is not a dole-out and a far cry from the corruption-ridden conditional cash transfer (CCT) program of the Aquino administration,” Villanueva said. Under HB 1327, “socio-economic projects initiated by small coconut farmers and their organizations and/ or cooperatives financed by the Coconut Farmers’ Fund shall primarily focus on livelihood programs and projects meant to provide additional incomes to small coconut farmers; small and medium-scale coconut enterprises, marketing and trading mechanisms, inventions and innovations of machineries and equipment for the development of high-quality coconut and improvement of local coconut production; and programs that would provide loan facilities for small coconut farmers.” “All coco-levy funds acquired assets, investments and corporations shall be turned over to the Small Coconut Farmers Council [SCFC]. The SCFC shall directly manage the operations of the CIIF-Oil Mills Group, 14 Holding Companies, United Coconut Planters’ Bank, Cocolife and other corporations acquired through the coco levy funds for the benefit of small coconut farmers,” he said.

briefs

40K students expected to join QC ‘Indakan’ on Oct. 19

An estimated 40,000 high-school students will welcome city residents in their colorful attire and dancing in the street on October 19 as part of the celebrations of Quezon City’s (QC) 75th anniversary. Dubbed as “Indakan ng mga Estudyante sa QC,” students from different public high schools will march from Araneta Avenue to Amoranto Sports Complex to showcase their talents in dancing with their chosen dance tune as early as 6 a.m. The event is a continuation of fun and spectacular activities prepared by the QC government in a one-year celebration of the city’s Diamond Jubilee. Secretary to the Mayor Tadeo M. Palma said the “Indakan ng mga Estudyante” can be another entry of QC to the Guinness World Record aside from the Zumba attempt. “The student’s street dancing this Sunday is also a good event that we could try for the Guinness World Records, where our city may be known,” Palma said. On October 12 the city has attempted to break the record of India in the Zumba category. However, due to the rain that resulted in technical problems, the city’s attempt will be moved to the summer of 2015. Other events lined up for the celebration of the QC Jubilee are the Novaliches Got Talent (October 24); Children’s Bridge to the Future: Books and Libraries (from October 27 to 30); International Film Festival (from November 5 to 11); Quezon City International Night Marathon (November 29); Lights and Sounds Show (November 29); International Pink Film Festival (from December 9 to 15); and QC LGBT Grand Pride March (December 13).

POEA eases O.E.C. processing through online system for returning OFWs

Work force productivity convention International Labor Organization (ILO) Enterprise and Management Specialist

Charles Bodwell (left) shares his presentation on succeeding in business through work force cooperation with Gawad Kalinga Enchanted Farm Cofounder and Business Development Head Shanonraj Khadka with his presentation on Innovation and Character Building during the 2014 National Productivity Convention in Pasay City. ALYSA SALEN

SBMA net operating income hits P965 million

By Henry Empeño

UBIC BAY FREEPORT—The Subic Bay Metropolitan Authority (SBMA) is poised this year to surpass last year’s record-breaking P1.2-billion net profit, as it secured a P965-million net operating income as of August. SBMA Chairman Roberto Garcia said the agency’s operating revenue this year increased by 21 per cent to P1.57 billion, thus leaving a P965-million net operating income after deducting operating expenses worth P607 million.

“The good news is that our operating revenue, which is really the measure oftheefficiency and effectiveness of the strategic initiative that we have launched, has gone up, raising our net operating income by 66 percent,” Garcia noted. He added that the SBMA’s fiscal performance “continues to be very strong” and that the agency is confident that its 2014 income would exceed last year’s profits. SBMA records indicated that the August 2014 figure for operating income represented a 66-percent increase over

the P580-million net operating income recorded in the same period last year. Garcia said the 66-percent increase in net operating income was derived from the P385-million increase this year on top of last year’s P580 million. “This means 66 per cent more spending power and fiscal flexibility in our financial management efforts,” the SBMA official also said. As of August last year, SBMA’s operating revenue stood at P1.3 billion, while operating expenses totaled P720 million, thus resulting in a P580-million net operating income.

With the newest online system of the Philippine Overseas Employment Administration (POEA) called the BM Online or the Balik-Manggagawa Online processing, returning overseas Filipino workers (OFWs) can easily get their Overseas Employment Certificate (OEC) instead of lining up at the POEA office and its processing centers. According to POEA Administrator Hans Leo Cacdac, the online system aims to ease up the process, get rid of the queues and provide convenience to returning OFWs. “With the new system, a returning OFW can now apply online for the OEC and have the approved OEC printed by him/her anywhere, anytime. With the existing database sharing with the Bureau of Immigration, the updated information of OFWs who have successfully secured their OEC using the system will be automatically shared with the Bureau. This facilitates the validation by the immigration officers at the airport of the OEC being presented by the bearer,” Cacdac said. The BM Online is only available for workers on vacation, rehired or returning to the same employer, and with existing record in the POEA database. A returning worker who does not fall to the said criteria will be redirected to the BM appointment page for regular processing of OEC on a chosen date and time and preferred processing site of the worker. A worker who will be using BM Online will have to pay an amount of Php 100 for processing fee and Php 19.50 for e-payment service fee. BM Online can be accessed through bmonline.poea.gov.ph and also on the POEA web site. PNA

DPWH aims to complete P1.4-B Donsol road projects in 2016 By Lorenz S. Marasigan

WO tourism road projects in Sorsogon, amounting to P1.4 billion, will be completed by the time President Aquino steps down from office in 2016, a Cabinet official said. Public Works and Highways Secretary Rogelio L. Singson said his agency is stepping up efforts to complete the road ventures in two years’ time. “The DPWH [Department of Public Works and Highways] is currently working on two tourism road projects

that will further boost the tourism potential of Donsol, Sorsogon, the ‘Whale Shark Capital of the World’,” he said. “The implementation of tourism road projects heading to Donsol, which has a combined cost of P1.4 billion is expected to be finished in the year 2016.” The road project is part of the DPWH’s convergence program with the Department of Tourism (DOT) under the agency’s Tourism Master Plan to provide access to designated tourism destination.

The P769.2-million Pioduran-Donsol-Sta. Cruz Road project involves the improvement of 26.5-kilometer road, starting from Barangay Brororan, Donsol, in Sorsogon to the junction of Ligao-Pioduran Road at the Poblacion of Pioduran, Albay; and construction of two bridges with a total length of 59.10 lineal meters. The other ongoing project, which commenced in 2013, is the P700-million improvement of 24.9-kilometer Guinobatan-Jovelar-Donsol Road. Singson said these two road proj-

ects were designed to have 6.7 meters of pavement width and thickness of 230 millimeters of concrete. When completed, the PioduranDonsol-Santa Cruz Road and Guinobatan-Jovelar-Donsol Road would facilitate growth to the already booming tourism of Sorsogon, enabling tourists to travel with ease. Aside from the whale shark sanctuary in Donsol, the province of Sorsogon also attracts tourists with its pristine beaches, unexplored caves, waterfalls and natural parks.

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Saturday, October 18, 2014 A5

Until Piatco is paid P16B in just compensation held in escrow account

Govt can’t claim ownership of Naia 3 NGCP switches on 230-kV line to boost power in Mindanao

N anticipation of load growth in Mindanao, the National Grid Corp. of the Philippines (NGCP) recently energized a 230-kilovolt (kV) transmission line, which will loop Northern and Southern Mindanao. The 213-circuit kilometer-long line from Villanueva, Misamis Oriental to Maramag, Bukidnon, is part of the second stage of the new Mindanao 230-kV Transmission Backbone Project. Known as the Kirahon-Maramag 230-kV line, the high-voltage transmission facility provides a vital link between North Mindanao, where existing power plants are, and South Mindanao, where the load or demand is expected to rise. The Mindanao Backbone Project intends to increase NGCP’s transmission capacity in Mindanao from 138 kV to 230 kV, thereby providing additional corridor for the transmission of power supply from the Agus and Pulangi hydro facilities, which accounts for the bulk of power supply in Mindanao. “The southern part of Mindanao, particularly the Soccsksargen [South Cotabato, Cotabato, Sultan Kudarat, Sarangani and General Santos] area and Davao, is the load center of the island since it is also a center for commerce. NGCP needs to ensure that the power generated from the north is transmitted reliably to Soccsksargen and Davao, especially during summer season. The Kirahon-Maramag line and the new Mindanao Transmission Backbone will ensure that the supply is fully dispatched to meet the demand in the south,” NGCP President and CEO Henry Sy Jr said. According to NGCP, the southeast and southwest areas of Mindanao comprise 49 percent of the whole Mindanao power demand. This further highlights the necessity to increase the transmission capacity from north to south through the Mindanao Transmission Backbone Project. The Kirahon-Maramag line, with an estimate cost of P988 million traverses two provinces and eight municipalities. NGCP is a privately owned corporation in charge of operating, maintaining and developing the country’s power grid. It transmits high-voltage electricity through “power superhighways” that include the interconnected system of transmission lines, towers, substations and related assets. The consortium holds the 25year concession contract to operate the country’s power-transmission network and is comprised of Monte Oro Grid Resources Corp., led by Sy; Calaca High Power Corp., led by Robert Coyiuto Jr.; and the State Grid Corp. of China as technical partner. Lenie Lectura

By Joel R. San Juan

HE Court of Appeals (CA) has ruled that the government cannot exercise full ownership over the Ninoy Aquino International Airport Terminal 3 (Naia 3) unless it releases from escrow account the P16 billion in just compensation earlier awarded to its builder, the Philippine International Air Terminals Co. Inc. (Piatco).

In a 21-page ruling penned by Associate Justice Franchito Diamante, the CA’s Special Thirteenth Division held that the Regional Trial Court (RTC) in Pasay City “gravely abused its discretion” in allowing the government to deposit in escrow account the amount of $371.43 million, or P16 billion, and imposing conditions for its release to Piatco. The CA granted the petition filed by Piatco seeking to nullify and set aside the omnibus orders issued by Pasay RTC Branch 117 Presiding Judge Eugenio de la Cruz dated October 11, 2011. The said omnibus order was issued pursuant to the decision dated May 23, 2011, of the RTC in Pasay City ordering the government to pay Piatco just compensation in the

amount of $175,787,245. The omnibus order mandated the said amount be placed in escrow and imposed several conditions before the amount could be released to the petitioner. “Accordingly, its ruling that the Republic may exercise full rights of ownership over the Terminal 3 facilities upon payment of just compensation in an escrow account is, likewise, void,” the CA said. It noted that the amount of just compensation is still the subject of appeal before the Supreme Court, thus, it was wrong for the RTC in Pasay City to declare that the government can now exercise full ownership of the airport facilities by mere deposit of just compensation to an escrow account. “Such is not sanctioned by law

nor supported by jurisprudence,” the CA ruled. Among the conditions imposed by the RTC in Pasay City are: Piatco must submit a warranty that the structures and facilities of Naia Terminal 3 are free from all liens and encumbrances; Piatco must submit an undertaking that it is assuming sole responsibility for any claims from third persons arising from or relating to the design or construction of any structure or facility of Naia structures, if any; and that Piatco must submit a duly executed deed transferring the title of the Naia 3 structures and facilities to the government, without prejudice to the amount, which will finally be awarded to it by the appellate court. In reversing the RTC in Pasay’s ruling, the appellate court held that the omnibus order violates the law and Supreme Court rulings on expropriation proceedings. It noted in the case of Tongonan Holdings and Development Corp. v. Atty. Francisco Escano Jr., the SC ruled that any delay in the payment of just compensation is tantamount to a deprivation of one’s property. In the case of Naia 3, the CA pointed out the issue of ownership over the Terminal 3 facilities has long been established by the Supreme Court in several cases where it ruled that Piatco is the owner of the Terminal 3 facilities. The CA added that the RTC in Pasay itself recognized such fact in its omnibus order, thus, ordered the government to pay only Piatco in its May 23, 2011, decision.

“Besides, we agree with Piatco that deposit of just compensation in an escrow account does not constitute ‘payment’ that would extinguish an obligation as contemplated in the Civil Code and other relevant laws,” the CA ruled. “Taking into consideration the nature of expropriation proceedings where the property owner was simply forced to part with its property, with more reason that payment to him should be immediate and without delay,” it added. Furthermore, the CA said the conditions imposed by the RTC in Pasay makes it legally impossible for Piatco to get the just compensation. It cited, for instance, the third condition requiring Piatco to submit a deed transferring title of the Terminal 3 facilities to the government without prejudice to the final amounts, which will be finally awarded to it by the CA. But, the CA said, the ownership may only transfer to the government and subsequent registration of the property may be made when the decision in the expropriation becomes final and executory pursuant to the implementing rules and regulations of Republic Act 8974, the law that governs right-of-way acquisition for national government projects. “Thus, requiring Piatco to execute a deed when the case is actually an expropriation proceeding where there is forced taking of property for public use, is altogether inconsistent with the nature thereof,” the CA said. The CA also held that the claim for compensation of Takenaka and

Cebu’s P10.6-B BRT among priority projects listed in 2015 budget bill–DBM exec

entrepreneurship Forum Sen. Cynthia A. Villar cites the importance of entrepreneurship as a tool to beat poverty. In a speech delivered during the

Simbayanan ni Maria Multipurpose Cooperative’s 2nd Simbayanan Entrepreneurship Forum, with the theme “Go Negosyo Pag Koop ang Kasosyo,” in Taguig City, Villar also underscored the significant contributions of cooperatives in creating jobs and livelihood.

DOTC hopeful of Neda Board approval of P135-B Makati subway proposal By Lorenz S. Marasigan

he Department of Transportation and Communications (DOTC) hopes that the National Economic and Development Authority (Neda) Board will approve the P135-billion mass-transit system project before the year ends. Transportation Secretary Joseph Emilio A. Abaya said he is bullish on the prospect of constructing the first subway in the Philippines, despite the need to negotiate with the Manila Golf Club for the easement of the transport system. “Hopefully, within the year we could go up to the Neda for the approval of the project,” he said. “It is a viable project and we want to pursue it.” There are two options in constructing the subway, either below the 32nd Avenue or the 26th Avenue in Bonifacio Global City (BGC). The latter is a better option, Abaya said, as it passes through McKinley and Ayala. However,

Asahikosan corporations in the amount of $85.7 million pursuant to the orders of a London court does not warrant the deposit to escrow account of the compensation intended for Piatco. The CA said the claim of Takenaka and Asahikosan is still premature and the London court decision is not yet binding as the same is currently pending before the Supreme Court. “Respondents-in-intervention cannot seek the execution of a foreign court decision that has not yet been recognized, because under the Rules of Court, only final and executory judgments may be the subject of execution,” the CA ruled. In its petition filed before the CA, Piatco insisted that the omnibus order and the ruling of the RTC in Pasay had already been overturned pursuant to the amended decision dated August 22, 2013, rendered by the CA’s Third Division, modifying the May 23, 2011, decision of the RTC in Pasay. The modified decision fixed the just compensation for Piatco at $300,206,639 less $59,438,604 paid in September, or the net sum of $240,786,035 with legal interest at 6 percent. Thus, it ordered the government to pay Piatco just compensation, which has reached $4371,426,688.24 as of July 31, 2013. It contends that since the amended decision orders direct payment to Piatco and did not impose any condition for the release of the just compensation, the omnibus order has lost basis, and had been rendered moot and academic.

the mass-transit system will have to pass through the premises of the Manila Golf Club, thus the need for a compromise agreement. Should the Manila Golf Club, whose property might be affected by the construction of the subway system, refuse to enter into a compromise deal, the transport chief simply replied: “We will have to expropriate underneath.” “Hopefully, they would understand that this is a much-needed infrastructure in Metro Manila,” Abaya added. The Mass Transit System Loop will connect the fast-developing Bonifacio Global City, Makati Central Business District and the Mall of Asia area in Pasay City. It will improve intercity linkage by providing a higher-capacity publictransportation system that would provide fast and convenient mobility of goods and services. The mass-transit project also intends to address the high volume of vehicular traffic traversing in these major business districts.

The 12-kilometer railway line will have 11 stations: two are elevated, five are underground and four are interchanges. The project is one of the key infrastructure deals of the Aquino administration, which aims to sign at least 15 contracts before President Aquino bows out in 2016. The government has awarded eight publicprivate partnership (PPP) contracts since the flagship infrastructure program was launched in late-2010, involving: n P1.96-billion Daang Hari-South Luzon Expressway project bagged by Ayala Corp. in 2011; n P16.42-billion first phase of the PPP School Infrastructure Program (PSIP), which went in 2012 to the consortium formed by Megawide Construction Corp. and Citicore Holdings Investment Inc., as well as the BF Corp.Riverbanks Development Corp. consortium; n P15.68-billion Ninoy Aquino International Airport expressway, given to San Miguel

Corp. unit Vertex Tollways Development Inc. in 2013; and n P3.86-billion PSIP Phase II contract, partially awarded last year to Megawide and the BSP & Co. Inc.-Vicente T. Lao Construction consortium; n P5.69-billion Modernization of the Philippine Orthopedic Center project that went to the Megawide-World Citi Inc. consortium also last year. n P1.72-billion Automatic Fare Collection System contract awarded to the AF Consortium of Ayala and Metro Pacific Investments Corp. (MPIC) in January; n P17.5-billion Mactan Cebu International Airport New Passenger Terminal project bagged in April by Megawide Construction Corp. and GMR Infrastructures Ltd.; and n P64.9-billion Light Rail Transit Line 1 Cavite Extension deal awarded in September to Light Rail Manila Consortium of Ayala and MPIC.

he P10.6-billion Cebu City Bus Rapid Transit (BRT) System project is among the priorities listed by the Department of Budget and Management (DBM) under the national expenditure program and budget priorities for 2015. Budget Undersecretary Luz Cantor has presented the proposed 2015 budget on the first day of the two-day “Good Governance Dialogues” on Thursday in Cebu City, attended by various local government units in the Visayas, national government agencies, civil-society organizations, business groups, international development partners and academe. The Visayas region got a total share of P229 billion out of the P2.6-trillion proposed national budget next year. Of the amount, P30.5 billion was earmarked for various public health-care programs in 44 poorest and most vulnerable provinces. Cebu got the highest allocation of P1.8 billion for healthcare programs. The DBM said that while Cebu is considered to be among the most prosperous provinces in the country. The city also has the highest number of poor families at 151,425 in 2012. The P1.8 billion will be used for subsidizing the health insurance premiums of more than 500,000 residents, construct 122 barangay health stations and build or improve other healthcare facilities, deploy 543 health-care workers and construct six potable-water facilities. For the Transport Infrastructure Programs, the Visayas was allocated P227.5 billion, including the P1.3 billion earmarked for the Cebu Bus Rapid System. Infrastructure projects are expected to expand the economy by connecting lagging towns to growth centers; link farms and products to markets; and help bring more jobs and livelihood to people throughout the country. The good-governance dialogue is a series of fora initiated by the government in line with the Philippines’s membership in the Open Government Partnership (OGP), an international initiative aimed at securing concrete commitments from governments to promote transparency, empower citizens, fight corruption, and harness new technologies to strengthen governance. The Philippines was invited to be a founding member of OGP in recognition of the Aquino administration’s commitment to fostering openness and transparency in government. This dialogue series is part of the continuing collaboration between government and non-government partners in promoting and sustaining the good-governance reforms. The dialogues will be conducted in various regions of the country from October to November this year. Budget Secretary Florencio B. Abad has urged local government officials to continue the tremendous reforms and achievement that the current administration reportedly reaped in the last four years. “We have tremendously improved on how this country is being run. We also have to keep in mind that good governance is important in reducing poverty,” Abad said. PNA

Opinion BusinessMirror

A6 Saturday, October 18, 2014

Editor: Alvin I. Dacanay

editorial

Exporting crocodile meat to Russia

N the Old Testament, very specific dietary restrictions were laid down. With the exception of the followers of those religions that still adhere to these restrictions, people have been too busy trying to survive for the last several thousand years to give much thought about them.

Looking back, though, those dietary limitations made a lot of sense. For example, for nomadic tribes in the desert, eating pork could have kept most of them very sick most of the time. Pork needs to be properly and thoroughly cooked soon after the butchering. Also, most of the world must build an immunity to shellfish, for many people are dangerously allergic to it. Even touching, let alone eating, certain frogs and fish can be deadly. It is likely that humans have eaten, and used as a protein source, just about every animal on the planet. Of course, human tastes vary from place to place and from age to age. What is fiesta food in one culture might be considered very offensive in another. The Philippines has some special dishes that foreigners find “unusual”; balut and dinuguan, perhaps, top the list. Even within the country, what might be normal table fare in Mindanao would be considered unacceptable in northern Luzon, and vice versa. We mention this after a report by Alladin S. Diega that was published in this paper on Thursday tells us that a local company, Coral Agri-Ventures Farm Inc. (Cavfi) of Morong town, Rizal province, has been allowed to export Philippine crocodile meat to, of all places, Russia. Overcoming the hurdles involved in exporting such meat required the assistance of the Department of Agriculture. Since crocodile meat is considered exotic, no one was sure what was necessary to get sanitary approval and other clearances. Cavfi already supplies a relatively small amount of frozen and fresh meat to the local market. It also makes crocodile sisig. The fresh meat sells for about P600 per kilo. We are all in favor of trying new dishes, but we must admit that we are not overly excited about Australian ostrich meat that has shown up in some local bars and restaurants in the last few years. But we may have to try crocodile meat, since the exportation of it is contributing to the country’s wealth. It’s too bad that the name “Crocs” is already trademarked for a plastic shoe; Buwaya just does not have the same impact. We will have to work on that.

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Headless chickens again John Mangun

OUTSIDE THE BOX

HE global financial markets have been in chaos since the end of September. There is no other accurate way to describe it. Money has been flowing in and out of asset class and countries at a pace that we have not seen for a long time. Sentiment has been up and down like the mood swings of a crazy person. The New York Stock Exchange Greed and Fear index has been swinging between the two extremes practically on a daily basis. Trading volumes on that exchange have also been going up and down, reaching 2014 highs and lows within the same week. In the last weeks 3-percent to 4-percent daily swings between high and low have happened several times.

Crude oil prices have been down 20 percent since June. There has been a massive move into the United States dollar. The Japanese yen is down 5 percent against the dollar. The euro is off 6 percent and the Australian dollar has fallen 8 percent. The markets have been running around like headless chickens that don’t really have a clue on which direction they want to go. There is a reason for that: The markets do not have a clue on which direction they want to go. That may seem an illogical and silly statement, but sometimes that is what markets do. There is no direction, because there is none.

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least a little, about Christmas sales. The local stock market is down about 4 percent from its recent peak and, here also, trading volumes have been up and down. In times of confusion and uncertainty, the worst possible course of action is to behave like a headless chicken. Moving in and out of the peso to dollars does not make sense, unless you are purchasing things in dollars. The buy/sell spread is high and will overcome any significant gain in peso depreciation. Further, you are now paying so much less for gasoline to more than compensate for going into dollars, unless we are talking about very large amounts of money. Relax. The local stock market is not going to zero. Watch the supports and buy when we bottom out, which could have been yesterday or might happen in a month. The Philippines is still the best place I can think of to store wealth, regardless of whether we are talking about stock-market, government and corporate debt, or investing in a business. If you have a better idea, please let me know. E-mail me at mangun@gmail.com. Visit my website at www.mangunonmarkets.com. Follow me on Twitter at @mangunonmarkets. PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

Positioning the Philippines as a medical-tourism destination Marc Daubenbuechel

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Look at the background to the financial and asset markets. The Middle East is in turmoil again and without a direction. The Islamic State (IS) is at war with the Syrian government. The US is supposedly fighting back against the IS, but, at the same time, it has been encouraging the overthrow of the Syrian government for more than a year. The European Union and the US have imposed somewhat severe economic sanctions on Russia for its role in the crisis in Ukraine. But one of the biggest losers, so far, appears to be Germany, which has been reporting terrible economic data. Other European economies,

such as those of France and Greece, are getting worse, not better. The US economy is supposedly getting better, but fewer Americans are working, and the wealth and wages of the ordinary person there continue to deteriorate. And the world must now deal with the Ebola-virus epidemic that has escaped Africa and reached both Europe and the US, and no one knows what might happen next. Confidence in the US government’s ability to cope with this problem is falling with each new government announcement. It will only take a few more cases in Europe and the US before we see the beginnings of an economic fallout. Already, 50 percent of Americans say they will not travel overseas because of Ebola. Airline stocks have been in freefall in the last few days. While Asia has not reported any confirmed Ebola case, it only takes a few cases to potentially send Asian markets reeling. Here in the Philippines, confidence in the political system and the ability of the government to handle normal problems, like those related to disaster preparedness and transportation, let alone Ebola, are not strong. Here also, foreign money is flowing in and out, not unlike in the rest of the world. Filipinos are being very cautious in moving some peso assets to dollars. As we enter the holiday spending season, some retailers are also being cautious, worrying, at

View from the 19th floor

HO hasn’t seen or heard the term “medical travel” or “medical tourism” in recent years? Hospitals and clinics, physicians, and other medical or health-service providers are looking for the perfect marketing strategy to avail themselves of a piece of the medical-tourism pie. We have read statements about it in the international media, such as “Cost competitiveness and quality health services are one of the major factors that made Asia…the world’s leading market for medical tourism….” But where are the medical tourists? What is their profile? What are their needs and wants? In recent years several organizations, working groups and healthcare providers have been using a shotgun approach in trying to lure in medical tourists (or travelers) to the country, but have we seen them coming in? If you ask me, we have a lot of work to do.

Let’s face it: Manila is not one of the cities you are keen on staying in when you are a tourist. But guess where you will find the highest concentration of quality healthcare treatments? You got it right— Manila. Destination is key. Imagine having a dive in the morning, having your teeth done in the afternoon and enjoying a terrific dinner by the beach in the evening—that is one form of medical tourism. In order for the Philippines to succeed as a medical-tourism destination, we need to understand our prospective clients, and this is where our knowledge is limited.

To widen our horizons (and strategies), we need to listen to international experts and their advice. They have the knowledge we need, which they gained through extensive research, and they can see our country with the eyes of an international medical tourist (or is it traveler?) I recently learned from Elizabeth Ziemba of the US-based Medical Tourism Training Inc. that there is a big difference between a medical tourist and a medical traveler. The former visits the country mainly for tourism and only undergoes minor treatments, such as dental or eye care; the latter travels for complex medical treatment. Get the difference? Two slightly different terms, but they have entirely different marketing strategies. So whom do you want to attract, the medical tourist or the medical traveler? Yes, we have Joint Commission International-accredited hospitals and English-speaking health-care professionals, and, yes, we are known for our hospitality. But are these enough? How do we get our message across and what is our unique selling point, which is crucial in a marketing strategy? If you ask me, our strong com-

petitive advantages are in dental and eye care, executive checkups, rehabilitation, retirement, and care tourism. If you want to know why, ask me or one of our international experts at Retirement & Healthcare: Master Class 2014, to be held at Marriott Hotel Manila on November 5 and 6. Our key speaker for medical tourism (or travel?) is Dr. David Vequist, an accomplished author and researcher on medical and retirement tourism. His topics include opportunities for economic growth and best practices in medical and retirement tourism from around the world. He is the founder and director of the Texas-based Center for Medical Tourism Research, the very first academic center devoted to medicaltourism research. This event is organized by the Retirement & Healthcare Coalition, in partnership with the Department of Tourism and the Philippine Retirement Authority. To register for the Retirement & Healthcare: Master Class 2014, call (632) 845-1324 or e-mail events@rhc. com.ph. For more information, visit the event’s website at www.rhs-asia.com.

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A closer look at the Asean Evangelii Gaudium Security Community plan of action Rev. Fr. Antonio Cecilio T. Pascual

SERVANT LEADER

Cecilio T. Arillo

database First of two parts

ATHER than a defense pact, military alliance or a joint foreign policy, members of the Association of Southeast Asian Nations (Asean)—Brunei Darussalam, Cambodia, Indonesia, Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam—have created the Asean Security Community (ASC) action plan to promote wideranging political and security cooperation in conformity with its 2020 vision, based on three pillars: the ASC, the Asean Economic Community and the Asean Sociocultural Community. These three pillars are to be developed, updated and implemented in a parallel and balanced manner. The ASC action plan, which is expected to be discussed, among others, next month at the 25th Asean Summit in Naypyidaw, Myanmar, is mutually reinforcing with bilateral cooperation between Asean members, while recognizing the sovereign rights of the members to pursue their individual foreign policies and defense arrangements. The ASC is intended to ensure that countries in the region live in peace with one another and with the world at large in a just, democratic and harmonious environment. The ASC would be based on shared norms and rules of good conduct in interstate relations; effective conflict-prevention and -resolution mechanisms; and postconflict peacebuilding activities. In addressing future security challenges, Asean members share the responsibility for strengthening peace, stability and security in the region that is free from foreign military interference in any form or manifestation. Recognizing the strong interconnections among political, economic and social realities, the ASC acknowledges the principle of comprehensive security and commits to address the broad political, economic, social and cultural aspects of building an Asean community. It is also acknowledged that political and social stability, economic prosperity, narrowed development gap, poverty alleviation and reduction of social disparity would constitute a strong foundation for a sustained ASC, given its subscription to the principle of comprehensive security. The ASC process shall be guided by well-established principles of noninterference, consensus-based decision-making, national and regional resilience, respect for national sovereignty, the renunciation of the threat or use of force, and peaceful settlement of differences and disputes that has served as the foundation of Asean cooperation since its inception in 1967. The Asean shall strengthen existing initiatives, launch new ones

and set appropriate implementation frameworks. The Asean shall explore innovative ways to implement the action plan, which is made up of six components: political development, shaping and sharing of norms, conflict prevention, conflict resolution, postconflict peace-building, and implementing mechanisms. A list of areas of activities, which is nonexhaustive, is provided to ensure a coordinated process of cooperation towards an ASC.

Political development

ONE of the main objectives of the ASC, as envisaged in the Bali Concord II, is to bring the Asean’s political and security cooperation to a higher plane. In working toward this objective, Asean members shall promote political development in support of the Asean leaders’ shared vision and common values to achieve peace, stability, democracy and prosperity in the region. This is the highest political commitment that would serve as the basis for Asean political cooperation. In order to better respond to the new dynamics within each Asean member, the organization shall nurture such common sociopolitical values and principles. In this context, each Asean member shall not condone unconstitutional and undemocratic changes in the government or the use of its territory for any action undermining the peace, security and stability of other members.

Shaping and sharing of norms

THE shaping and sharing of norms are aimed at achieving a standard of common adherence to norms of good conduct among members of the Asean community; consolidating and strengthening the Asean’s solidarity, cohesiveness and harmony (the “we feeling”); and contributing to the building of a democratic, tolerant, participatory and transparent community in Southeast Asia. To be concluded next Saturday E-mail: cecilio.arillo@gmail.com.

34th part

Spiritual reading

HERE is one particular way of listening to what the Lord wishes to tell us in His word and of letting ourselves be transformed by the Spirit. It is what we call lectio divina. It consists of reading God’s word in a moment of prayer and allowing it to enlighten and renew us. This prayerful reading of the Bible is not something separate from the study undertaken by the preacher to ascertain the central message of the text; on the contrary, it should begin with that study and then go on to discern how that same message speaks to his own life. The spiritual reading of a text must start with its literal sense. Otherwise, we can easily make the text say what we think is convenient, useful for confirming us in our previous decisions, suited to our own patterns of thought. Ultimately, this would be tantamount to using something sacred for our own benefit and then passing on this confusion to God’s people. We must never forget that, sometimes, “even Satan disguises himself as an angel of light” (2 Corinthians 11:14). In the presence of God, during a recollected reading of the text, it is good to ask, for example: “Lord, what does this text say to me? What is it about

my life that you want to change by this text? What troubles me about this text? Why am I not interested in this? Or, perhaps: What do I find pleasant in this text? What is it about this word that moves me? What attracts me? Why does it attract me?” When we make an effort to listen to the Lord, temptations usually arise. One of them is simply to feel troubled or burdened, and to turn away. Another common temptation is to think about what the text means for other people, and so avoid applying it to our own life. It can also happen that we look for excuses to water down the clear meaning of the text. Or we can wonder if God is demanding too much

The Philadelphia Inquirer

N celebrating our American Revolution, we tend to see it as the simple act of a united people whose happy outcome was virtually assured by our declaration of independence in 1776. For us, it becomes an all-but-inevitable event, rather than a messy and contingent business. This view hinders our ability to understand and relate to the revolutions swirling around us, particularly those in the Arab world. To succeed, all popular democratic revolutions, whether in 18th-century America or the Middle East today, must have two essential stages. First, the rebels must overturn the existing undemocratic order. For the American Revolution, this meant ending British rule, which required seven harsh years of armed conflict. To use the 2011 Libyan

revolution as a modern example from the Arab world, deposing Muammar Qaddafi took nearly a year of active fighting. In both cases, foreign military assistance proved necessary for success, and the fighting caused widespread civilian dislocation. Fearing for their lives and property, thousands of British loyalists fled the advance of patriot armies in America and became permanent refugees overseas, just as thousands fled the rebels in Libya and sought refuge elsewhere. Second, a stable, broadly representative regime must arise to replace the previous tyrannical one. For the United States, this required an additional six years that started with an unstable confederation of increasingly restive states, ran through a Constitutional Convention in Philadelphia and culminated in the inauguration of George Washington in 1789 as the first president under a new federal government. This second phase

of us, asking for a decision that we are not yet prepared to make. This leads many people to stop taking pleasure in the encounter with God’s word; but this would mean forgetting that no one is more patient than God, our Father, that no one is more understanding and willing to wait. He always invites us to take a step forward, but does not demand a full response if we are not yet ready. He simply asks that we sincerely look at our life and present ourselves honestly before Him, and that we be willing to continue to grow, asking from Him what we ourselves cannot, as yet, achieve.

An ear to the people

THE preacher also needs to keep his ear to the people and discover what it is that the faithful need to hear. A preacher has to contemplate the word, but he also has to contemplate his people. In this way, he learns of the aspirations, of riches and limitations, of ways of praying, of loving, of looking at life and the world, which distinguish this or that human gathering, while paying attention to actual people, to using their language, signs and symbols to answering the questions they ask. He needs to be able to link the message of a biblical text to a human situation, to an experience that cries out for the light of God’s word. This interest has nothing to do with shrewdness or calculation; it is profoundly religious and pastoral. Fundamentally, it is a spiritual sensitivity for reading God’s message in events, and this is much more than simply finding something interesting to say. What we

are looking for is what the Lord has to say in this or that particular circumstance. Preparation for preaching, thus, becomes an exercise in evangelical discernment, wherein we strive to recognize—in the light of the Spirit –a call that God causes to resound in the historical situation itself. In this situation, and also through it, God calls the believer. In this effort, we may need to think of some ordinary human experience, such as a joyful reunion, a moment of disappointment, the fear of being alone, compassion for the sufferings of others, uncertainty about the future, concern for a loved one and so forth. But we need to develop a broad and profound sensitivity to what really affects other people’s lives. Let us also keep in mind that we should never respond to questions that nobody asks. Nor is it fitting to talk about the latest news in order to awaken people’s interest; we have television programs for that. It is possible, however, to start with some fact or story so that God’s word can forcefully resound in its call to conversion, worship, commitment to fraternity and service, and so forth. Yet, there will always be some who readily listen to a preacher’s commentaries on current affairs, while not letting themselves be challenged. To be continued For comments, e-mail caritas_manila@ yahoo.com. For donations to Caritas Manila, call (632) 563-9311. For inquiries, call (632) 563-9308 or 563-9298, or fax 563-9306.

Regional trade agreements cannot substitute the multilateral system RTAs continues, liberalizing trade bilaterally or regionally is only a part of the picture.

Roberto Azevedo

Inter press service

ENEVA—Regional trade agreements (RTAs) have grown very rapidly in recent years, and, on October 15, the World Trade Organization (WTO) was notified that 253 are in force.

Clearly, RTA s are not a new phenomenon. In fact, they predate the multilateral system because, in a sense, they were the seeds that grew into the General Agreement on Tariffs and Trade (GATT). Created in 1947, GATT was replaced by the WTO in 1994. GATT was, effectively, a multilateralization of the network of reciprocal trade agreements that countries had been pursuing for some years previously, so the system, as we know it today, has its roots in these agreements. But, of course, things have changed in recent years. These agreements are not only more numerous, but also becoming increasingly complex. While over 80 percent of the RTAs notified are bilateral agreements, we are seeing an increasing number of large regional agreements, and we are also seeing more agreements between countries in different regions, rather than between neighbors. This is very different from the pattern we saw during the GATT years. In addition, we see many more developing countries negotiating RTAs today. This proliferation of agreements, each with their own sets of rules, has been dubbed a “spaghetti bowl,” and I

would certainly agree that we are seeing a significant increase in the level of complexity in the agreements and in their relations with each other. Most RTAs today make deeper and more extensive commitments, and have moved beyond commitments only in the sphere of market access for goods. A question that requires further consideration is how RTA provisions can be complementary to the multilateral trading system. For some issues, such as market access for goods and services, most RTAs grant their partners a higher level of market access than that available through the WTO. For other issues, the picture is less straightforward. Take, for example, RTA provisions on antidumping rules. In general, RTAs do not appear to have gone much further beyond where we are in the WTO today. Meanwhile, for issues such as investment, which is touched on by some RTAs, there are no WTO rules. Another trend that has been noted in the past few years is negotiations that could potentially bring together a number of existing RTAs in so-called megaregional negotiations. While the trend to negotiate new

Fading Arab Spring needs Washington-like leaders By Edward J. Larson

Saturday, October 18, 2014

has, so far, eluded Arab revolutionaries in Libya and elsewhere. They are not alone. Through history, some revolutions, such as the one in 1917 Russia, led to tyrannies worse than those preceding them. Others descended into prolonged chaos, as happened in France during the 1790s and now appears likely in Libya. Looking back, without Washington, either result might have happened here, the former if he had not retired following our first revolution, the latter had he not reemerged in 1787 for what some historians depict as America’s second revolution. Washington stepped down after the Revolutionary War and left the country’s political future to others. Extolled by later historians as the signal event that set the country’s political course, this act was similarly praised at the time. Citing examples from Julius Caesar to Oliver Cromwell, British critics dur-

ing the war had scoffed at Americans for rebelling against one King George only to gain another in George Washington. Successful rebel leaders inevitably become tyrants, they said. Indeed, when expatriate American painter Benjamin West predicted that Washington would retire upon the cessation of hostilities, a skeptical George III reportedly replied, “If he does that, he will be the greatest man in the world.” This story is widely known, so let me focus on the other half of this balancing act: Washington’s role in forming a more perfect union through a second revolutionary intervention. When he retired after the war, Washington hoped for an energetic republic to unite the states and preserve liberty. When this did not happen, he began lobbying for constitutional reform, starting with a widely circulated letter to the states in 1783 and continuing in countless private letters. In 1787 he agreed

Big issues

AS I have said many times, these initiatives are important for the multilateral trading system, but they cannot substitute it. To start with, there are many big issues that can only be tackled in an efficient manner in the multilateral context through the WTO. Trade facilitation was negotiated successfully in the WTO because it makes no economic sense to cut red tape or simplify trade procedures at the border for one or two countries. If you do it for one country, in practical terms you do it for everyone. Financial or telecommunication regulations cannot be efficiently liberalized for just one trade partner, so it is best to negotiate service tradeoffs globally in the WTO. Nor can farming or fishery subsides be tackled in bilateral deals. Disciplines on trade remedies, such as the application of antidumping or countervailing duties, cannot significantly go beyond WTO rules. The simple fact is that very few of the big challenges facing world trade today can be solved outside the global system. They are global problems demanding global solutions. Another important aspect, leaving aside the content of the agreements, is their geographical scope. RTAs tend to exclude the smallest and most vulnerable countries. That is a major source of concern. And, as our economies become more interconnected across borders and regions, RTAs do not—and probably cannot—fully address the gains from trade

to reenter the public stage by presiding over a convention to draft a new federal constitution. It produced a revolutionary document consolidating authority over interstate commerce, foreign affairs, national defense, and taxing and spending for the general welfare in a broadly representative central government. And unlike many of the failing state governments, this new federal one was corralled by checks and balances designed to preserve liberty, protect property and ensure republican rule. Washington then played a key role in securing the ratification of that Constitution and managing the ensuing election of a federalist-minded first Congress to implement it. He, of course, became president. Speaking of Washington’s role in the process, Thomas Jefferson later commented, “The moderation and virtue of a single character probably prevented this revolution from being closed, as

that can be obtained through globalvalue chains. Indeed, the strict, product-specific rules of origin that often accompany RTAs may actually be detrimental to value chains and, therefore, exclusionary for some. The smaller the country, company or trader, the bigger the likelihood that it will be excluded. There is also concern that, by creating different sets of rules, RTAs may be burdensome for traders and business. This is the point of complexity that concerns many. Finally, although these initiatives show that WTO members continue to liberalize trade, fragmentation of the trading system cannot be a substitute for the benefits of negotiating one set of rules for all. Ideally, this is where we should be focused on. But in order to ensure this, one thing we clearly need to do is to deliver on what we agreed during the WTO negotiations in Bali, Indonesia, last December. We are now halfway through an intensive consultation period to resolve the current impasse on this, but, as things stand today, we do not have a solution yet. While this situation persists, I think the risk of disengagement increases exponentially. And this point is underlined by the proliferation of these other approaches. For the sake of the multilateral system, and all those who stand to benefit from it, I think we have to find a solution to our current problems and put our work here at the WTO back on track. And we have to do it quickly. Time is not on our side. Roberto Azevêdo is the directorgeneral of the World Trade Organization.

most others have been, by a subversion of that liberty it was intended to establish.” The fading Arab Spring needs its Washingtons. Nation-building from without may help, but it cannot substitute for transformative domestic leaders. Think of the role that Nelson Mandela played in South Africa or Vaclav Havel in the Czech Republic. Through example, they, like Washington, become models for republican rule. Leaders need to step forward in Libya and the other nations mired in unfinished popular revolutions. With ours having taken so long and been so messy, we cannot expect other revolutions to happen overnight or be painless. But we do know that in the contingent flow of events that becomes history, a few moral leaders can make a lasting difference. Washington was one. Edward J. Larson is the author of The Return of George Washington: 1783–89.

2nd Front Page BusinessMirror

A8 Saturday, October 18, 2014

Neda Board approves ₧303B worth of infra projects for implementation

By Butch Fernandez

HE National Economic and Development Authority (Neda) Board, in a marathon meeting at Malacañang on Friday, approved a total of P303-billion assorted infrastructure projects that President Aquino expects to be completed soon to “lay the groundwork for long-term economic development.” Initial scanty details emerging from the closed-door marathon Neda Board meeting at the Palace disclosed that at least five proposals were among the first batch approved by the body, including four airport projects and the “Manila interchange.” It was learned that six other bigticket projects were also to be approved at the meeting chaired by President Aquino, which started just before noon on Friday. Communications Secretar y

Herminio B. Coloma Jr. later sent an e-mail to reporters detailing a list of projects approved by the Neda Board amounting to P303 billion. But Palace sources said the actual total funding approved by the Neda Board would add up to P307 billion, including “socioeconomic livelihood projects” of the Department of Agriculture (P1.86 billion) and the Department of Agrarian Reform (P2.28 billion). Coloma said these include

projects under the Department of Public Works and Highways listed as Flood Risk Management Project for Cagayan de Oro River, P8.55 billion; Sen. Gil Puyat Avenue/Makati Avenue, Paseo de Roxas vehicle underpass project, P1.27 billion; restoration of damaged bridges along the Bohol Circumferential Road, P0.81 billion; Metro Manila Interchange, P4.01 billion; and Laguna Lakeshore Expressway-Dike Project, P122.81 billion. Approved projects for the Department of Transportation and Communications include the Iloilo Airport operations, maintenance and development project, P30.40 billion; Bacolod Airport operations, maintenance and development project, P20.26 billion; Davao Airport operations, maintenance and development project, P40.57 billion; Puerto Princesa Airport operations, maintenance and development project, P5.23 billion; and Davao Sasa Port Modernization project, P18.99 billion. For the Department of Justice, the Neda Board approved a public-private partnership project for regional prison facilities costing P50.18 billion. According to Coloma, President Aquino also directed the Cabinet and Neda Board members “to focus on completing similar ongoing projects and on laying the groundwork for sustainable, long-term economic development and inclusive growth.”

PHL seen to save ₧758 billion from lower auto-import bill By Catherine N. Pillas

HE country can save over a fiveyear period as much as P757.8 billion ($16.84 billion at P44.92/ dollar in 2013) in its import bill due to reduced vehicle imports if the proposed Comprehensive Automotive Resurgence Strategy (CARS) Program is implemented. The said program envisions the savings from imports to be hinged on an

assumption that domestic production to imports ratio would hit 4:1 by the year 2022. “There will be a huge reduction in foreign-exchange requirements resulting from reduced completely built units [CBU] imports, around P757.8 billion,” Assistant Secretary for the Industry Development Group Rafaelita Aldaba said. But Aldaba said the figures, in her presentation during a briefing on the

trade and industry development (TID) updates, are only an assumption and overly optimistic. While the Department of Trade and Industry (DTI) updates centered on the employment potential of the automotive industry, Aldaba also revealed the projected benefits of the trade office’s auto program in boosting domestic production against vehicle importations from countries with a See “Auto,” A2

BSP: ‘BETTER’INFLATION NUMBERS SEEN AHEAD By Bianca Cuaresma

NFLATION, or the rate of change in prices, will likely be better behaved in the final three months of the year as risks to higher prices dissipate, according to the Bangko Sentral ng Pilipinas (BSP). BSP Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo said inflation likely already peaked some months prior, and that “better” price outcomes are expected in the waning months of the year. “Better compared to the highs. In other words, it looks like inflation has peaked. At least on the basis of our preliminary forecasts,” Guinigundo said. The highest inflation outcome was sustained in the months of July and August, when this averaged 4.9 percent. This was the highest in three years. In September inflation eased to 4.4 percent on the back of lower food and oil prices. This allowed inflation to average 4.4 percent in the first nine months, clearly within the government’s target range of 4 percent to 5 percent and slightly below the central bank’s latest 2014 inflation forecast of 4.5 percent. “At this point, because of the significant improvement, the easing of upside risks like port congestion and oil prices, and all other things being equal, we should be able to see a more favorable impact on the inflation path in the last three months of the year,” Guinigundo said. The central bank, however, remained very vigilant, saying that upside risks to inflation remain, mostly from the proposed upward adjustments in power rates. “I think it is also important that we continue to work on the supply chain, particularly on port congestion. I hope that more significant improvements are seen in that area because there are still a lot of challenges there,” Guinigundo said. He also said that latest assessments do not include the possibility of an intense natural calamity, such as earthquakes and super typhoons with the intensity similar to that of Supertyphoon Yolanda. “That means the unforeseen events are not there but if they are resurrected, then definitely there will be an impact on the inflation outlook,” Guinigundo said. Asked on the impact of this to the upcoming monetary policy decision of the Monetary Board next week, Guinigundo said the Monetary Board (MB) is keeping a good eye trained on the macroeconomic landscape that could alter the year’s carefully calibrated monetary-policy settings. “From now until Thursday there could be more announcements and more data that we will have to monitor to make a better judgment at the appropriateness of the monetary-policy stance,” Guinigundo said. The central bank’s seven-man MB will have its seventh ratesetting meeting on October 23. This will be its penultimate monetary-policy meeting for this year. In its previous meeting in September, the MB took an aggressive stance against rising inflation for this year and the year ahead by hiking both the special deposits account rates and overnight policy rates by 25 basis points each. The central bank said this was meant to rein in inflation expectations for next year, averaging 3.8 percent based on the most recent forecast. This approximated the ceiling of the government target, ranging from 2 percent to 4 percent.

BSP exec sees stronger FDI flow if investors look at fundamentals Continued from A1

The central bank official further explained that in some instances, FDI are influenced by market sentiment similar to the sentiment that is influencing foreign portfolio investors to move out of the country. The central bank earlier this month reported that the FDI— or investments placed by global investors in the Philippines with long- term prospects—breached the $4-billion mark to hit $4.008 billion in the first seven months of the year. This exceeded the target of $1 billion. While the deputy governor admitted that the amount of FDI remains comparatively small compared to counterparts in the region, Guinigundo remained confident of bigger FDI inflows in the years ahead.

“FDI continue to be good. There are more inflows from FDI. It is the portfolio investments that become the problem, because these are the footloose capital. Any small change in market sentiment could drive them out of one emerging market in favor of the so-called safe-haven markets,” Guinigundo said. FPI are investments from nonresidents to the Philippines. These are also called “hot” or “speculative” money, as they are more volatile than direct investments as they are easily pulled in and out of the market due to the change of market sentiment. Just this week the central bank reported that the FPI toward the country snapped its five-month net inflow trend to reach a net outflow of $324.12 million in September alone.

www.businessmirror.com.ph

Falling oil prices shake up global economies

EW YORK—A sudden plunge in the price of oil is sending economic and political shockwaves around the world. Oil-exporting countries are bracing for potentially crippling budget shortfalls and importing nations are benefiting from the lowest prices in four years. The global price of oil closed at $84.47 per barrel on Thursday, down about $31, or 27 percent, from its high point for the year. Oil consumption globally is 91 million barrels per day. That means the world’s oil producing countries and companies are bringing in as much as $2.8 billion less in revenue every day—and consumers, shippers and airlines are saving a comparable amount on gasoline, diesel and jet fuel. “The problem is that countries get accustomed to a certain level of income, and then spend,” says Edward Chow, a senior fellow at the Center for Strategic and International Studies. “It seems like a windfall at first but when it lasts long enough you get used to it.” The global price of oil was relatively stable for nearly four years, averaging $110 per barrel. Increased production in the US, Canada, Iraq and elsewhere made up for declining supplies in nations such as Iran and Libya and helped meet rising global demand. That delicate balance has been upended by a weaker global economy. Demand is slowing while production, particularly in the US, continues to surge. Consumer-driven economies benefit. For example, drivers in the US are paying $3.16 a gallon on average for gasoline, the lowest average since 2011, giving them more money to spend. “If this drop stays where it is that would effectively be a $600 tax credit to an average American household,” says Ed Morse, global head of commodities research at Citigroup. In general the plunge in prices is good for those who have to buy fuel, and bad for those who sell it. But it has far wider and more complex effects on economies around the globe that are only starting to be felt.

Major exporters

ORGANIZATION of the Petroleum Exporting Countries (Opec) countries and other major exporters will feel the biggest impact. The cashstrapped governments of Russia, Venezuela and Iraq are among the most vulnerable. Oil is cheap to produce in these countries, so they still make money at lower prices. But their government budgets are based on expectations of oil prices of $100 or more. On Tuesday Russian President Vladimir Putin expressed concern that lower oil prices could force the government to cut spending. Researchers at the state-owned Sberbank, Russia’s largest bank, estimate that the country needs an oil price of over $104 per barrel to balance its budget next year. In Venezuela, the government leans heavily on oil revenue to fund spending on housing projects, community organizing and other social programs. Now, oil production is falling at a time when the country desperately needs cash. This month, the analysis firm Stratfor Global estimated that Venezuela needs oil at $110 to continue meeting its obligations. Last week, Venezuelan Foreign Minister Rafael Ramirez called for an emergency Opec meeting to allow member countries cut production to keep prices above $100. Saudi Arabia, the world’s largest exporter and Opec’s most influential member, might not rush to cut production, however, even though it would start running a deficit with oil at $85 per barrel, according to Merrill Lynch. Continued on A2