Businessmirror 10 31 2014

BusinessMirror

three-time rotary club of manila journalism awardee 2006, 2010, 2012

U.N. Media Award 2008

A broader look at today’s business

www.businessmirror.com.ph INSIDE

Back to reality

D

LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

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

Life

Friday, October 31, 2014

T

D1

KRISTEN STEWART IS IN A GOOD PLACE

N

B D F | USA Today

EW YORK—Almost precisely two years ago, Kristen Stewart was hunched in a dark corner of the Tribeca Grand Hotel’s restaurant, sipping a glass of white wine and relentlessly scanning the room. ❖ There was nothing she loathed more than people spotting her, gawping and then pretending it hadn’t happened. On the flip side, she also detested that feeling of being openly stared at, which accompanies most famous people when they’re spotted out doing things like eating or drinking or pumping gas.

And it definitely is part and parcel of being onehalf of the planet’s most notable vampire couples, as was the case when Stewart, 24, headlined the Twilight saga as Bella Swan. Yet, on this sunny, breezy afternoon at the Greenwich Hotel, it all feels like a lifetime ago for Stewart. She still repeatedly glances around the room, but she’s visibly more relaxed, easy, even outgoing in her own way.

“I’m really happy right now, overly happy. I’m definitely not looking furtively—I like to look around at [stuff]. I feel great. I’m not overcoming fear right now,” she says.

Back when she was last working the promotional circuit, she was on the tail-end of the century’s Great Love Triangle, involving her, Robert Pattinson and then-married director Rupert Sanders, whom she’d been spotted kissing. Stewart never discussed what followed: the kind of public flaying usually reserved for wayward politicians, if anyone at all.

During that final Twilight push, Stewart says, “I was scared of so many things. I was not overcompensating but just compensating.”

So she finished her required amount of press, kept her head down and shot seven films back to back. The first one to garner major attention is Camp X-Ray, out in limited release and starring Stewart as a wide-eyed army private assigned to Guantánamo Bay. She has never heard of the German city of Bremen, has never read a Harry Potter book when she’s faced with political prisoners hurling feces at the military personnel. And she comes to understand just how complex the whole war on terror is.

“I’m definitely not one to get on a soapbox about things I care about. You can affect change in other ways. That’s why doing interviews about it is funny for me. Dude, I did a movie. I thought it was a courageous reminder,” she sighs.

“It is not righteous in any way. I was really excited to play an essentially American girl who is so simple.

I thought it was interesting to have this girl, a good person, a sweet person, a positively inclined girl who wants to forget herself and wants to be dignified by something. How do you condemn anyone who wants to serve our country? The denigration of that notion was really interesting.”

After rebuffing the drunk advances of her boss, Stewart’s Amy Cole is trapped in a situation that slips out of her control, with both implied and obvious hostility directed at her. All the while,

she has to be a pro with the condemned, loathed prisoners under her care, one of whom winds up being her friend despite being labeled a threat. As a famous person, has Stewart felt that judged herself?

“Actually, yeah. I never made that connection.

Sure, I feel that. It’s silly. It’s so transparently a projection. It’s so insular. It has nothing to do with me. It’s everyone else’s hang-ups,” she says.

Stewart just wrapped her final film, the futuristic Equals, starring Nicholas Hoult and directed by Like Crazy’s Drake Doremus.

The project, she said, tore her up emotionally and necessitated what she long thought she needed: a break to just be Kristen the person. She won’t read a single script in the coming months.

“I’m taking some time off because I’ve been working for two years. I’m an actor and that’s my art form. And, because I started that so young, I’ve always felt intimidated and insufficient when I think about other forms of art I want to create. I’m going to take so much time off,” she says.

“I’m going to buy a live-work space in downtown LA and I’m going to make some [stuff] with my hands. Literally, I made that decision a few weeks ago. I’m making a short film. I’m making a bunch of [stuff]. I don’t know how I’ll put it out. But I’m not going to hold it so preciously close to me. I write all the time.” The actress has been famously ill at ease in the public eye. She says she’s still weirded out by red carpets, but it’s gotten better, and easier. As for her very vocal group of fans (and haters), Stewart keeps her distance from it—she is not on Twitter or Facebook and has a private friends-only Instagram account. She can’t even fathom shredding her anonymity even further by sharing what she’s eating for dinner, or what movie she just watched.

“What would I tweet about? Who are you talking to? What are you saying? Imagine sitting here right now and thinking, ‘That’s a good thing to say to the world?’” she says, glancing at her phone. “What? I can’t even understand it.” Not that she’s agonizing over it. Or much of anything else, she says.

“Now, I really have no apprehension about anything, which is great. I can get behind all of my creative endeavors more so than ever before.

I’m super happy and challenged and inspired and relaxed,” she says. The fame thing, Stewart says, is what it is.

Dressed today in a white crop top, which she

life

C  D

D1

Dubai vows boom, not bubble The World BusinessMirror

news@businessmirror.com.ph

Friday, October 31, 2014 B3-3

Dubai vows the boom is not bubble this time B J K | Bloomberg

First of two parts

LONGSIDE the Dubai Mall, one of the world’s largest shopping centers, sits an ersatz version of what would be an authentic retail experience in most Persian Gulf cities: an Arab souk.

If, in the evening, you stroll through this air-conditioned, hassle- and haggle-free caricature of a market, staffed mostly by smiling South Asians, you can amble out onto the shores of manmade Burj Khalifa Lake, named after the world’s tallest building, which looms over it.

Here—bumping elbows with a veritable United Nations General Assembly of residents and tourists decked out in everything from dishdashas to Dior—you can gawk at the Dubai Fountain, Bloomberg Markets magazine will report in its December issue.

Every half-hour, an array of computer-choreographed nozzles sends jets of water erupting from the lake’s surface 500 feet into the air, gyrating to Middle Eastern pop one minute and Andrea Bocelli singing “Con Te Partiro” the next.

Awash in fantasia, this metropolis of glass and steel sprouting from the barren sands of the Arabian Peninsula

often seems nothing more than an illusion born of desert heat.

Never was Dubai more miragelike than five years ago, after the global financial crisis crushed what had been a bastion of wealth and growth. House prices plunged as much as 60 percent.

Half of the city’s $582 billion in construction projects were either placed on hold or abandoned, their incomplete steel skeletons left poking from the sand, a 21st-century Ozymandias.

Mechanical ballet

NOW, Dubai is booming again.

To understand why, journey 32 kilometers from the Dubai Mall to a part of the city few tourists ever see.

Here, if you pass through the security gates at Jebel Ali port, you’re treated to another mesmerizing mechanical ballet—one less ephemeral and arguably more important to the city-state’s fate than the Dubai Fountain’s dancing waters.

Towering gantry cranes sidle up to 365-meter-long container ships bound for Mumbai or Singapore or Rotterdam. They delicately pluck containers from the tarmac, hoist them into the air in a single, fluid motion and stack them like children’s blocks onto ship decks.

The port is a crucial pillar in the efforts of Dubai’s ruler, Sheikh Mohammed bin Rashid Al Maktoum, to ensure that this time around, growth rests on a more stable footing: moving away from real estate and leaning instead on trade and shipping as well as finance and tourism.

what it was before the financial crisis, Marios Maratheftis, global head of macro research at Standard Chartered Plc. in Dubai, says the current pace is sustainable.

“We would much prefer 4 [percent] to 5 percent than to see 8 percent,” he says.

Before the financial crisis, creditfueled real-estate speculation was the major driver of Dubai’s economic growth. Today Maratheftis says, it’s hospitality, retail and logistics.

Dubai has profited from its neighbors’ misfortunes.

“The Libyans, the Syrians, the Egyptians, the Iranians: They’re all here,” says Patrick Lord, Dubai-based Middle East managing director at Control Risks Group Holdings Ltd., a political- and business-risk consulting firm. “It’s become the place to come—if not physically, then for their money to come.”

government’s commercial assets; he’s also director general of the Ruler’s Court, which functions as the emir’s advisory council.

No duplicity

HIS first task was to persuade creditors to give Dubai enough time to figure out exactly how much it owed. Lenders were suspicious that Dubai was trying to cover up the extent of its financial woes.

There was no duplicity on Dubai’s part, Al Shaibani says; the city simply couldn’t keep up with its own growth.

“Some banks were concerned we weren’t sharing information,” he says.

“In reality, we didn’t have the information to share.”

After a $10-billion cash injection from its Emirati next-door neighbor, oilrich Abu Dhabi, and a year of tense negotiations with creditors, Dubai World Corp., the holding company that manages much of the Dubai government’s investment portfolio, agreed to restructure $23.5 billion in liabilities in November 2010.

Dubai’s rebound since then has been dramatic. As of late October, the benchmark Dubai Financial Market General Index (DFMGI) was three times higher than its 2009 low, making it among the 10-best-performing stock markets in the world during that time period, according to data compiled by Bloomberg.

Frontier gateway

DUBAI, one of seven principalities that make up the United Arab Emirates, has only minimal oil reserves.

Instead, the city-state has positioned itself as the hinge connecting Asia to the rest of the world, the gateway city for the fast-growing frontier markets of Africa and a safe haven for investors shunning an arc of conflict that stretches from Libya to Afghanistan.

Still, with real-estate prices reaching new highs amid plans for more office towers, more luxury resorts and more gargantuan shopping malls, the question remains: Can Dubai escape the excesses that nearly sank it before?

Mohammed Al Shaibani thinks it can. Sheikh Mohammed enlisted Al Shaibani to help restructure as much as €110 billion ($177 billion) in debt Dubai was left holding in 2009. Al Shaibani, 50, is CEO of Investment Corp. of Dubai, which oversees the

‘Frontline state’

EVEN so, the UAE’s participation in US-led air attacks on Islamic State strongholds in Syria and Iraq may jeopardize Dubai’s haven status.

Christopher Davidson, a researcher at Durham University in the UK who specializes in the Gulf states, says of the UAE: “They are no longer influential neutrals and are instead becoming a frontline state in a war that could engulf the whole region.”

He says, however, that Dubai’s economic model is not in immediate danger.

Setting its sights to the west, Dubai is now looking to profit from Africa’s successes. Once-moribund economies from Ghana to Angola to Kenya have grown

Sustainable growth

GROSS domestic product (GDP) expanded 4.6 percent in 2013, and the government expects it to top 5 percent this year. Although this rate is half

at 5 percent or more a year since 2009, and a rising number of European, US and Asian businesses are putting their African headquarters in Dubai.

“You can’t run Africa out of London or French Africa out of Paris anymore, like it used to be in the old days,” says Fadi Ghandour, the co-founder and vice chairman of Aramex PJSC, a Dubai-based transportation and logistics company with close to $1 billion in annual revenue that has recently begun expanding into Africa.

“Today, there’s a competitor, and it is here in Dubai.”

‘Plug and play’

THE Jebel Ali port is one reason. Dubai’s air connections are another. Stateowned airline Emirates, which started out with two Boeing 727s in 1985, now flies to 140 destinations around the globe, including 24 African cities.

In the first three months of 2014, Dubai International Airport surpassed London’s Heathrow, handling more than 18 million travelers, compared with Heathrow’s 16 million.

An airport currently under construction, the $80-billion Dubai World Central-Al Maktoum International Airport, will have five runways and capacity for 160 million passengers annually when it’s completed sometime between 2020 and 2030.

Ghandour says Dubai is the Middle East’s only “plug-and-play” city. Born in Beirut, Ghandour grew up in Jordan and now splits his time between Amman and Dubai, which he began visiting regularly in the early 1980s. To be concluded

Syria’s three-year conflict roiling the economy B D H The Associated Press

D

AMASCUS, Syria—The middle-aged salesman sat glumly among an array of shorts, khaki leisure suits bedecked with gold belts and dresses with plunging necklines in the ancient Damascus bazaar— luxuries few can afford in today’s Syria.

He, like many traders, lost most of his customers when Syria’s uprising erupted in 2011 against the rule of President Bashar al-Assad, and his new clientele is far poorer: Syrians fleeing the fighting with barely any possessions.

Now, he fears there’s even worse to come, as the US-led bombings of the Islamic State group target the country’s modest oil reserves under the militants’ control, sending oil and diesel prices soaring.

The effect is rippling through the economy, and traders fear they would not be able to absorb the increased costs, pushing them out of business and unraveling yet another key sector of Syrian society, already badly frayed by conflict.

“We are hearing there’s unimaginable prices for the winter,” said the 50-year-old clothing vendor, who gave only his first name Amin, referring to the wholesalers he purchases from. “We have been through struggles before, but not like this.” Like all traders who spoke to the Associated Press, he declined to provide his last name, for fear of being identi-

fied as criticizing the Syrian government.

Earlier this month, the government raised the subsidized price of diesel from 36 cents to 48 cents a liter just before a major Islamic holiday. The price of heating oil went from 73 cents a liter to 85 cents.

The increased prices were tied to the US bombing of small oil wells, tankers and pumping stations under the control of the Islamic State group in the eastern Syrian provinces of Deir al-Zour and Hassakeh, which began in late September.

The militants had been selling the fuel at a cut-rate price—including some $1 billion to the Syrian government—and the proceeds amounted to one of the group’s main sources of income, according to a Mideast-based Western diplomat who spoke on condition of anonymity because he was not authorized to speak to the media.

Syria has modest oil reserves. Before the conflict it was pumping 360,000 barrels a day; since the fighting it has only managed 16,000 barrels, Syria economy expert Abdul-Qader Azouz said. That has made it reliant on exports, and militants selling back the country’s resources.

The knock-on effects of the latest fuel price hike and continued bombings have already impacted the price of bread, yogurt and milk.

The price of a loaf of unsubsidized bread rose to 97 cents from 85 cents—more than

PEOPLE shop in the ancient bazaar known as the Hamidiyeh souq in Damascus, Syria, on Monday. The souq is one of Syria’s chief markets, once packed with tourists and visitors from around the country. Even amid conflict, it’s still an important shopping spot for the country’s working classes but prices here have already quadrupled over the past four years for most products in the market. AP/DIAA HADID four times the 21-cent price tag before the crisis. Milk rose to $1.13 from $1. Before the crisis it was 30 cents.

The prices of other goods are likely to rise in the next few weeks, said traders at the Damascus bazaar, known as the Hamidiyeh Souk, who are an important measure of the economy’s pulse.

One of Syria’s chief markets, it was once packed with tourists and visitors from around the country who shopped in its cavernous maze of arched alleyways and ancient Roman columns, snapping up everything from antiques to wispy lingerie and sweets—a rumble of chaotic crowds and pigeons flying

overhead. Even amid the conflict, it’s still an important shopping spot for the country’s working classes.

Prices have already quadrupled over the past four years for most products in the market.

The printed leisure suit in Amin’s stall cost $6 prewar; now it’s $21. While that appears cheap by Western standards, salaries are low in Syria: Most civil servants and soldiers are paid around $100 a month.

The price tag for a bottle of perfume at another stall was $4.30. Preconflict it was $1.50.

“And at the lower price, we were making a better profit on it,” because of the

increased cost of raw materials, trader Hussam said.

As he spoke, a Syrian government plane flew overhead, followed by the thud of a bomb dropping. Nobody flinched.

On a recent day, the busiest place was Bakdash, a century-old ice cream shop considered to make the finest gelato in Syria. But even here, the shop was only half full after prices quadrupled from 30 cents a cup to $1.20.

Azouz, the Syrian economy expert, said the government was trying to stave off more losses by appealing to Russia for fuel supplies and wheat.

It was also asking Iran for guarantor credit lines of $3 billion for oil products and another $1 billion for other expenses, he said.

Azouz said resources were being diverted to ensure “the steadfastness” of the Syrian army—meaning soldiers had first access to fuel and food—and to cover payments for the families of soldiers killed in the fighting.

The Syrian government has come under fire from its own loyalists for the staggering number of soldiers killed during the conflict, now in its fourth year.

The central bank has also intervened to ensure the Syrian pound doesn’t collapse, a policy, Azouz said, would continue.

Most of Syria’s impoverished have already hit rock bottom. One 20-year-old vendor, Mohammed, who works selling

vegetables to try to cover his family’s $90 monthly rent, said his family was relying on food aid donated by the social ministry.

“It’s beans, sugar and oil,” he said. “We are as you see us,” he added, pointing to his shabby pants and jacket.

Another woman, who said her family was living off her son’s salary as a soldier and her husband’s pension, said they hadn’t bought diesel to heat their home in two years because it had become too expensive.

“We sit under blankets,” said 45-yearold Umm Ahmad. “We don’t know luxuries anymore.”

It wasn’t immediately clear how many Syrian businesses have shut down during the conflict. Some have moved to neighboring Lebanon and Jordan, while others have closed because they were in active battle zones, or because they were bombed into rubble.

But even here, in the relatively safe Hamidiyeh area, about a quarter of the shops were closed.

A handbag trader said he wasn’t sure how much longer he could hold on if prices rose again, badly cutting into profits when sales were already so bad.

“The first year, the second year, those who had good work before the crisis and whose situation was middle class or better—they had a bit of money,” said Firas.

But now, traders were running out of cash to cover their continuous loses.

the world

B3-3

Giants win world series!

C | F, O ,  mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

PAU GASOL scores 21 points and had 11 rebounds in his Chicago debut. AP

GIANTSWINWORLDSERIES! K

B R B The Associated Press

THE GIANTS, A 20-1 LONGSHOT WHEN 2014 ODDS WERE FIRST POSTED A YEAR AGO, WON THEIR EIGHTH TITLE AND THIRD SINCE MOVING FROM NEW YORK TO SAN FRANCISCO AFTER THE 1957 SEASON. THEY ALSO HAVE WON 10 STRAIGHT POSTSEASON ROUNDS, ONE SHY OF THE RECORD SET BY THE NEW YORK YANKEES FROM 1998 TO 2001.

joined Cincinnati’s Rawley Eastwick in 1975 as the only pitchers with at least two wins and a save in a World Series, and the 15-out save set a Series record.

With it all, Bumgarner etched his place in postseason lore among the likes of Christy Mathewson, Babe Ruth, Sandy Koufax, Bob Gibson, Reggie Jackson, Randy Johnson, Curt Schilling and David Ortiz— players whose indelible October performances led their team to titles.

Posey expected Bumgarner to throw three innings, then turn over the game to setup man Sergio Romo and closer Santiago Casilla—who threw four pitches in the entire Series.

“But he just kept rolling,” Posey said. “I mean, it’s unbelievable.” Consecutive sacrifice flies by Michael Morse and Brandon Crawford put the Giants ahead 2-0 on the second against Jeremy Guthrie, but Tim Hudson gave the lead right back in the bottom half on Gordon’s RBI double and Omar Infante’s sacrifice fly.

Morse hit a go-ahead single in the fourth on a 99-mph (160-kph) fastball from reliever Kelvin Herrera to break a 2-2 deadlock, and the Giants eked out a battle of bullpens on a night when both starting pitchers made unusually quick exits.

The Giants became the second National League team with three titles in a five-year span, matching the Saint Louis Cardinals of 1942-1946.

Home teams had won nine straight Game Sevens in the Series since Pittsburgh’s victory at Baltimore in 1979, including the Royals’ 11-0 rout of Saint Louis in 1985. Teams hosting the first two games had won 23 of the last 28 titles, including five in a row. And the Giants had lost all four of their previous World Series

GASOL, BULLS BLOW KNICKS NEW YORK—Pau Gasol scored 21 points and had 11 rebounds in his Chicago debut to help the Bulls spoil Derek Fisher’s first game as a National Basketball Association (NBA) coach by beating the New York Knicks, 104-80, on Wednesday.

Reserve Taj Gibson finished with 22 points to lead the Bulls and Derrick Rose scored 13 points after missing most of the last two seasons. Rose, the former Most Valuable Player, took only seven shots and had five assists in 21 minutes in a game Chicago led by as much as 35.

Rose missed the 20122013 season after tearing his left anterior cruciate ligament in the 2012 playoffs. He returned last season and hit the go-

ahead shot to beat the Knicks on Halloween in Chicago’s home opener, but was lost again for the season when he tore cartilage in the other knee in November.

Carmelo Anthony had 14 points for the Knicks, who won’t have it any easier in the second half of their season-opening, back to back. They visit the Cavaliers, the other Eastern Conference favorite, on Thursday in the first game since LeBron James returned to Cleveland.

Miami’s Chris Bosh had 26 points and 15 rebounds and Norris Cole scored a career-high 23 points after winning Miami’s starting point-guard job as the Heat beat the Washington Wizards, 107-95, to open the post-LeBron James era.

Dwyane Wade added 21 points for Miami, 12 of those down the stretch after he briefly departed with a leg injury. Luol Deng, part of the class assembled this summer after James departed, scored 12 points.

At Boston Rajon Rondo returned from a

pushed to the limit.

But before a pumped-up, blue-and-white-clad crowd of 40,535 that hoped noise and passion could lift the small-market Royals to a title that seemed improbable when Kansas City was languishing two games under .500 in mid-July, the Giants won the second all-wild card World Series, 12 years after losing Game Seven to the Angels in the first.

Hudson and Guthrie combined for 15 outs— matching the fewest by Game Seven starters. Hudson, at 39, became the oldest Game Seven starter. The 35-year-old Guthrie took the loss.

With his shaggy hair making him look every bit a gunslinger, Bumgarner entered to boos in the bottom of the fifth, coated his long arms with rosin and groomed the pocked-up mound with his spikes.

He gave up an opposite-field single to his first batter, Infante, then didn’t allow a runner until the ninth. Bumgarner gave up two hits, struck out four and walked none. He pitched 52 2/3 postseason innings, 4 1/3 more than the previous mark set by Schilling for Arizona in 2001, and finished with 270 innings combined, including the regular season.

“Yeah, it was hopeless,” Royals Manager Ned Yost said. Pence batted .444 in the Series and Sandoval, a free-agent-to-be playing perhaps his last game for the Giants, finished at .429 following a three-hit night.

The Giants, a 20-1 longshot when 2014 odds were first posted a year ago, won their eighth title and third since moving from New York to San Francisco after the 1957 season. They also have won 10 straight postseason rounds, one shy of the record set by the New York Yankees from 1998 to 2001.

broken hand and had 13 points, 12 assists and seven rebounds in the season opener to help the Celtics beat the Brooklyn Nets, 121-105. Kelly Olynyk had 19 points and Jeff Green added 17 for Boston, which opened a 29-point lead at the end of the third quarter and coasted to the win.

Mirza Teletovic had 20 points and six rebounds in 23 minutes off the bench for the Nets. Joe Johnson scored 19 points for Brooklyn, and Deron Williams had 19 points and eight assists.

The Suns beat the Los Angeles Lakers, 119-99, despite Kobe Bryant’s 31 points after Isaiah Thomas scored 23 points in his Phoenix debut and Marcus Morris matched his career high with five three-pointers.

Goran Dragic scored 12 of his 18 points in the third quarter, when the Suns outscored the Lakers 39-24 and led by as many as 29. Phoenix’s Eric Bledsoe had 16 points and nine assists before he drew his second technical foul and was ejected with 30

seconds left in the third quarter.

Bryant, 11 of 25 from the field, didn’t play in the fourth quarter. Ed Davis scored 14 points and Wayne Ellington 13 for Los Angeles. Golden State’s Stephen Curry had 24 points and 10 rebounds as an undermanned Warriors downed the Los Angeles Kings, 95-77, while LaMarcus Aldridge had 27 points as the Portland Trail Blazers rallied in the fourth quarter to beat Oklahoma City, 106-89.

In other games, Kemba Walker made a 21-footer from the top of the key with five seconds left in overtime to lift the Charlotte Hornets past the Milwaukee Bucks, 108106; the Memphis Grizzlies defeated the Minnesota Timberwolves, 105-101; and the Houston Rockets downed the Utah Jazz, 104-93. The Indiana Pacers defeated the Philadelphia 76ers, 103-91; the Toronto Raptors beat the Atlanta Hawks, 109-102; and the Denver Nuggets were 89-79 winners over the Detroit Pistons. AP

sports

c1

of the US economy, it should be positive for the emerging-market economy trading partners of the US, including the Philippines,” Tetangco said in a mobile-phone message to reporters.

“This also takes out one aspect of uncertainty in the market,” he quickly added. “That said, the Fed action gives us some latitude to keep rates steady as our own domestic inflation dynamics is fairly stable and allows previous Continued on A2

Most Rev. Pablo Virgilio S. David (center), DD, auxiliary bishop of San Fernando, receives a plaque of appreciation as the guest of honor and keynote speaker from Ambassador Antonio L. Cabangon Chua (left), chairman and president of the Catholic Mass Media Awards (CMMA); and Luis Antonio G. Cardinal Tagle, DD, CMMA honorary chairman, during the 36th CMMA gala night at the GSIS Theater in Pasay City. ROY DOMINGO

Abaya orders LTFRB to use Uber inputs in modernizing local transport rules

T

BusinessMirror

ANSAS CITY, Missouri—Madison Bumgarner punctuated a World Series performances for the ages by pitching the San Francisco Giants to their third title in five years with a 3-2 win over the Kansas City Royals in Game Seven on Wednesday night. The big left-hander came out of the bullpen to throw five scoreless innings on two days’ rest, saving a Series pushed to the limit. And by winning Game Seven on the road, Bumgarner and the Giants succeeded where no team had in three-and-a-half decades.

“I wasn’t thinking about innings or pitch count.

I was just thinking about getting outs, getting outs, until I couldn’t get them anymore and we needed someone else,” Bumgarner said in a monotone that made it sound as though he was talking about batting practice. A two-out misplay in the ninth almost wrecked it for him.

Bumgarner had retired 14 in a row when Alex Gordon sent a drive to center. Bumgarner pointed his glove in the air, thinking it could be the final out, but the ball fell in front of center fielder Gregor Blanco for a single. Blanco, however, allowed it to roll past him to the wall, and left fielder Juan Perez kicked the ball before throwing to shortstop Brandon Crawford in short left, causing Gordon to hold at third.

“When it got by him, I had a smile on my face. I thought maybe I could score, but he got to it quickly enough,” Gordon said. “I just put my head down and ran, almost fell around second base, was just waiting for Jirsch [third base Coach Mike Jirschele] to give me the signal. It was a good hold, he had the ball in plenty of time.” Blanco hoped for the best.

“We just need one more out. We got this. Let’s do it,” he thought to himself.

Bumgarner, the Series Most Valuable Player, then retired Salvador Perez on a foul out to third baseman Pablo Sandoval near the Giants’ dugout. The 25-yearold ace was immediately embraced by catcher Buster Posey, and the rest of the Giants rushed to the mound to join the victory party.

Most of the San Francisco players tossed their gloves high in the air as they ran to the center of the diamond. “What a warrior he is, and truly incredible what he did throughout the postseason,” Giants Manager Bruce Bochy said. “I just told him I just can’t believe what he accomplished through all this. He’s such a humble guy, and we rode him pretty good.”

Three days after throwing 117 pitches in a four-hit shutout to win Game Five, Bumgarner threw 68 more and dropped his record-low career Series ERA to a barely visible 0.25.

Bumgarner initially was credited with the win. But nearly an hour after the final out, the official scorers awarded it to Jeremy Affeldt, who was in the game when San Francisco took the lead.

Affeldt pitched 2 1/3 innings of scoreless relief in his longest outing since July 2012. He was helped by the first reversal in the Series by expanded instant replay, which gave the Giants a double play on Eric Hosmer’s grounder, which second baseman Joe Panik stopped with a dive and flipped to Crawford with his glove for the relay.

Bumgarner

he Bangko Sentral ng Pilipinas (BSP) hinted broadly on Thursday of more stable interest rates over the next 12 months, its strongest word yet on the direction of short-term interest charges, following the US Federal Reserve (the Fed) decision putting an end to more than five years of monetary and fiscal stimulation.

By Lorenz S. Marasigan

Sports BY winning Game Seven on the road, Madison Bumgarner and the Giants succeeded where no team had in threeand-a-half decades. AP

By Bianca Cuaresma

The US Fed decision, BSP Governor Amando M. Tetangco Jr. said, effectively removed that air of uncertainty hanging over interest charges in the Philippines that have been deliberately kept low to help the $270-billion economy achieve growth, measured as the gross domestic product (GDP), as high as 7 percent this year.

“The Fed’s announcement of the end of taper was widely expected, and to the extent this confirms the underlying strength

THE Dubai Mall WIKIMEDIA COMMONS

A

P25.00 nationwide | 7 sections 32 pages | 7 days a week

‘Fed decision good news for PHL’

ELLEN ADARNA AS CALENDAR GIRL »D4

BusinessMirror

Friday, October 31, 2014 Vol. 10 No. 23

FOMC MOVE TO END BOND-BUYING PROGRAM REMOVES ‘ASPECT OF UNCERTAINTY’ in bsp’s own rate adjustments

Kristen Stewart is in a good place EAR Lord, thank You for a month of vacation filled with unusual happenings that make life thrilling, fulfilling and enriching. But it must end. Coming back to reality is sometimes hard to accept, but if we want to function as normal individuals, we must accept and live the conditions and situations in God’s mercy and love. Amen.

n

ransportation Secretary Joseph Emilio A. Abaya has directed the Land Transportation Franchising and Regulatory Board (LTFRB) to be more considerate in handling the case of carpooling-services provider Uber, saying his agency is looking at amending transport rules to make traveling around Metro Manila safer and more convenient.

The transport chief said his office has instructed LTFRB Chairman Winston M. Ginez to meet with Uber officials to seek inputs on how to revise transport regulations to “facilitate

PESO exchange rates n US 44.7380 n japan 0.4109

convenient, safe and reliable services to the public; not hamper them.”

“I have asked the LTFRB to reach out to Uber, and seek ways to modernize our transportation rules. While the LTFRB was only doing its job in implementing the law, we also have a duty to push for modern solutions to archaic problems,” he said.

The Cabinet official said his agenc y’s role shou ld be “one that is supportive of new approaches to addressing transportation inadequacies.”

“Regulations must keep up with fast-paced technological innovations; and one way to do that is to

amend antiquated laws or policies, which may no longer be responsive to today’s needs,” he added.

The transport chief and officials from the regulatory body will meet with Uber executives “soon” in an effort to modernize the government’s regulatory function over vehicles for public use, in such a way that innovative solutions will be allowed to flourish, without sacrificing safety and security oversight functions.

“We welcome the solutions made possible by technology in helping us meet the public’s needs. At the same time, we recognize the LTFRB for

TAGLE: USE MEDIA TO FOSTER GENUINE HUMAN ENCOUNTER

By David Cagahastian

T

he prestigious Catholic Mass Media Awards (CMMA) honored for the 36th year the distinguished students, professionals and organizations that made use of mass communication in promoting Christian values among Filipinos.

The gala night of the CMMA’s 36th edition, successfully held at the GSIS Financial Center in Pasay City on Wednesday, carried the theme “Communication at the Service of an Authentic Culture of Encounter,” in support of Pope Francis’s message during the World Communications Day on June 1, where he stressed

the importance of human interaction amid the big technological advances in the past years.

“It is our hope that, by embracing this theme for the CMMA, we may encourage our mass-media professionals and institutions to strive to bring about a genuine human encounter and institutions where, in sharing our insights, sentiments and faith convictions, we may support and cooperate with each other in building a world where the Kingdom values of justice and love reign,” said Luis Antonio G. Cardinal Tagle, archbishop of Manila, in his message to the 36th year of the CMMA. Continued on A4

Continued on A2

n UK 71.6390 n HK 5.7673 n CHINA 7.3207 n singapore 35.0227 n australia 39.8025 n EU 56.5399 n SAUDI arabia 11.9260 Source: BSP (30 October 2014)

A2

News BusinessMirror

Friday, October 31, 2014

BOI OKs ₧146B worth of power projects

T

By Catherine N. Pillas

he Board of Investments (BOI) has approved P146.18 billion worth of big-ticket power projects in the first eight months of the year, data obtained from the investment-promotion agency showed.

For the period, six of the 10 biggest investment commitments that the BOI approved were in the energy sector, led by the St. Raphael Power Generation Corp.’s coal-fired power

plant in Balayab and Calaca, Batangas. The project costs P63.2 billion.

St. Raphael Power Generation Corp. is a unit of the Consunji-owned Semirara Mining Corp. It will gener-

ate 410 fresh jobs.

The BOI also approved the grant of incentives to the P50-billion 540-megawatt (MW) coal-fired plant of GNPower Kauswagan Ltd. Co. in Lanao del Norte. It will employ around 304 workers.

The Panay Energy Development Corp.’s 150-MW coal-fired power plant in Iloilo, meanwhile, costs P15.57 billion.

Other power projects in the BOI’s top 10 approved investments from January to August are the Emerging Power Inc.’s 40-MW Montelago Geothermal Project, priced at P8.2 billion.

Prime Meridian Powergen Corp. has registered its 115-MW San Gabriel Avion Natural Gas-fired power plant in Batangas City, which is worth P5.5 billion.

Still on the list is Agusan Power Corp’s 25-MW Lake Mainit Power Plant. The project costs P3.6 billion.

The combined project cost of the six power projects accounts for more than half, or 56.5 percent, of the P258.7-billion approved investments of the BOI in the first eight months of the year.

According to a BOI statement, the P258.7-billion haul in the first eight months of the year reflects a 26-percent drop from the P350.34 billion worth of approved projects in the the same period last year.

The decline, according to Trade Undersecretary Adrian S. Cristobal, was “due to the absence of big-ticket power projects” in 2014.

Cristobal also said it was due to the higher base last year.

Abaya orders LTFRB to use Uber inputs in modernizing local transport rules Continued from A1

sticking to the law and performing its duties without fear or favor. Now government must work together with innovators from the technology industry for the benefit of the people,” Abaya said.

He added that he hopes that these solutions could be integrated with his agency’s taxi-reform program.

The transport chief assured information technology developers that his office will continue to support technology-based solutions for transportation. The agency has

“Regulations must keep up with fast-paced technological innovations; and one way to do that is to amend antiquated laws or policies which may no longer be responsive to today’s needs.” active Open Data efforts to release useful transport information to the public primarily through the webbased platforms.

It has also made possible the creation of more than a dozen tripplanning apps through the Philippine Transit App Challenge. Together

with the LTFRB, the transport agency continues to push for the use of global positioning system and CCTV units, and other technologies to improve the safety, convenience and reliability of public-utility buses and other public-utility vehicles.

The LTFRB earlier announced that

it will go after carpooling services to ensure the legality of their operations.

Fines for those apprehended will range from P120,000 to P200,000, depending on the vehicle type.

Ginez said his office is studying the case, noting that vehicles offering taxi services must also secure the approval of his agency before operating, much like taxis and other public utility vehicles. “We must ensure the safety of our commuters,” he said.

Metro Manila Development Authority Chairman Francis M. Tolentino earlier slammed the LTFRB for its seemingly backwardlooking action against the app.

“Uber, or hybrid carpooling, is a well-meaning technology-driven effort intended for public safety and convenience, which is why people are patronizing it. We cannot curtail their mobility rights,” he said. “This is similar to private bridal cars and private ambulances for rent, which is a private transaction between the rider and the owner of the vehicle.”

news@businessmirror.com.ph

‘Fed decision good news for PHL’ Continued from A1

monetary policy actions to filter through the economy,” Tetangco said further. However, Tetangco also warned the Fed’s use of language indicative of keeping interest rates low for a considerably more time yet could spur speculative market.

“Language that the Fed could keep rates low for a considerable time could still keep market participants on the look out and, therefore, still mean some market volatility before the actual lift happens,” Tetangco said.

“We will remain watchful of market conduct, particularly in the nearterm in the spot foreign exchange market, check for threats of possible excessive moves and if there is need for BSP to act,” he vowed.

The BSP has kept the policy levers frozen at its penultimate policy meeting given prospects of more stable inflation over the policy horizon.

In Washington, International Monetary Fund Managing Director

Christine Lagarde reiterated her call for a “new multilateralism” to overcome a mediocre global recovery and solve problems such as climate change, gender bias and income inequality.

“Many of the challenges we face represent a collective threat, and call for a cooperative response,” Lagarde said Thursday in accepting Foreign Policy magazine’s diplomat of the year award in Washington. “It is only by acting collectively that an individual country’s self-interest can be achieved.”

Lagarde said the global economy is still “struggling to regain cruising speed,” while geopolitical problems in Ukraine and the Middle East compound the difficulties. The IMF is ready to do more to ease the Ebola crisis, she said.

“Challenges like these can only be held at bay—they can only be overcome—through working together,” Lagarde said. “What I am talking about here is a renewed commitment to the global public good.”

Former Sen. Juan Flavier, 79

F

ormer Sen. Juan Flavier died on Thursday due to multiple organ failure caused by pneumonia.

He was 79.

Flavier served as Department of Health (DOH) secretary from 1992 to 1995, and his outstanding performance as Cabinet member and his famous tag as “Mr. Let’s DOH It” earned him public accolade that brought him to the Philippine Senate in the 1995 elections.

As health secretary, Flavier brought with him his rich experience in rural work and introduced innovative approaches to health care, such as “Oplan Alis Disease,” a massive immunization campaign that later resulted to the World Health Organization declaration of the Philippines as poliofree; the Sangkap Pinoy, a nationwide campaign against micronutrient malnutrition; the anti-AIDS (Acute Immune Deficiency Syndrome) health information campaign and other health programs aimed at bringing health closer to the people.

He successfully transformed the DOH

into a dynamic office, making it the No. 1 department in the administration of former President Fidel V. Ramos.

Because of his outstanding performance in the Cabinet, he was asked to join the administration’s ticket in the 1995 elections.

Among the 12 winning candidates, he placed fifth and, as a neophyte senator of the 10th Congress, he endeavored to concentrate on his job as a legislator and thus earned the distinction of having attended the most number of committee hearings, and having incurred no absences from the Senate sessions.

Some of the landmark legislation he authored and sponsored are the traditional medicine law, the poverty alleviation law, Clean Air Act and the Indigenous Peoples’ Rights Act. It was due to his outstanding performance that he was reelected as senator in the 2001 elections, placing Second among the 12 winning candidates.

On the first day of the 12th Congress, he immediately went to work and filed Senate Bills 1 to 166. PNA

news@businessmirror.com.ph

The Nation BusinessMirror

Editor: Dionisio L. Pelayo • Friday, October 31, 2014 A3

House passes resolution extending rights claimants’ application period

T

By Jovee Marie N. dela Cruz

HE House of Representatives has passed on third and final reading a joint resolution extending by six months the period for human-rights victims during martial law to file their claims for recognition and reparation.

House Deputy Speaker Carlos Padilla said the majority of the lawmakers voted unanimously to pass Joint Resolution 16 late Wednesday.

The resolution, which was principally authored by Party-list Reps. Barry Gutierrez and Walden Bello of Akbayan, seeks to move the deadline of filing on November 10 to May next year to cope with the large number of persons seeking for reparation and recognition under Republic Act 10368, or the Human Rights Victims Reparation and Recognition Act of 2013.

“We laud the leadership and members of the House of Representatives who have taken a decisive stand during this very critical moment in bringing justice and redress to the thousands of victims of martial law. We also laud the various human-rights defenders and organizations who have consistently gave their utmost support to the passage of this measure. Through the passage of the resolution extending

Abu bandits release kidnapped girl in Sulu

A

BU Sayyaf bandits released in Sulu on Wednesday the 8-year-old daughter of a rich businessman whom they abducted in July in Zamboanga Sibugay.

The release of the victim came when Defense Secretary Voltaire T. Gazmin and the Armed Forces of the Philippines chief of staff, Gen. Gregorio Pio Catapang, were in Sulu to dialogue with local officials and tell them about efforts that the military is taking to address the peace-and-order problem in the province.

Princess Jewel Mariel Nique, 8, was freed at around 2:30 p.m. on Wednesday at the Jolo Wharf in Sulu, according to the Armed Forces Public Information Office chief, Lt. Col. Harold Cabunoc.

Cabunoc could not say if ransom was paid for the freedom of the victim.

Nique was abducted at around 4:20 p.m. on July 25 by five armed men at Barangay Poblacion, Oluntanga, Zamboanga Sibugay.

Three of the five gunmen barged into the eatery owned by the victim’s family and snatched the victim, while the other two gunmen waited at their motorized banca.

The gunmen forced the victim to board the motorized banca and sped to the high seas.

Elements of the Army’s 44th Infantry Battalion pursued the kidnappers, but lost track of them.

Militia detachments in the coastal areas of Oluntanga and of the other adjoining areas were alerted about the kidnapping, but they have not seen the suspects nor heard about them until the release was made on Wednesday.

Nique is the daughter of James Nique Jr., a prominent businessman in Oluntanga.

Cabunoc said Gazmin and Catapang were in Sulu to personally get developments on the ongoing operations against the Abu Sayyaf in the province.

They were also talking to the local officials in order to solicit their support in ending the atrocities of the local terrorist group in Sulu.

The bandit group has been blamed for the kidnapping of Nique. Rene Acosta

Military eyes disbarment case vs Roque before IBP

T

HE military is considering the possibility of seeking the disbarment of lawyer Harry Roque for his alleged “misbehavior” in Camp Aguinaldo last week.

Lt. Col. Harold Cabunoc, Armed Forces Public Information Office chief, said Gen. Gregorio Pio Catapang, Armed Forces of the Philippines (AFP) chief of staff, is eyeing the filing of a disbarment complaint against Roque, counsel of the family of Jeffrey Laude, who was allegedly killed by a US Marine.

“The CSAFP [chief of staff, AFP] is strongly considering the filing of a formal complaint against him [Roque] before the Integrated Bar of the Philippines [IBP], if warranted,” Cabunoc said.

“The bases for this complaint are his [Roque’s] inappropriate actions inside camp premises during the intrusion incident on October 22,” he added.

On October 22 Roque, along with Laude’s mother Julita, sister Marilou Laude and his fiancé German Marc Sueselbeck, went to Camp Aguinaldo immediately after suspect Pfc. Joseph Scott Pemberton was transferred there.

Marilou and Sueselbeck scaled the perimeter fence of the Mutual Defense BoardSecurity and Engagement Board (MDB-SEB) compound, where Pemberton was detained, in their attempt to see the suspect.

Cabunoc had earlier accused Roque of deception and lying to gain entry into Camp Aguinaldo, the Armed Forces General Headquarters.

Cabunoc said the military leadership hopes that the IBP would act on the Armed Forces’ complaint. “He is a brilliant lawyer who should be an epitome of discipline and respect for law and order. We expect the IBP to take appropriate sanctions like disbarment,” Cabunoc said. Rene Acosta

the deadline of the filing of reparation claims for the human-rights victims, we are giving the victims the full opportunity to get the recognition they deserve for their sacrifices in protecting this nation’s liberties and freedom, especially as they enter their final years,” Gutierrez said.

The lawmaker said the six-month extension was sought to allow the legiti-

mate claimants, especially those living in far-flung areas of the country, full opportunity to file their claims with the Human Rights Victims Claims Board.

The lawmakers said that, as of October, the board has received more than 29,000 claims under the law, while the expected number of claimants is at 55,000 to 90,000.

“With the November deadline fast ap-

proaching, it is evident that the set time frame needs to be expanded to ensure that all victims will be given their proper recognition and compensation, and no victim will be unduly cut off from their rightful claims,” Gutierrez said.

“We are happy, therefore, that the leadership of the House lent its full support, leading to the swift approval of the measure. This is a clear signal that

Congress is serious in its commitment to seeing justice served to the thousands of victims of martial law,” Gutierrez added.

Gutierrez also underscored the importance of the measure in providing redress to the victims of humanrights violations during the imposition of martial law, and “making certain that they take their rightful place in our history.”

Economy

A4 Friday, October 31, 2014 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

Tagle: Use media to foster genuine human encounter. . . continued from a1

The Saint John Paul II Award, given to persons who use modern communication technology, was conferred upon Dennis Murphy, executive director of the Urban Poor Associates, for his work through media to push for the rights of urban poor Filipinos to shelter and land tenure.

The Serviam Award, which was conceived in honor of the late Manila Archbishop Cardinal Sin, was posthumously given to broadcaster June Keithly Castro for her role in the People Power revolution in 1986, which earned her the nickname as the “voice of the People Power revolution.”

This year’s CMMA awardees were chosen from a highly competitive field of 858 entries across all categories. Here are the winners in each of those awards: In the Student Category, for Best Student Organ (grade school)—Luntiang Panulat of La Salle Greenhills; Best Student Organ (high school)—Fortibus of Paref Northfield School for Boys; Best Student Organ (college)—Sensus Communis of Batangas State University and Lavoxa Tabloid of De La Salle Lipa; Best Student Literary Publication— Phoenix of Lyceum of the Philippines University Batangas and Confiteor of Batangas State University (special citation only); Best Student Public Service Print

Ad—“Just” by First Asia Institute of Technology and Humanities; Best Student Short Film—Hakbang by Far Eastern University; and the Student’s Choice Award for Best Picture—Alagwa by Star Cinema, and Pedro Calungsod by Wings Entertainment (special citation).

In the Advertising Category, for Best Print Ad (Branded)—“Banig” by Alaska Milk Corp.; Best Public Service Print Ad—“Help PH” by PDRF and Smart Communications Inc. In the Print Category, for Best Children’s Magazine—JC Kids by Foundation For Christ Love-Asia Inc.; Best Youth Magazine— Word & Life by Word & Life Publications; Best Family-oriented Magazine—World Mission by Comboni Missionaries of the Heart of Jesus and Family Matters by Don Bosco Press Inc. (special citation); Best Local Community/Parish Newspaper— Saint John Bosco Today by Salesian Society of Saint John Bosco-Philippines; Best Short Story—“Oasis of Peace and Faith” by Fr. Dave Dominguez, MCCJ; Best Children’s Short Story—“Yohwel, The Beggar of The Chirstmas Night” by Fr. Armand D. Robleza, SDB; Best News Photograph—“The Right to Vote” by Amper Campaña of Sun Star Cebu; Best Special Feature—“Iwas Dyabetis Type 2 at Huling Yugto ng Pagkasira ng Bato

111 Hakbang…” by Dr. Frances G. SolivenQuebec MD, PhD, and special citations for “You Must Announce from the Housetops”

by Archbishop Thomas Menamparampil, SDB and “Life As It Should Be” by lawyer Alberto Agra; Best Entertainment Column— “Between the Lines” by Fr. Bernard Nolasco, SDB; Best Business Column—“Business Matters” by Francis Kong of The Philippine Star; Best Editorial Cartoon—“The New Pope” by Gilbert Daroy of Philippine Daily Inquirer; Best Comic Story—“Sa Kabila ng Kakulangan” by Ben Gregory Aquino; Best Opinion Column—“Will Soon Flourish” by Wilson Lee Flores of The Philippine Star; Best Investigative Report— “Cordova: Cybersex Capital?” by Rebelander Basilan, Davinci Maru, Gerome Dalipe and Cherry Ann Lim of Sun Star Cebu; Best News Coverage—coverage of Supertyphoon Yolanda by DJ Yap, Nikko Dizon, Marlon Ramos and Maricar Cinco of the Philippine Daily Inquirer.

In the Radio Category, for Best Student Public Service Radio Ad—“Bingo ng Karapatan” by Adamson University; Best Public Service Radio Ad—“Save Lives: AntiAbortion” by Bombo Radyo Philippines; Best Branded Radio Ad—“Picture” by Canon; Best Counseling Program—The Love Clinic of Monster Radio RX 93.1; Best Entertainment

Program—Radyo Balintataw of DZRH 666, and The Law of the Heart is Love of DWBR 104.3 (special citation); Best Business News and Feature— Bombohanay Bigtime by DYMF 963 of Bombo Radyo Cebu; Best Drama Program— Radyo Balintataw of dzRH 666 and OFW ug ang bunga sa pagpaningkamot of DYMF 963 (special citation); Best Educational Program—dzMM Red Alert of dzMM 630, and Sa Kabukiran of dzMM 630 (special citation); Best Public Service Program— Imbestigador sa dzBB by dzBB 594, and Search for the Monster Scholar by Monster Radio RX 93.1 (special citation); Best News Program—Bombo News & Views Morning Edition by dzGR 891 Bombo Radyo Tuguegarao; Best News Commentary— Pasada Sais Trenta by dzMM 630, and Bangon na Bayan by dzBB 594.

In the Music Category, for Best Secular Album—“Hulog ka ng Langit” by Regine Velasquez; Best Secular Song—“Pagbangon”

by Julie Anne San Jose; Best Inspirational Album—“With You” by Gary Valenciano; Best Inspirational Song—“Hulog ka ng Langit” by Regine Velasquez, and “Para sa ‘yo Ama” by Gary Valenciano (special citation); Best Music Video—“Magkasama Tayo sa Kwento ng Pagbangon” by Star Recording Inc. In the Internet Category, for Best Web

news@businessmirror.com.ph

site—www.familyandlifeupdate.com by Couples for Christ Foundation Inc. In the Television Category, for Best Student TV Production—Padayon by Colegio De San Juan De Letran; Best Student Public Service TV Ad—“Tara Na” by Saint Paul College of Parañaque, and “Life Offline”

by De La Salle University (special citation); Best TV Public Service Ad—“Hangad” by Pro-Life Philippines, and “After the Storm”

by ABS-CBN Corp. (special citation); Best Branded TV Ad—“Munting Sakripisyo”

by KFC Buckets of Love, and “Kahati ng Kahapon” by Columbia International Food Products Inc. (special citation); Best Children and Youth Program— Matanglawin of ABS-CBN 2, and special citations for Tropang Potchi and Binoy Henyo”of GMA 7; Best Adult Educational/ Cultural Program—Yaman ng Bayan by TV5, and special citations for Born to be Wild and i-Witness by GMA 7; Best Public Service Program—Reel Time by GMA News TV 11, and Failon Ngayon by ABS-CBN 2; Best Entertainment Program—Who Wants to Be a Millionaire?

by TV5, and Mag-TV na ato ni! by ABSCBN Northern Mindanao (special citation); Best Comedy Program—Pepito Manaloto

by GMA 7; Best Station ID—Masayang Muli ang Kwento ng Summer by ABS-

CBN Broadcasting Corp.; Best Religious Program—Kasama Natin Ang Diyos by PTV 4, and Visita Iglesia by GMA Network Inc.Cebu (special citation); Best Talk Show—Up Close and Personal: A Korina Sanchez Interview by ANC 21; Best Drama Series/Program—Be Careful with my Heart by ABS-CBN 2 and Titser by GMA News TV 11, and special citations for Honesto and My Little Juan by ABS-CBN 2; Best TV Special—Yolanda by ABS-CBN 2, and special citations for Bantay Kaban ng Bayan by GMA 7 and Stories of Bravery: Kerygma TV Holy Week Special by Shepherd’s Voice Radio & TV Foundation Inc.; Best Special Event Coverage—Saint John Paul II: We Love You by GMA News TV 11; Best News Magazine—Bigtime by TV5 and Brigada by GMA News TV 11 (special citation); Best News Program—24 Oras Weekend by GMA 7 and special citations for Solar Nightly News by Solar News Channel and State of the Nation with Jessica Soho of GMA News TV 11.

Also honored during the 36th year of the CMMA were the 2014 Cardinal Sin Catholic Book Awardees, namely, Spirit Moves by Fr. Christian Buenafe, and Jesus Dacillo, PhD. et. al.; Song of the Babaylan by Grace Nono; The Old Path of Loving Relationships by Bo Sanchez; Life as it should be by Alberto Agra; Morality of the Heart”by Fr. Eugene Salgado Elivera and Fr. Joselito Alviar Jose.

David Cagahastian

Economy BusinessMirror

news@businessmirror.com.ph

House bill bans imposition, collection of ‘comfort room fees’ in bus stations, terminals

T

HE House of Representatives has approved on third and final reading a measure prohibiting bus companies from collecting fees for the use of sanitary facilities in bus terminals, stops and rest areas.

House Bill (HB) 5067, principally authored by National Unity Party Rep. Maximo Dalog of Mountain Province, provides that it shall be declared unlawful for the owner, operator or administrator of land- transport terminals, stations, stops and rest areas to collect fees from passengers for the use of sanitary facilities.

HB 5067 refers to sanitary facilities that include at least a combination of comfort room, handwashing and drinking facilities.

A rest area refers to a facility at a strategic point along the national highway or route of traveling public that is provided with parking space, restaurants or snack bars, other business shops, recreational facilities, service stations, public restroom facilities or waiting sheds for travelers or commuters.

“For the purpose of this act, the concerned passenger must show the paid bus ticket for the day in order to avail of the free use of sanitary facilities. Provided, however, that the provisions of this act shall not apply to separate, well-appointed or deluxe sanitary facilities that

are operated solely for commercial purposes and for the convenience of passengers who require and prefer such facilities within a terminal, stop, station or rest area,” the bill said.

It also provides that any owner, operator or administrator of landtransport terminals, stations, stops and rest areas who violated the act shall be liable for a fine of P5,000.

Meanwhile, Dalog asked the Senate to pass its own version of the bill, saying this would stop bus-terminal owners and bus operators from exploiting their passengers.

He said that there have been mounting complaints from his constituents against the imposition of fees for the use of toilets when this should be part of the service for its passengers.

“What’s even more disturbing is the fact that many pay toilets are quite filthy,” Dalog said.

Meanwhile, coauthors of the bill include Liberal Party Reps.

Cesar Sarmiento of Catanduanes and Amado Bagatsing of Manila; National Unity Party Rep. Gavini Pancho of Bulacan; Nacionalista Party Rep. Raneo Abu of Batangas; Nationalist People’s Coalition and Assistant Majority Leader Xavier Jesus Romualdo of Camiguin; Liberal Party Rep. Dakila Carlo Cua of Quirino; and Party-list Rep. Terry Ridon of Kabataan. Jovee Marie N. dela Cruz

Friday, October 31, 2014 A5

FIT-All payment seen to raise power rates by P0.406 per kWh beginning Jan

S

By Lenie Lectura

TARTING January, power consumers will have to pay an additional P0.406 per kilowatt-hour (kWh) in electricity rates, representing feed-in tariff allowance (FIT-All).

This, as the Energy Regulatory Commission (ERC) on Thursday issued an order provisionally approving the application of the National Transmission Corp. (Transco) for it to collect FIT-All payment.

The FIT-All will serve as an incentive to renewable-energy (RE) developments, such as those on wind, run-of-river hydro, solar and biomass facilities.

The said rate will be collected from electricity end-users, and will be reflected in their electricity bills as a separate item as mandated by

the Renewable Energy Act of 2008 (RA 9513).

“The commission hereby provisionally approves the FIT-All of P0.0406/kWh, effective in the January 2015 billing of all on-grid electricity consumers,” said the ERC in its 27page decision released on Thursday.

“For this purpose, all distribution utilities, retail-electricity suppliers, the National Grid Corp. of the Philippines, are hereby directed to adopt the necessary modifications in their respective billing and collection systems, to effect the implementation

of the said FIT-All as a separate line item in their bills to end-users starting January 2015 billing and remit the same in accordance with the FITAll guidelines,” the regulator ruled.

Transco was tasked to administer the FIT-All payment to RE developers. It filed before the ERC a provisional authority to collect the FIT-All payment of P0.04057 per kWh. Wind-power developers are entitled to FIT rate of P8.53 per kWh; solar for P9.68 per kWh; hydro at P5.90 per kWh; and biomass at P6.63 per kWh. After collection, this will be placed in a fund, which will be administered

by Transco.

The ERC, in the same order, directed Transco to submit within 30 days from receipt of order data on remittance efficiency of entities collecting the universal charge submitted by the Power Sector Assets and Liabilities Management Corp. on calendar years 2013 and 2014.

Likewise, the regulator wants

Transco to submit within 30 days data on Electric Cooperatives Collection Efficiency obtained from the National Electrification Administration and within 15 days copy of the proposed trust agreement with the selected trustee of the FIT-All fund, together with details of the selection process undertaken by Transco.

In 2012 the ERC ruled that TransCo should administer the FIT payments in a bid to “resolve the issue that public fund[s] should be handled by [a] public entity.”

It said that the public funds will be managed by a government-owned and -controlled company and not by the private, Sy-controlled NGCP. NGCP manages and operates Transco’s nationwide power-transmission system, which links power plants with electricity utilities across the Philippines. However, according to Transco on its official web site, ownership of all of its transmission assets remains with Transco.

Lawmakers told: Justify approval of 2015 budget bill to constituents

F

ormer National Treasurer and Social Watch convener Prof. Leonor Briones on Thursday said House members should be made accountable to their constituents for allowing Malacañang to flex its muscle in determining the spending of the P2.606-trillion budget that was approved on Wednesday on third and final reading

without scrutinizing huge amounts of lump sum that won’t be subject to auditing.

Briones, along with other civil-society groups, urged House Speaker Sonny Belmonte in a letter to issue a memorandum to compel individual lawmakers to state their rationale for approving the proposed budget in its current form.

Among the concerns raised by the civil-society groups include the 269-page errata report on the budget; Malacañang’s redefinition of “savings”; and the presence of lump sums in the form of the P378.6-billion special-purpose funds.

Briones said the 269-page errata was earlier withdrawn by the Department of Budget and Man-

agementbutwasresubmittedandapprovedduring the small committee deliberation on amendments.

She added that Malacañang’s move to pool savings and authorize spending has also led to the creation of funds under the Disbursement Acceleration Program, which was declared unconstitutional by the Supreme Court. Estrella Torres

Opinion BusinessMirror

A6 Friday, October 31, 2014

Editor: Alvin I. Dacanay

editorial

PHL gaming explosion

G

AMBLING has always been a contentious issue in the Philippines. Some have asserted that illegal gambling is directly responsible for the massive corruption in the government and the police, while others point out that legal gambling generates massive revenues to the government.

We like to think of basketball as the national sport, but cockfighting, both legal and illegal, is a multibillion-dollar business here. Last year the Philippine Charity Sweepstakes Office earned more than P80 million a day.

The current focus for Philippine gambling is the Philippine Amusement and Gaming Corp.’s Entertainment City complex in Parañaque City, which was first conceptualized in 2002. Five integrated resort and gaming complexes are expected to rise there by 2018; the first of these, Solaire Resort & Casino, opened last year. Total investment will run about $15 billion as the various projects there come on line.

While thousands of jobs have been created by gambling and many thousands more are in the wings, it can’t be denied that the Philippines is, once again, late to the party, so to speak. It is decades behind Macau and Malaysia, and years behind Singapore. However, analysts see a bright future for the country as the Asian gaming-tourism market continues to grow.

JP Morgan Securities (Asia Pacific) recently released a research report that says the Philippines will see the fastest market expansion of the gaming business in Asia.

Part of this is due to a general increase in the gaming business. “We forecast Asian gross gaming revenue to grow [about] 50 percent to $85 billion by 2018, from $59 billion this year,” the report said. Fourteen major gaming resorts will open in the region by 2018, up from only three since 2011.

But the Philippines, due, in part, to the fact that it is just entering the business, will see the greatest growth. Our gaming-business compounded annual growth is expected to be over 15 percent between 2014 and 2018.

“We expect Philippine gaming revenues [to] double to $4.5 billion by 2018, from $2.2 billion in 2013,” the report said.

Two other factors favor the Philippines. The first is its penetration of the Chinese VIP market, and the second is Entertainment City’s cluster approach, which gives gaming tourists several choices in terms of accommodation and facilities at several price levels.

Also noted is the fact that foreign investors have financially stable and reliable local partners to invest with, and that the government’s participation is limited to licensing and revenue-sharing. Both South Korea and Singapore are viewed by foreign investors as having restrictive regulatory issues.

While there are those opposed to increasing gaming in the Philippines, we believe that the government’s regulatory approach to bringing in credible and large operators mitigates many potential problems. This business is both capital- and labor-intensive, and is good for the country.

BusinessMirror A broader look at today’s business Ambassador Antonio L. Cabangon Chua Founder Publisher Editor in Chief

T. Anthony C. Cabangon Jun B. Vallecera

News Editor City & Assignments Editor Special Projects Editor

Dionisio L. Pelayo Vittorio V. Vitug Max V. de Leon

Online Editor

Ruben M. Cruz Jr.

Research Bureau Head Creative Director Chief Photographer Editorial Consultant Chairman of the Board & Ombudsman President VP-Finance VP-Corporate Affairs VP Advertising Sales Advertising Sales Manager Circulation Manager

Dennis D. Estopace Eduardo A. Davad Nonilon G. Reyes Romeo M. del Castillo Judge Pedro T. Santiago (Ret.) Benjamin V. Ramos Adebelo D. Gasmin Frederick M. Alegre Marvin Nisperos Estigoy Aldwin Maralit Tolosa Rolando M. Manangan

An invitation from the Comelec James Jimenez

spox

F

OR those of you keeping tabs on the progress of the Commission on Elections’s (Comelec) preparations for the 2016 national and local elections, this week saw the start of the Automated Election System procurement process.

Approved budget for the contract ON Tuesday the Comelec published its invitations to bid for the lease of an election management system, a precinct-based optical mark reader (OMR) or optical scan system and a direct-recording electronic (DRE) voting system.

For the OMR system, the Comelec has an approved budget of P2,503,518,000. This is broken down into four components: a total of 23,000 voting machines, at P90,000 each; 16,500,000 ballots, at P20 each; 20,406 ballot boxes, at P3,000 each; and the services of 4,550 pollingcenter technicians and 150 National Technical Support Center technicians, or a technical support complement valued at P42,300,000.

For the DRE system, the Comelec is looking to acquire 410 units at P75,000 each, together with ballot boxes and technical support valued at P1,834,000, for a total approved

www.businessmirror.com.ph

regional offices n DXQR - 93dot5 HOME RADIO CAGAYAN DE ORO STATION MANAGER: JENNIFER B. YTING E-MAIL ADDRESS: homecdo@yahoo.com ADDRESS: Archbishop Hayes corner Velez Street, Cagayan de Oro City CONTACT NOs.: (088) 227-2104/ 857-9350/ 0922-811-3997 n DYQC - 106dot7 HOME RADIO CEBU STATION MANAGER: JULIUS A. MANAHAN E-MAIL ADDRESS: homecebu@yahoo.com ADDRESS: Ground Floor, Fortune Life Building, Jones Avenue, Cebu City CONTACT NOs.: (032) 253-2973/ 234-4252/ 416-1067/ 0922-811-3994 n DWQT - 89dot3 HOME RADIO DAGUPAN STATION MANAGER: RAMIR C. DE GUZMAN E-MAIL ADDRESS: homeradiodagupan@ yahoo.com ADDRESS: 4th Floor, Orchids Hotel Building, Rizal Street, Dagupan City

CONTACT NOs.: (075) 522-8209/ 515-4663/ 0922-811-4001 n DXQM – 98dot7 HOME RADIO DAVAO STATION MANAGER: RYAN C. RODRIGUEZ E-MAIL ADDRESS: home98dot7@gmail.com ADDRESS: 4D 3rd Floor, ATU Plaza, Duterte Street, Davao City CONTACT NOs.: (082) 222-2337/ 221-7537/ 0922-811-3996 n DXQS - 98dot3 HOME RADIO GENERAL SANTOS STATION MANAGER: AILYM C. MATANGUIHAN E-MAIL ADDRESS: homegensan@yahoo.com ADDRESS: Ground Floor, Dimalanta Building, Pioneer Avenue, General Santos City CONTACT NOs.: (083) 301-2769/ 553-6137/ 0922-811-3998 n DYQN - 89dot5 HOME RADIO ILOILO STATION MANAGER: MARIPAZ U. SONG E-MAIL ADDRESS: homeiloilo@yahoo.com ADDRESS: 3rd Floor, Eternal Plans Building,

Ortiz Street, Iloilo City CONTACT NOs.: (033) 337-2698/ 508-8102/ 0922-811-3995 n DWQA - 92dot3 HOME RADIO LEGAZPI STATION MANAGER: CLETO PIO D. ABOGADO E-MAIL ADDRESS: homeradiolegazpi@ yahoo.com ADDRESS: 4th Floor, Fortune Building, Rizal St., Brgy. Pigcale, Legazpi City CONTACT NOs.: (052) 480-4858/ 820-6880/ 0922-811-3992 n DWQJ - 95dot1 HOME RADIO NAGA STATION MANAGER: JUSTO MANUEL P. VILLANTE JR. EMAIL ADDRESS: homenaga@yahoo.com ADDRESS: Eternal Garden Compound, Balatas Road, Naga City CONTACT NOs.: (054) 473-3818/ 811-2951/ 0922-811-3993

Printed by brown madonna Press, Inc.–San Valley Drive KM-15, South Superhighway, Parañaque, Metro Manila

Two-stage bidding

THERE will be a two-stage competitive bidding process, which will be open to all interested local and foreign bidders who meet the eligibility criteria provided for in the imple-

Learning to love China’s new superbank William Pesek

BusinessMirror is published daily by the Philippine Business Daily Mirror Publishing, Inc., with offices on the 3rd floor of Dominga Building III, 2113 Chino Roces Avenue corner De La Rosa Street, Makati City, Philippines.

Tel. Nos. (Editorial) 817-9467; 813-0725. Fax line: 813-7025.

(Advertising Sales) 893-2019; 817-1351, 817-2807.

(Circulation) 893-1662; 814-0134 to 36. E-mail: news@businessmirror.com.ph.

budget of P32,584,000.

All costs have been quoted inclusive of all taxes, such as, but not limited to, value-added tax, income tax, local taxes and other fiscal levies. Bids received in excess of the approved budget for the contract shall be automatically rejected at the opening of the bids.

All bidders are required to have completed, within six years from the date they submit their bids, a contract similar to the automation project. And, as required by the automation law, the system offered by the bidder must have been successfully used in a prior electoral exercise, whether here or abroad.

menting rules and regulations of Republic Act 9184, otherwise known as the Government Procurement Reform Act. According to the Manual for the Procurement of Goods and Services issued by the Government Procurement Policy Board (GPPB), “the first stage [of the bidding] involves the issuance, by the procuring entity, of bidding documents with technical specifications that are not yet welldefined and merely in the form of performance criteria, and the submission, by the bidders, of their respective letters of intent; eligibility requirements, if needed; and initial technical proposals without price.”

This allows the procuring entity—in this case, the Comelec—to first screen all interested parties for eligibility and, from those who are considered eligible and compliant with the minimum performance standards, to receive inputs that will further refine the technical specifications originally released. With that added insight, the Comelec will then draw up the final revised technical specifications that will be the basis for the technical proposals and financial bids of the eligible bidders.

This process is resorted to when—again, according to the GPPB’s manual—“due to the nature of the project requirements [e.g., complex information and communications technology], the required technical specifications/requirements

BLOOMBERG VIEW

T

AKE that, Barack Obama! Even if Chinese President Xi Jinping hasn’t uttered these words publicly, that certainly seems like the message of China’s new superbank.

Last Friday representatives from 20 other Asian nations signed onto Xi’s latest project, the Asian Infrastructure Investment Bank (AIIB).

Most were smaller countries: Japan, Indonesia, Australia and South Korea held aloof, the latter two reportedly after facing pressure from Washington. The United States has expressed obvious concerns about the new bank’s transparency and governance structure, not to mention the competition it might pose to existing lending institutions like the World Bank and the Asian Development Bank (ADB).

This is a mistake. The US shouldn’t just support China’s $50-billion Asia bank, but seek to join it.

Why? First of all, to cite the cliché, it’s best to keep your enemies close.

Washington’s fears aren’t groundless. A bank dominated by China could, indeed, reduce the West’s influence over emerging nations in Asia. Beijing will offer no-strings-attached largesse to governments, asking only loyalty in return, instead of economic upgrades and open capital accounts. Others worry that China, a bilateral bully in the best of times, will use its influence to dominate resource and food-supply chains.

But even if so, the best way to influence the bank’s lending behavior is from within the tent, not outside.

If Obama’s team worries that this new bank will promote China’s values over America’s, then why not ask for a voting share—or, at least, an advisory role. In fact, to enhance its clout, the US should offer to match

China’s contributions to the enterprise, as best it can. Granted, given China’s deep pockets and a hostile Republican opposition, this would be a tough sell for Obama. But the old Asian order, with the US at its center, is over. Supporting emerging new institutions would enable the US to solidify its role in the region alongside China, not in opposition to it.

Second, this is only China’s latest salvo in a long-term battle for supremacy in Asia. The US should reflect on why China is so eager to sideline existing international institutions.

For one thing, the US and archrival Japan continue to dominate bodies like the International Monetary Fund (IMF) and the ADB. At the same time, despite all the happy talk about welcoming its rise, the US has sought to contain, rather than make room for, China. If the US wants Beijing to act like a global stakeholder and play a bigger role addressing everything, from climate change to geopolitical stability to Ebola, Congress should pass reforms giving China a bigger say in existing institutions.

Finally, competition is good.

Yes, risks abound. China could well use the new bank to support unsavory regimes and to undermine environmental and labor protec-

of the contract cannot be precisely defined in advance of bidding, or it may be undesirable or impractical to prepare complete technical specifications in advance.”

As an added benefit, this process will result in standardized technical specifications that will include input, not only from the bidders themselves, but also from all stakeholders. The adoption of this procedure makes this invitation to bid much more than just a call to prospective vendors. It becomes, in fact, an invitation to everyone to be involved in the process of shaping the automated elections in 2016.

Calendar of activities

THE first prebid conference will be held on November 4, and the submission of eligibility requirements and initial technical proposals is set for December 4. On the same day, the submissions will be opened, kicking off the two-week period for the evaluation of the technical merits of the initial proposals.

Barring any major disruption in the timetables set by the Comelec, it is expected that, by December 22, the final revised technical specifications will be issued to eligible bidders. It is only then that these bidders will be asked to submit their final technical proposals and financial bids.

James Jimenez is the spokesman of the Commission on Elections.

tions. But, at the same time, Asia needs about $8 trillion in infrastructure spending through 2020. The IMF, World Bank and the ADB can’t meet all that demand. And let’s face it, China has developed considerable expertise at generating economic growth via infrastructure over the past couple decades.

Losing their monopoly over development projects in Asia should force those existing international institutions to become more nimble and less demanding of rigid, by-thebook reforms in nations that may be ill-equipped for shock therapy. As much as the new bank will complement existing institutions, it will also vie to build power grids in Mongolia, ports in Vietnam, dams in Myanmar and roads in Thailand. For the US, which preaches the gospel of free markets, to block competition that could ultimately benefit millions of Asians would be hypocritical.

Rather than fight China, the US should help ensure that the new bank adopts greater accountability and higher lending standards than China typically does when doling out money. Carping from afar, and strong-arming rivals to do the same, isn’t the best way to accomplish that worthy goal.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Friday, October 31, 2014

To regulate or not to regulate: Damage suit vs Cathay Pacific Uber and other regulatory issues Butch del Castillo Dr. Alvin P. Ang

EAGLE WATCH

T

HE current economic growth is being challenged by institutional concerns, particularly those regarding the delicate balance between the state and the market. Major issues, like inadequate infrastructure, abuse of market power and new market institutions, bring to the fore the need to understand the increasing complexities brought about by technology, organization and capacities to regulate.

But why do we need regulation? When there is market failure, basic economics tells us that the state needs to intervene, because some industries—like infrastructure, utilities and transportation— have large capital requirements that can limit ownership to a few and lead to a lack of competition. With few producers, there is a strong tendency to abuse market power, or the power to dictate prices and minimize the supply or availability of services. Abuse of market power—a classic sign of market failure—is a great challenge to the state regulator, where it needs to walk on a tightrope, given the varying interests of stakeholders.

Economists have been working on regulations for some time now. In fact, out of the 46 times the Nobel Prize in Economic Sciences has been awarded, 12 were related to research on the efficient functioning of markets. And out of the 12, two were focused primarily on regulations. George Stigler won in 1982 for his research on industrial structures, the functioning of the market, and the cause and effects of public regulations.

This year French economist Jean Tirole earned the prize for his work that extensively analyzed the behavior of firms and regulatory agencies. His trailblazing researches have altered the simplistic view of applying general regulatory policies to all industries, with price caps as a typical example. He proposed that the best regulatory framework is one that is carefully adapted to the specifities of an industry.

With the onset of new technologies, new types of industries are rising, many of which are part of what economists call the “sharing economy.” This is composed of enterprises developed based on the principle of sharing resources—allowing customers to access on time goods and services that are, more often than not, of good quality and reasonably priced.

While sharing goods has always been typical behavior among friends, family and neighbors, the idea of collective consumption has been transformed from a family and communal system into a lucrative business model. Recent examples of these are Airbnb, a web site that permits people to rent out lodging, and Uber, which offers transport services.

Applying regulation to these emerging industries will surely baffle even the most competent regulators. Are these new private solutions to market and regulatory failures that the state should back off from? Or are these sunrise industries vulnerable to abuse of market power? As an example, let us look at the recent issue about Uber and the reaction of the Land Transportation Franchising and Regulatory Board (LTFRB).

In its March 29 issue, The Economist

argued that Uber is revolutionalizing the taxi industry all over the world. On one hand, it is making taxi riders happy, but, on the other, it threatens the industry.

The taxi industry is heavily regulated, and entry is sometimes expensive. In New York City the equivalent of a franchise, called a medallion per vehicle, has fetched over $1 million each. In principle, and from a purely competitive situation, what you really need is a car and a driver’s license to start a taxi business. More cars can enter the business if demand increases, and exit it if demand falls. However, as taxis are public transportation, they have to align their objectives with public welfare. This is why, in the Philippines, the LTFRB regulates the industry and has the sole authority to grant permits to operates, called certificates of public convenience.

The recent apprehension of an Uber car by the LTFRB and its being charged with providing a service without a franchise is a case in point. The existing system of franchising is not able to catch up with the efficiency of information that technology is providing for an emerging enterprise, like Uber. It also shows how ineffective the current franchise mechanism is responding to demand. We note the rise of FX and other utility-vehicle services, most of which do not have legal franchises. These developments, including that of Uber, are responses to market and regulatory failures. The action of the LTFRB is meant to protect the current status quo, but riders are looking for better options. Hence, it makes sense when people are willing to pay more just to reach their destination on time. Riders are not really concerned if the vehicle is insured or not. How many of us will be willing to pay more just to reach the airport before the check-in counter closes?

The LTFRB may be legally right to require Uber to get franchises, but, at the same time, technology is telling the government that regulation is demanding more from it. Similar to the conclusion of Tirole, regulation cannot be a pattern for all types of industries. Rather, it requires the regulator to carefully study the industry concerned well beyond its current and past performance, and look way ahead into the future. Otherwise, technological innovation and great enterprises that respond effectively to market demand may be hampered. The regulatory role of the LTFRB should not inhibit the better functioning of markets, but to expand them for the benefit of the riding public.

OMERTA

A

FEW weeks ago, I wrote about a very unpleasant experience that the owner of this paper, former Ambassador to Lao People’s Democratic Republic Antonio L. Cabangon Chua, and a companion underwent when he chose to fly via Cathay Pacific Airways (CX) during one of his weekend trips to Hong Kong sometime last month. (That article ran under the heading, “Cathay Pacific’s dishonest dealings,” in the BusinessMirror’s October 7 issue.)

That “bad trip” happened on September 26, when they were told at the airport terminal by Cathay Pacific’s ground crew that their confirmed business-class bookings had to be downgraded to economy class.

The Cathay Pacific crew announced to all the downgraded passengers that the aircraft originally assigned for that particular flight—CX918—had to be serviced and replaced by a smaller aircraft with fewer seats for businessclass passengers. (“Maintenance leak,” was all they said, leaving it to the downgraded passengers to imagine that the aircraft’s toilet bowl probably overflowed after each use.)

Since the ambassador had paid a total of $1,958.58 for two roundtrip, business-class tickets, and $538.56 for two additional roundtrip, economyclass tickets for other companions during the same trip, he naturally expected that the airline would, at the very least, automatically pay back the difference of $1,420 between the business-class and economy-class accommodations.

(The tickets were bought through Cathay’s direct online-booking facility, which is not subject to any commission from any travel agency.)

The Cathay Pacific crew, however, only gave the ambassador and the others vague assurances that the airline would fully reimburse them for the huge difference of $1,420.02.

But, right there at the airport, it soon became obvious that Cathay Pacific had no intention whatsoever of giving back to the ambassador and his companion what were due them.

Instead, just minutes before boarding

time, the ground personnel tried to pay them P3,000 each in exchange for signing a document that they said was a receipt for the “advance” on a future reimbursement of the fare difference.

Fortunately, they discovered that the document they were being asked to sign was a quit claim absolving the airline of all liabilities for the downgrading. The ambassador, of course, refused to sign the waiver. But he boarded the plane so as not to spoil what he had hoped would be a stressfree weekend.

Lousy food

ON board the economy class of that Cathay Pacific flight to Hong Kong, the ambassador—now in a very dour mood—was served breakfast consisting of two pieces of bread that he couldn’t eat. The stress and aggravation, and the fact that he hadn’t eaten anything, caused his blood sugar to drop to dangerously low levels by the time they landed in Hong Kong.

Fortunately, that weekend in Hong Kong came to pass without further mishaps or aggravations. He was able to indulge his craving for scallops and soft-shelled crabs. That was the only purpose of his trip, by the way: to do some gourmandizing.

As far as he was concerned, the downgrading incident was easily forgettable. But the attempt by Cathay Pacific personnel to pull a fast one by making him and his companion sign a quit claim in exchange for P3,000 each was “very insulting.”

He made this plain in a subsequent demand letter that he sent to Alan Lui, Cathay Pacific’s country manager

The ghouls in our lives Tito Genova Valiente

annotations

H

ALLOWEEN, in the Western or American sense of it, is here. In malls, graveyards materialize. Cobwebs cover display windows; instead of mannequins, skeletons rattle and swing in the air-conditioned breeze. The more daring decorators place coffins near boxes of shoes. Morbidity attends this seasonal aesthetics.

Alvin P. Ang, PhD, is a professor of economics at the Ateneo de Manila University and a senior fellow of Eagle Watch, the university’s macroeconomic research and forecasting unit.

Unwieldy govt hurts Bosnia-Herzegovina

T

HIS month Bosnia-Herzegovina held national elections, which were still smothered by the heavy political superstructure placed on it by the 1995 Dayton accord that ended its war.

Eight thousand candidates, representing 65 parties and 24 coalitions, contested 500 posts in a country of 3.9 million. There were three presidents to be elected to the rotating presidency—one for the Muslims, one for the Croats and one for the Serbs. There were the 42 members of the House of Representatives to be chosen. There were presidents and legislators to be elected for the country’s two entities, the Serbian Republic and the MuslimCroat Federation of Bosnia and Herzegovina.

In the end, the people weren’t very interested. Turnout was 54 percent of the 3.3 million eligible voters. That was down from the last election, when 56 percent voted.

The results were uninspiring. The three presidents elected to office, Bakir Izetbegovic for the Muslims, Dragan Covic for the Croats and Zeljka Cvijanovic for the Serbs, are considered ethnic radicals. Covic wants to split the Croat-Muslim entity. Cvijanovic wants to dissolve Bosnia-Herzegovina altogether.

Unemployment is estimated at 44 percent.

Corruption and poverty are pervasive. Foreign investors do not come. There was political unrest in parts of the country in February. Membership in the European Union, believed to be the country’s salvation, is unlikely, given the political situation.

What is needed is a constitutional convention to replace the cumbersome governmental structure. From that could come a system to bring Bosnia-Herzegovina into a brighter future. For the moment, its people can look forward to four more years of paralysis. Pittsburgh Post-Gazette/TNS

The season of remembering our loved ones who had gone ahead has become a dark tribute to the power of death, snuffing all the hope out of our memories. In place of those lovely thoughts of our kin who have passed away and risen like phantoms is the sense of decoration that is a cross between a sanatorium’s imagining of death and a clown’s rendition of cemeteries and haunted houses.

Where does our sense of life after death, or life after life, lay among these artifacts? Perhaps, the question should be: What happened to things, from catechism

to cemeteries? Has our observance of the Feast of All Souls become a reflection of what memorial parks have brought about: Festive days and nights spent in front of candles? The picnic favored over prayers? Displays of abundant food brought over to parks and mausoleums?

Even in small cities, children are dressed as vampires or monsters. They go on trick-or-treating, courtesy of fast-food companies or department stores. Years ago, this newly minted tradition was limited to gated communities, where children could roam around the safe

in the Philippines, through lawyer Alexis Oco. To any man of his stature and means, the fare difference of $1,402.02 based on current ticket prices is also easily forgettable. But it really is the principle of the thing.

Quit-claim gimmick

HOW many times has Cathay Pacific Airways gotten away with this quitclaim gimmick? How many unsuspecting VIP passengers have been had by what looks like Cathay Pacific’s standard operating procedure, or SOP? Back in Manila, after he had sent his demand for a refund of the $1,402.02 fare difference, Cathay Pacific lawyers—the Siguion Reyna Montecillo & Ongsiako law offices—replied to Oco that the airline would be willing to refund “the fare difference of only $188 for each pax.” This would be over $1,000 less than the amount demanded by the ambassador.

In addition, the law office said, “As further goodwill, and due to your client’s patronage of CX, our client is offering your client one-class, onesector complimentary upgrade on a flight operated by CX, subject to seat availability—valid for one year from date of issuance.” (Here, after being so dishonest, Cathay Pacific is offering the ambassador freebies, like offering candy to a wailing baby.)

This reply from Cathay Pacific’s lawyers was signed by Mario Andres and Carlos M. Natividad.

The foregoing counteroffer, of course, had the effect of adding insult to the previous insults and injury already suffered by the ambassador.

As I predicted, that small incident has now produced a full-blown suit for moral and exemplary damages.

The ambassador’s lawyer described Cathay Pacific’s counteroffer as “baseless, inequitable and downright insulting.” How can this airline reduce the difference in the prices of businessclass and economy-class tickets from $1,402.02 to only $376 (or $188 each)?

The arithmetic simply does not make sense.

Excerpts from the final demand letter sent by the ambassador’s counsel to Cathay Pacific: n “Our client disputes your allegation that the original aircraft assigned to Flight CX918 had to be serviced due to maintenance leak and for which reason

neighborhood without the fear of being kidnapped, molested or run over by pedicabs. In poorer communities, scenes of children with tiny yellow plastic buckets moving from house to house show a ritualized form of begging. There is nothing there about tricks. What is there is the reality of poverty.

A few years ago, writers started questioning the transformation of so-called All Souls’ Day into Halloween, and how the observance did not fit the Filipino way. Then I sort of predicted that, trick-ortreating would become part of the last days of October and the first two days of November. Then I wrote how Halloween would be like the Christmas trees and the artificial snow sprayed on windowpanes and glass doors.

I do not question these changes.

I summon Goethe, who said: “Life belongs to the living, and he who lives must be prepared for changes.”

Whenever the last day of October and the first two days of November come, I am reminded of only one thing: I belong to the living. My duty is to remember those who are not here. Flowers and candles will help me in this task, even as I know that, when I go to the memorial park and gaze down at those names that are inked anew by a dutiful nephew, my visit is not for them who are not here, but for me who stays on. On any of those special days, I will look at the lines we opted to write below the names of those whose voices we sorely miss, read them slowly and discover once more how words are for us to be assured.

It has been three years since I opted partially to relocate to the city where my mother lives.

In those three years, I have been conscious of the many changes

A7

it was replaced by an aircraft with [a] smaller capacity for business-class seats…which were given to Marco Polo Club members, resulting in the downgrading to economy class…. For the record, our client was informed upon checking in that the aircraft assigned to that flight had no business-class seats and that all seats were classified as economy class…. The claim that the limited business seats were offered to Marco Polo members were, likewise, a pure lie. It is worth emphasizing that our client is a Marco Polo member and no such offer was made to him.”

Discrimination

n “EVEN assuming that our client

is not a Marco Polo member, your action of giving preference to other passengers over our client with two confirmed business-class tickets cannot be justified. This is a clear violation of the contract of carriage between you and our client…. Giving preference to a certain class of passengers over another shows the pervasive policy of discrimination being upheld by your airline. Discrimination is evident right in your VIP lounge, where foreigners are accommodated inside the lounge, while Filipino passengers are made to seat outside. n “Your attempt to make our client accept P3,000 in exchange for signing a quit claim was an outright attempt to cheat our client of what was due him and his companion. Obviously, it is already part of your SOP to mislead downgraded passengers into believing that this small amount is only an initial payment for refunds that they can never hope to get in view of the waivers they signed.

Now totally disgusted with the lessthan-forthright way this airline is doing business, the ambassador has made a formal final demand, and not only for a refund of the undelivered businessclass accommodations of $1,402.02.

He is now demanding an additional P2 million in damages.

“Should you fail to comply as herein required, we shall be constrained to file the appropriate court against you, which would necessarily include claims for interests, incidental damages, attorney’s fees and the costs of litigation.”

E-mail: omerta_bdc@yahoo.com.

that have happened in the city. It remains small, but there are new structures and new streets. When I walk around the city at dusk, I always sense the world stopping below my feet. I see once more the city that was a town. The massive cathedral looms and the old seminary beside it seems to fly with the setting sun. The first time this feeling took over me, I walked back to the place where we first lived.

The house with blue walls was not there anymore. I looked up, but there was nothing.

This weekend I plan to go there once more. I will climb up the stairs.

In the living room, I know I will see once more my aunt looking down from the huge window, commenting on the people passing by. I will see my brother Pempe, freed of all cancer cells, preparing to go down and walk to the street corner to pose forever, confident about how good-looking and charming he is. I will see my father—my mother fondly calls him Joker—healthy and strong, quoting from poets we were unfamiliar with then. A plaintive tune will come from the biggest room in the house: “The night seems to fade in the blossoming dawn/The sun shines anew/But the dance lingers on.... We find that our love is unaltered by time.” I will see my grandfather Elpidio going to where my grandmother Emilia is. He will extend his hand, she will stand up, and they will dance and dance and dance.

That is how my Halloween, the Feast for the Dead, will go. No death.

No devils. No candles even. No ghouls. Just life and warm thoughts about love and those we will always love and whose lives we will keep close to our hearts.

E-mail: titovaliente@yahoo.com.