BusinessMirror December 18, 2014

BusinessMirror

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U.N. Media Award 2008

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A broader look at today’s business

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Tuesday, Thursday,November December18, 18,2014 2014Vol. Vol.1010No. No.4070

P25.00 nationwide | 6 sections 3o pages | 7 days a week

BASED ON INDICATIVE NUMBERS, Q4 GROWTH FASTER THAN Q3’s 5.3%––BALISACAN

PAPAL VISIT 2015

ADB cuts PHL growth forecast

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he slower pace of economic expansion in the first three quarters of the year forced the Asian Development Bank (ADB) to revise downward its growth estimate for the Philippines in 2014.

27 DAYS INSIDE

a countryside tour of georgia D

Spirit of unity

EAR Lord, may the spirit of unity reign in our midst.

As human beings we are called to “interpersonal communion” with others. We are zealous in taking the initiative to infuse the Christian spirit of unity into the mentality, customs, laws and structures of the communities of which we are part, mindful that Jesus desires is to be one with one another, just as He and the Father are one. We, therefore, make the necessary effort to establish relationships of love, joy and peace with others as one big Family in Christ. Amen.

CHILDREN’S ROSARY FOUNDATION, JO A. SALDANA AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

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

Life

In the Asian Development Outlook Supplement, the ADB said the Philippine economy is now projected to post a growth of 6 percent from the September estimate of 6.2 percent.

“After GDP [gross domestic product] in the Philippines rose by 6.1 percent in the first half, the growth pace fell back to 5.3 percent in the third quarter. Robust private consumption, and higher private investment and net exports were insufficient to balance unexpectedly weak public spending,” the ADB said.

“As growth in the first nine months of the year reached only 5.8 percent, the 2014 GDP growth forecast is downgraded by 0.2 percentage points to 6 percent,” it added.

FAITH AND MAGIC GET A MAG ‘REVIVAL’... »D4

BusinessMirror

Thursday, December 18, 2014

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THE San Fernando Pampanga giant lantern at the CCP. ORLY DAQUIPIL

SAN FERNANDO GIANT PAMPANGA LANTERN LIGHTING AT THE CCP

A 20-FOOT-HIGH colorful lantern from San Fernando, Pampanga, was lit at the Main Ramp of the Cultural Center of the Philippines (CCP) recently.

The event was held in cooperation with the City of San Fernando, Pampanga.

CCP Performance and Exhibition Department Manager Ariel Yonzon and Ching Pangilinan of the City Tourism and Investment Promotions of San Fernando City spoke at the event.

The San Fernando lantern display is the fourth to be held at the CCP under a partnership between the CCP and the City of San Fernando, Pampanga.

San Fernando, Pampanga, is known as the Christmas capital of the Philippines. The San Fernando parol is renowned for its large size, brilliant colors and flashing kaleidoscopic patterns made possible by the intricate electrical circuitry fashioned by the craftsmen of San Fernando. The Ligligan Parul, or the Giant Lantern Festival, is the top tourist attraction of the city.

The San Fernando parol is on display at the CCP until January 4, 2015.

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❶ ANANURI

Fortress

❷ BORJOMI ❸ GERGETI Trinity

Church

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JVARI Monastery

❺ DAVID Gareja

AUSTIN, Texas

Top travel destinations for 2015 B N R The Atlanta Journal-Constitution

A countryside tour of Georgia B B L

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NE of the highlights of our 10-day, Qatar Airways-sponsored working visit to the Republic of Georgia was our three-day tour of the Georgian countryside sponsored by the Georgia National Tourism Administration (GNTA). For this purpose, the GNTA provided us with a coach, a driver and a guide—the affable Sopho Makashvili. Our party consisted of Thelmo O. Cunanan Jr. (honorary consul of Georgia in the Philippines), Pancho Piano (the first Filipino artist to officially present his work in Georgia and the entire Caucasus Region), Riva M. Galveztan (health food advocate), Prof. Melissa DizonDulalia and yours truly.

Day One saw us traveling along eastern Georgia at Mtskheta, one of the country’s oldest cities and the former capital of the Georgian Kingdom of Kartli—Iberia. Here, we visited the hilltop Jvari Monastery, known for the exceptional relief sculptures decorating its façade, and Svetitskhoveli (the Living Pillar Cathedral), known as the burial site of Christ’s mantle and the site for the coronation and burial of Georgian kings. In the afternoon, after lunch at Gori, we dropped by the Joseph Stalin Museum which contains a memorial house (where native son Stalin was born),

exposition building with tower and Stalin’s personal railway coach by which he had traveled to Tehran, Yalta and Potsdam.

From here, we also made a 10-kilometer drive to visit Uplistsikhe, an ancient, abandoned rock-hewn town identified as one of the oldest urban settlements in Georgia.

We started Day Two by traveling 157 kms to the northeastern Georgian town of Stepantsminda (formerly Kazbegi) with a short stopover at the scenic Ananuri Fortress which stands spectacularly above a reservoir on the Aragvi River. While waiting for our transfer at snowy Gudauri, I had fun experiencing my first snowball fight with my companions. Upon arrival at Stepantsminda, we had lunch at the beautiful Rooms Hotel prior to our 30-minute drive up a rough mountain trail, to the 14th-century Gergeti Trinity Church, the only cross-cupola church in Khevi province and a symbol of Georgia.

Day Three again brought us back to the east, this time to the postcard-pretty town of Sighnaghi, with stopovers at the Badiauri Village in Sagarejo, where we observed the baking of the delicious, canoe-shaped Georgian shoti (bread) in a tone (deep, circular clay oven); and the Bodbe Monastery, the burial place of the revered Saint Nino, a fourth-century female evangelist who preached Christianity in Georgia.

Upon arrival at Sighnaghi town proper, Sopho took us on a walking of the town’s defensive wall where we climbed one of the towers for a panoramic view of the town. We were also enthralled by its two- to three-story tiled-roof houses with their wooden, lacy balconies and bow-backed windows. A delightful lunch of Georgian cuisine awaited us at Pheasant’s Tears, a winery that produces artisanal natural wines according to ancient Georgian traditions.

After lunch, we moved on to the village of Tsinandali in the Kakheti region. Here, we visited the estate and the historic winery which once belonged to the 19thcentury aristocratic poet Alexander Chavchavadze (1786-1846). The house-museum, which often hosts various exhibitions of prominent Georgian and foreign artists, is surrounded by a beautiful park with a unique and interesting layout.

The next day, Riva and I, together with our guide Sopho and driver Giorgi, drove to David Gareja, near the border with Azerbaijan, unique for its wild nature, mural masterpieces and rock-hewn monasteries.

Prior to our GNTA-sponsored tour, Riva and I also joined Filipino expat, Ruby Bebita, on a visit to the south-central resort town of Borjomi, famous for its mineral water industry. The next day, we continued on to explore Vardzia, another cave monastery site in Southern Georgia. ■

WHILE some of us are still making our holiday travel plans, Travelzoo is looking to the future.

The travel web site recently released its list of the top five destinations to travel for 2015.

These are places around the world where you are likely to see impressive deals based current trends and travel industry projections. Here’s the list (in alphabetical order) and a few reasons why it’s a hot destination for 2015: ■ Asia: New ships and itineraries mean more deals on Asia cruises. You can take in several countries in one trip or do a deep dive into areas like Thailand’s Phang Nga Bay. The deals will range from large ocean liners to small, luxury ships and more.

■ Brazil: Last year was the Fifa World Cup. In 2016 it’s the Summer Olympics. That makes 2015 the perfect time to visit the country and take advantage of the savings. Plans to open 400 new hotels by 2016 means there will be lots of price competition for lodging.

■ Dubai: Dubai has been on top destination lists for a while. Now it is a major player in the world of tourism. Two airports attract 71 million passengers annually who come to see sights including Burj Khalifa, the world’s tallest skyscraper. In 2020 the country welcomes the World Expo; take it in now while travel discounts are plentiful.

■ Puerto Rico: This is always an affordable vacation option as it is easy to fly in and you don’t need a passport. JetBlue Airways, Southwest Airlines and United Airlines have increased air routes to get you to more than 200 beaches on the island.

■ Texas (Austin, San Antonio): The big state will have big deals next year. Here’s Texas by the travel numbers: two airports, 11 airlines servicing the state and several hotels opening in 2015. Spring offers the best weather and events such as SXSW and Fiesta San Antonio. TNS

life

World Companies BusinessMirror

Editor: Dionisio L. Pelayo• corp@businessmirror.com.ph

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AKLAND, California—A federal jury decided on Tuesday that Apple did not compete unfairly when it sold music players and songs with copy-protection software that was incompatible with rival devices and music from competing online stores.

The eight-member jury in the US District Court handed Apple a victory by rejecting a claim from consumers’ and iPod resellers’ lawyers, who were seeking as much as $1 billion in a class-action lawsuit. The plaintiffs argued that Apple was able to overcharge consumers for iPods by making it difficult to switch to a rival music player, as music bought from Apple’s iTunes store would not work on other players, nor would music from other stores work on iPods.

After just three hours of deliberation, the jury accepted Apple’s argument that the software provided necessary security protection and was part of a larger package of improvements that made iPods and iTunes popular with consumers.

Apple applauded the verdict: “We created iPod and iTunes to give our customers the world’s best way to

listen to music. Every time we’ve updated those products — and every Apple product over the years — we’ve done it to make the user experience even better.”

Apple no longer uses the copyprotection software in question, so the ruling has no effect on the company’s current practices.

The case, originally filed in 2005, covers an estimated 8 million consumers who purchased iPods from 2006 to 2009, when the software was still in place.

The plaintiffs argued that the software locked people into using iPods and allowed Apple to overcharge for the devices. Plaintiffs were seeking $350 million in damages, which could have been tripled if the jury found Apple violated antitrust laws.

Lawyers for the plaintiffs said they plan to appeal. “We’re glad we

got this to the jury,” lawyer Bonny Sweeney said. But she said that a ruling by US District Judge Yvonne Gonzalez Rogers kept the jury from considering the impact of encryption code used in an iTunes software update that was the focus of the trial.

During a two-week trial, the plaintiffs’ attorneys played a video of testimony by the late Apple CEO Steve Jobs, who died in 2011. They also showed e-mails between Apple executives that indicated they were concerned about some early efforts by rival companies to sell digital music files that might be played on iPods.

But Apple executives testified they were focused on preventing unauthorized copying—which was a big concern of recording labels— and said Apple was worried that digital files from outside sources might compromise the security of its iTunes software.

In what turned out to be the key issue of the trial, Apple argued that its iTunes software updates were legitimate product improvements, which combined security

Former employees sue Sony over hacked personal details

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EW YORK—Two former employees of Sony Pictures Entertainment are suing the company for not preventing hackers from stealing nearly 50,000 social security numbers, salary details and other personal information from current and former workers.

The lawsuit claims that Sony Pictures failed to secure its computer systems despite “weaknesses that it has known about for years,” and made a business decision to accept the risk. It states that the latest data breaches are especially “surprising and egregious” because Sony Pictures has been repeatedly attacked over the years, including a 2011 hack that revealed millions of user accounts on Sony’s PlayStation video-game network.

The case filed in a federal court in Los Angeles on Monday seeks class-action status for other current and former employees whose personal information was stolen posted online.

Sony did not immediately respond to a request for comment on Tuesday morning. Highly sensitive material from the entertainment unit of Tokyobased Sony Corp. has been leaked almost daily since hackers broke into its computer networks last month. New threats and data leaks from the shadowy group calling itself Guardians of Peace, or GOP, were issued Tuesday.

The case has two named plaintiffs: Michael Corona, a former Sony Entertainment employee who left the company in 2007 and now lives in Virginia, and Christina Mathis, who left the company in 2002 and lives in California. They allege their Social Security numbers and other sensitive personal information have been leaked, exposing them to identify theft for years to come.

Their lawyers allege that e-mails and other information leaked by the hackers show that Sony’s informationtechnology department and its top lawyer believed its security system was vulnerable to attack, but that company did not act on those warnings. Corona and Mathis do not spell out how much they are seeking the case, but want

actual damages and an order requiring Sony to pay for services to monitor credit and banking services and repair damage from identify theft for at least five years.

Sony has offered employees one year of credit monitoring, the lawsuit states.

The plaintiffs claim that protection is inadequate because it can take years for thieves to exploit the personal information included in the data breach.

Corona so far has spent $700 on identity theft protection for him and his family, and Mathis has spent $300, according to the suit.

Legal experts said the case is likely the first of many that will be filed over the data breach. Sony potentially faces tens of millions of dollars in damages from a class-action lawsuit, said Jonathan Handel, an entertainment law professor at the University of Southern California Gould School of Law. “This is not a ‘bet your company’ lawsuit but it is a serious matter for Sony both in terms of dollar exposure and public perception of the brand,” Handel said. “This doesn’t look good for Sony, which after all is a technology company.” In addition to lawsuits from its ex-employees, Sony is likely to face fines from government regulators and lawsuits from actors, producers and directors who may not want to work with the studio anymore, said Steven S. Rubin, a New York cybersecurity lawyer with the firm Moritt Hock & Hamroff.

Among the materials that have been leaked are sensitive emails and studio materials that criticize actors and producers. Those with ongoing contracts with Sony could argue the company has breached their agreement and move their work elsewhere, Rubin said.

“It’s devastating. This is killing their reputation,” Rubin said. He noted that Sony may be able to get out of this, by investing in a “gold star cybersecurity approach.” However, “it’s a clear reminder for companies that are smaller than Sony, you don’t want this to happen.” AP

protections with other new features that allowed consumers to watch videos, view album covers and synch their music collections on different computers.

Federal antitrust law permits companies to make legitimate product improvements, regardless of their effect on competitors. Rogers told jurors that if they agreed with Apple on that point, they did not need to examine other arguments in the case. The jury began deliberating on Monday afternoon.

Although the case focused on an iTunes software update that blocked music sold by competitor Real Networks, Real and other rival music sellers were not parties in the case.

While the case took almost 10 years to get to trial, it nearly collapsed last week when the named plaintiffs were disqualified from the case. Apple lawyer William Isaacson told the judge that records showed that neither of the two lead plaintiffs, who are supposed to represent the other consumers affected by the case, had purchased iPod models covered by the lawsuit. A third plaintiff had withdrawn earlier.

After a last-minute scramble, Rogers agreed to add Massachusetts business consultant Barbara Bennett as the lead plaintiff. Jurors did not hear any testimony from Bennett, who told lawyers she listened to her iPod while figure skating. AP

Thursday, December 18, 2014

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Fiat’s Chrysler Group changes its name to FCA United States

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UBURN HILLS, Michigan— Chrysler Group Llc. has changed its name to FCA US Llc. The change will be largely unnoticed by consumers, affecting mostly corporate and financial communications. Chrysler-branded cars will continue to bear the Chrysler badge, as those branded Fiat will bear the Fiat badge. The move was part of Fiat Chrysler Automobiles’ renaming of its mass-market brands.

Fiat Chrysler Automobiles becomes FCA Italy SpA. The automaker said on Tuesday that the name change follows the naming convention of its parent company, Fiat Chrysler Automobiles N.V., which adopted its name in October when it listed on the New York Stock Exchange.

Chrysler and its Italian owner Fiat

SpA merged earlier this year. Fiat was granted management control and a 20-percent stake in Chrysler after it emerged from bankruptcy protection in 2009. Fiat gradually raised its stake and eventually became majority owner. The name change doesn’t impact its headquarters in Auburn Hills, Michigan, its holdings, management team, board or brands.

FCA US has more than 77,000 employees worldwide and runs 36 manufacturing plants, including 23 in the US. In Europe, Fiat Chrysler employs 89,000 people, 40 percent of the worldwide workforce, producing annual revenues about €20 billion, 23 percent of the total global revenues of €87 billion.

Fiat Chrysler has 78 plants in Europe. AP

RadioShack hires advisory firm

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EW YORK—RadioShack is bringing in FTI Consulting as an adviser in the midst of another round of cost-cutting as the troubled electronics retailer warned again last week that it may have to seek bankruptcy protection.

The company said in a regulatory filing on Tuesday that Carlin Adrianopoli, a senior managing director with FTI’s corporate finance and restructuring service, will take over as interim CFO at RadioShack.

Holly Etlin, who became interim CFO in September, will no longer serve in that position.

The company hired former Treasury Department Adviser Harry Wilson to help with its turnaround efforts in late October.

Last week RadioShack Corp. posted bigger third-quarter losses

‘Nut rage’ gives Hawaii macadamia nuts a boost

and said it would boost earnings by changing store hours and staffing, altering overtime practices and cutting its field manager staff. A trade group also ruled that RadioShack has not failed to make debt payments, despite a lender accusing the chain of violating terms on a $250-million loan.

RadioShack warned in September that it may have to seek Chapter 11 bankruptcy protection, and last week CEO Joseph Magnacca reiterated that stance, saying that there is no assurance the Fort Worth, Texas-based company can put into place a long-term solution to stay afloat.

Shares of RadioShack fell by a penny, or more than 3 percent, to 38 cents in Tuesday morning trading. AP

American Apparel fires founder, names new CEO

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In this photo taken on Friday, Cho Hyun-ah, who was head of cabin service at Korean Air and the oldest child of Korean Air Lines Co. Chairman Cho Yang-ho, speaks to the media upon her arrival for questioning at the Aviation and Railway Accident Investigation Board office of Ministry of Land, Infrastructure and Transport in Seoul, South Korea. The chairman of Korean Air Lines Co. apologized on Friday for the behavior of his adult daughter who delayed a flight in an incident now dubbed “nut rage.” AP

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ONOLULU—A Korean Air Lines executive’s tantrum over bagged nuts in a first-class cabin is drawing enough attention to give Hawaii’s macadamia nut industry a boost.

Cho Hyun-ah, an airline vice president of cabin service and daughter of the company’s chairman, ordered a flight attendant off a December 5 flight from New York City after she was served macadamia nuts in a bag instead of on a plate.

The incident dubbed “nut rage” imploded her career, embarrassed her family and led to an unexpected boom in sales of macadamias in South Korea.

Some producers told the Honolulu

Star-Advertiser that is also helping Hawaii’s $38-million macadamia nut industry, which accounts for more than 700 farms and eight processing plants.

“Any type of publicity is good for the industry,” Hawaii Macadamia Nut Association President John Cross said. “Macadamia nuts are not well-known outside of Hawaii and the West Coast. If they were as well-known in the Central and Eastern US, there wouldn’t be enough nuts to supply demand.”

Almost all of Hawaii’s macadamia nuts come from its Big Island.

They are also grown in Australia, Central America and South Africa.

“If anything should be served on a silver tray, it should be maca-

damia nuts,” Richard Schnitzler, president of Hamakua Macadamia Nut Co., said with a laugh, referring to the inflight outburst.

“It’s a high-quality nut. It’s understandable how that can happen.”

He said it would be difficult to track a recent surge in sales because sales are always up during the holiday season.

Macadamias are now a household name in South Korea, and with curiosity about their taste piqued, sales are booming.

South Korea’s largest online shopping retailer, Gmarket, owned by eBay, said macadamia nut sales jumped 20 times from one week to the next earlier this month. AP

OS ANGELES—American Apparel has fired founder Dov Charney and named longtime fashion executive Paula Schneider to be its next CEO. The Los Angeles-basedcompany’s board voted to oust Charney as CEO in June, citing allegations of misconduct. He was put under suspension, but still served as a consultant to the company. American Apparel said Tuesday that it has terminated his position “for cause” after an internal investigation.

Messages left with a lawyer who has represented Charney this year were not immediately returned.

American Apparel Inc., which Charney founded in 1998, manufactures clothes and sells them in 245 of its own retail stores in 20 countries and has about 10,000 employees. It is famous for selling American-made goods and for its risque advertising.

Charney has been the subject of lawsuits that allege he had inappropriate sexual conduct with female employees. He has said he had consensual sexual relationships with workers.

American Apparel said on Tuesday that a special committee of its board decided, based on the results of an internal investigation conducted by FTI Consulting, that “it would not be appropriate for Mr. Charney to be reinstated as CEO or an officer or employee.” The company has suffered financially. It has recorded annual losses since 2010 and reported three quarterly losses this year. Its stock has dropped 53 percent in 2014.

Schneider, who officially starts as CEO on January 5, has been a senior executive at retail and clothing companies, including Warnaco, Gores Group and BCBG Max Azria.

American Apparel has operated under two interim CEOs since Charney’s ouster, most recently Scott Brubaker, who will continue in that role through the end of the year.

Shares rose 5 cents, or 8.6 percent, to 63 cents in after-hours trading.

The stock closed up 3 cents at 58 cents on Tuesday. AP

world companies

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apple wins class-action lawsuit over ipod prices Apple wins class-action lawsuit over iPod prices

By Cai U. Ordinario

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OIL NEARING 5-YEAR LOW AS RUSSIA ECHOES OPEC

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il in New York traded near a five-year low as Russia reiterated that it will keep crude production steady next year, echoing the Organization of Petroleum Exporting Countries’ (Opec) strategy to refrain from curbing supply to tackle a global surplus.

Futures fell as much as 2.4 percent, after sliding below $54 a barrel on Tuesday for the first time since May 2009. Output from Russia, the world’s largest crude producer, will be similar to this year’s 10.6 million barrels a day, according to Energy Minister Alexander Novak. Iran is said to be offering shipments to Asia at the deepest discount in at least 14 years, taking a cue from Saudi Arabia in cutting price differentials.

Oil has slumped 43 percent this year, as a surge in shale drilling lifted US output to the fastest pace in three decades amid slowing world demand growth.

Leading members of the Opec, such as Saudi Arabia, have resisted calls from smaller producers, including

PESO exchange rates n US 44.8020

See “Oil,” A2

PAPAL planning The various sectors under the Pope Francis Sa Pilipinas, Media ng Bayan banner meet at the Manila Hotel on Wednesday to craft plans and programs related to the state and apostolic journey of the charismatic Pope Francis beginning January 17 next year. Key entities include the Presidential Communications Operations Office, PTV-4, IBC 13, the Philippine Information Agency, Radyo ng Bayan, RPN Ronda Radyo nationwide, DWIZ nationwide, Home Radio FM nationwide, the BusinessMirror, Philippines Graphic, Manila Bulletin Group and the Pilipino Mirror. From left, Art Samaniego, Manila Bulletin Tech editor; Manila Bulletin AVP and Marketing Head JV Dimayuga; Manila Hotel AVP for PR and Corporate Communications Nian Rigor; BusinessMirror VP for Corporate Affairs Frederick M. Alegre; BusinessMirror President Benjamin V. Ramos; Communications Secretary Herminio B. Coloma Jr.; Manila Bulletin Chairman Basilio Yap; PCOO Undersecretary Jesus Yu; Manila Hotel President Joey Lina; BusinessMirror Publisher T. Anthony Cabangon; Manila Bulletin Vice Chairman Emilio C. Yap III; Deedee Siytangco; Sandy Siytangco; and PTV-4 General Manager Cleo Dongga-as.

S&P: Oil savings should be spent to fuel economy

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By Bianca Cuaresma

he lower oil prices globally can speed up the Philippines’s gross domestic product (GDP) expansion rate, if the country would opt to spend the unexpected “windfall” from the savings generated from the considerable cut in fuel cost, an international credit watcher said.

In a recent statement, Standard and Poor’s (S&P) Ratings Services said the lower oil prices can give a “welcome boost” to Asia-Pacific countries—with the largest effect to be felt in the Philippines, Hong

Kong, China and Thailand.

However, the ratings agency highlighted that the country must be able to spend these additional windfall—or the sudden, unexpected piece of financial gain—from lower oil prices to fuel further the economy rather than set it aside.

“Spending the windfall can raise GDP in key economies, while saving it will provide little or no stimulus to growth,” S&P’s Asia Pacific chief economist Paul Gruenwald said.

“If the oil-price windfall is largely spent, the effects on GDP are highest in the Philippines, Hong Kong, China and Thailand,”

S&P said.

The ratings agency further said in this group of economies, a one-year drop in Brent Crude to $86 per barrel could raise output by a third of a percentage point.

Other countries, such as India and South Korea, will benefit from the lower oil prices but, at a lower rate, contributing about a fifth of a percentage point to their GDP. The ratings agency said the countries in the region must take advantage of the potential benefit of the lower prices of oil to boost their output expansion for the year See “S&P,” A2

n japan 0.3851 n UK 70.5452 n HK 5.7780 n CHINA 7.2374 n singapore 34.3943 n australia 36.8104 n EU 56.0787 n SAUDI arabia 11.9377 Source: BSP (17 December 2014)

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News BusinessMirror

Thursday, December 18, 2014

news@businessmirror.com.ph

ADB cuts PHL growth forecast

Oil. . . continued from a1

Venezuela and Ecuador, to reduce quotas, to stem the price drop. “Opec won’t make a move unless the US cuts its production first, and for now it looks like the game of chicken will most likely continue through next year,” Kang Yoo-jin, a commodities analyst at Woori Investment & Securities Co. in Seoul, said by phone. “As oil prices are slumping, it seems to be a strategic decision for producing countries, including Opec and Russia, to keep their output levels unchanged.”

West Texas Intermediate for January delivery declined as much as $1.32 to $54.61 a barrel in electronic trading on the New York Mercantile Exchange and was at $55.71 at 4:10 p.m. Singapore time. It gained 2 cents to $55.93 on Tuesday. Total volume traded was about 82 percent above the 100-day average. Prices are set for the biggest annual loss since 2008.

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Socioeconomic Planning Secretary Arsenio M. Balisacan said even if the ADB has cut its forecast for this year, posting a growth of 6 percent was respectable.

This estimate is below the government’s full-year target of 6.5 percent to 7.5 percent this year. Balisacan earlier said achieving the low end of the target would already be “very challenging” this year.

Balisacan estimated that the economy needed to grow by 8.2 percent in the fourth quarter to attain the low end of the target.

“Even at 6 percent and 6.4 percent for next year is considered a very respectable achievement if you have seen those numbers, considering that even at 5.8 percent, the number in the first three quarters of this year is very respectable in the international community. We remain among the bright spots in the Asian region,” Balisacan said in a briefing on Wednesday.

The ADB, however, maintained its growth estimate for the Philippine economy at 6.4 percent in 2015.

The country’s economic growth next year, the bank said, will be driven by strong household consumption bolstered by steady growth in remittances and increases in domestic employment.

Russian economy

Brent for February settlement was 29 cents higher at $60.30 a barrel on the London-based ICE Futures Europe exchange. The January contract expired on Tuesday after decreasing 2 percent to $59.86. The European benchmark crude traded at a premium of $4.11 to WTI for the same month.

Brent’s 46-percent collapse this year is contributing to a currency crisis in Russia, which relies on energy exports for half its budget. Sanctions imposed by the US and European Union over the conflict in Ukraine also spurred Russia’s largest capital outflows in six years as its economy nears recession.

The price of oil “will stabilize itself,” Novak said at the Gas Exporting Countries Forum in Doha on Tuesday.

Bloomberg News

Mu-X. . . continued from a8

S&P. . . continued from a1

year-to-date, against 2,100 units in 2013.

Also a major factor are IPC’s Category 4 and 5 trucks, which boosted the company’s truck sales total to a 25.5-percent growth with 3,093 units sold from January to November compared to 2,465 units in the same period in 2013.

Overall, the results put IPC at a 17.6-percent growth from last year, or 12,644 units from January to November this year versus 10,749 units from the same months last year, keeping the company on track to achieve its annual sales target.

and the year ahead.

“The sharp decline in oil prices has the potential to give a timely GDP boost in Asia Pacific. Momentum in the region has been flagging in late2014 as Chinese growth has slowed and global trade has yet to rebound.

So even a modest boost to activity will be welcome,” S&P said.

“The key is whether the beneficiaries

Catherine N. Pillas

This can also be supported by a pick up in government spending, which was the main drag in economic growth this year.

Higher government spending is expected next year following the start of election spending in preparation for the 2016 polls.

Balisacan said the increase in household consumption fueled by overseas Filipino workerremittanceswouldboostthecountry’s fourth-quarter growth to above 5.3 percent.

In a year-end briefing on Wednesday, Balisacan said the economy needs to grow by 6.6 percent in the last quarter to attain a full-year growth of at least 6 percent this year.

“So far, the indicative numbers based on the available information at this time is expectedly better than the third quarter,” Balisacan said.

Balisacan added that another growth driver in the last three months of 2014 includes tourism. He said the country will likely achieve its 6.8 million tourismarrival target this year.

Apart from this, the Comprehensive Rehabilitation and Recovery Plan ensured that construction and rehabilitation in the Yolanda corridor, particularly in the last quarter of 2014, will also provide a boost to growth.

Balisacan noted that resettlement projects account for the biggest slice of the proposed budget at P75.67 billion.

To this end, Balisacan said the Department of Budget and Management has released P51.98 billion from the national budget for the rehabilitation plan in the Yolanda corridor since November 2013.

Balisacan said growth in the last quarter of the year will not be affected by the damage caused by Typhoon Ruby (international code name Habagat) since it only amounts to around 0.03 percent of the country’s GDP. He added that any damage caused by the typhoon in the agriculture sector will also have minimal impact on fourth-quarter economic growth because the farm sector only accounts for 11 percent of the country’s GDP. “Considering our constant battle with climate-related disasters, along with the uncertainties in the global economy, we can say that the Philippine government has remained resolute in its stance to strengthen the foundations for sustained and inclusive growth through wide-ranging reforms in governance and the economy,” Balisacan said.

In the third quarter, the government’s un-

derspending cut the country’s third-quarter economic growth to 5.3 percent. This was the slowest since the third quarter of 2011, when the economy grew 3.2 percent.

Balisacan said the chilling effect created by the unfavorable decision of the Supreme Court on the Disbursement Acceleration Program and the recent issuances of disallowance by the Commission of Audit were among the major factors that caused public spending to contract by 2.6 percent in the third quarter.

Balisacan said this chilling effect has also caused delays in various projects, including those targeted to be implemented in Yolanda-affected areas.

However, Balisacan said the negative impact on the government’s spending is a result of the institutional changes that the Aquino administration is implementing.

For the whole of Asia, the ADB said growth is expected at 6.1 percent in 2014, the same as in the previous year, but a slight downward revision from the 6.2-percent forecast in Asian Development Outlook 2014 Update.

The regional economy is projected to expand a bit more quickly in 2015 at 6.2 percent, but still 0.2-percentage-point short of the Update forecast.

of the oil-price windfall spend it or save it. And that, in turn, depends on their expectations regarding the future direction of oil prices,” it added.

In the country, the most immediate effect to the big rollback in oil prices is the lower cost of transportation, particularly in jeepney fares, as the Land Transportation Franchising and Regulatory Board implemented a P1 cut in minimum fare

just this month.

The Asian Development Bank (ADB) also said the decline in oil prices will boost growth in many countries in Asia, particularly net oil importers like the Philippines.

The price of Brent crude declined in the second half of 2014 to below $64 per barrel on December 11. The year-to-date average of $101 per barrel is 6.8 percent

lower than the 2013 average price and much lower than the $105 earlier forecast by the ADB. “Simulations using the global projections model suggest that developing Asia, where most economies are net oil importers, could see an additional 0.5 percentage point of growth in 2015 if prices remain favorable to buyers,” the ADB said.

3-DAY EXTENDED FORECAST

TODAY’S WEATHER

DECEMBER 18, 2014 | THURSDAY

Trough of Low Pressure Area is an elongated region of LPA. It can bring in cloudy conditions and precipitation or bring in cold air mass.

TAIL-END OF A COLD FRONT AFFECTING CENTRAL AND SOUTHERN LUZON.

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

Northeast Monsoon locally known as “Amihan”.

It affects the eastern portions of the country.

It is cold and dry; characterized by widespread cloudiness with rains and showers.

DEC 19 FRIDAY

DEC 20

SATURDAY

METRO MANILA

24 – 29°C

24 – 29°C

TUGUEGARAO

21 – 26°C

22 –26°C

DEC 21 SUNDAY

LAOAG

22 – 29°C

22 – 29°C

BAGUIO TUGUEGARAO CITY 21 – 25°C

SBMA/ CLARK

BAGUIO CITY 15 – 23°C SBMA/CLARK 24 – 31°C TAGAYTAY CITY 20 – 27°C

METRO MANILA 24 – 30°C

TAGAYTAY

15 – 23°C

24 – 30°C

20 – 27°C

15 – 22°C

24 – 30°C

21 – 28°C

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

PUERTO PRINCESA CITY 24 – 32°C

ILOILO/ BACOLOD 24 – 30°C

TACLOBAN CITY 24 – 30°C

METRO CEBU 25 – 31°C

ZAMBOANGA CITY 24 – 33°C

PUERTO PRINCESA

ILOILO/ BACOLOD CAGAYAN DE ORO CITY 24 – 31°C METRO DAVAO 25 – 30°C

24 – 29°C

23 –28°C

23 – 31°C

24 – 30°C

22 – 26°C

TACLOBAN

24 – 29°C

24 – 30°C

24 – 30°C

22 – 28°C

CAGAYAN DE ORO

24 – 32°C

25 – 32°C

25 – 32°C

METRO DAVAO

25 – 30°C

25 – 29°C

25 – 30°C

25 – 34°C

25 – 34°C

25 – 34°C

16 – 22°C

24 – 29°C

ZAMBOANGA SUNRISE

SUNSET

MOONSET

MOONRISE

6:14 AM

5:30 PM

2:21 PM

2:23 AM

21 – 28°C

23 – 28°C

HALF MOON NEW MOON

24 – 30°C

24 – 29°C

CELEBES SEA

LOW TIDEMANILA HIGH TIDE SOUTH HARBOR

DEC 22

2:44 AM

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Light rains

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(AS OF DECEMBER 17, 5:00 PM)

LAOAG CITY 23 –28°C

DEC 19

METRO CEBU

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0.29 METER

Partly cloudy to at times cloudy with rainshowers

The Nation BusinessMirror

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Cops to inspect UV vans, cabs at checkpoints

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By Rene Acosta

HE National Police said on Wednesday that it will inspect taxicabs and UV Express vans in checkpoints as part of its intensified campaign against criminality.

The decision to subject these vehicles to checkpoint was prompted by the upsurge in crimes, particularly robbery holdup involving for-hire vehicles in Metro Manila.

The National Police Directorial Staff chief, Deputy Director General Marcelo Garbo Jr., has ordered police commanders to include UV vans and taxicabs in the inspection of motor vehicles at checkpoint to ensure commuters’ safety, especially during the holiday season.

The National Police move complemented the instruction of Interior Secretary Manuel Roxas II to the Metro Manila police command to set up checkpoints for taxis and commuter vans along major thoroughfares in Metro Manila. It was not clear if Roxas has the authority to order the police since he is not in the chain of command of the force.

Roxas’s directive was prompted by reports of alleged attempts to abduct children on the streets by men in a rental white van.

The owner of the rental van linked to the alleged abduction has already surrendered the vehicle to the Manila Police District but the assailants remain at large.

The police have also acknowledged reports of unscrupulous taxi drivers who spray sleep-inducing chemicals to make female passengers drowsy, making it easier for them to get robbed or even abducted.

There were also reports of robberies involving taxi drivers and their cohorts, either hiding in the trunk or on the front passenger side, victimizing women. Garbo also instructed police officers to be courteous when approaching drivers as well as passengers to prevent unnecessary panic.

Lawmaker: Smartmatic should be blacklisted

A

By Jovee Marie N. dela Cruz

PARTY-LIST lawmaker on Wednesday assailed the Commission on Elections (Comelec) for choosing Smartmatic-Total Information Management (TIM) Corp. to be the lone bidder for the contract to supply direct recording electronics (DRE) machines for the 2016 national elections.

Party-list Rep. Terry Ridon of Kabataan said the Comelec and Smartmatic should resolve first several issues with the precinct count optical scan (Pcos) machines that were used in the last two elections.

“There are still unresolved anomalies with regard to the Pcos machines used in past elections. Instead of awarding another contract to Smartmatic-TIM, the Comelec should have blacklisted the joint venture,” Ridon said.

The Comelec Bids and Awards Committee earlier announced that Smartmatic-TIM is the only supplier that passed the first stage of the bidding procedures on eligibility.

“The Comelec cannot simply discount the continuing objections of technical experts led by AES [Automatic Elections System] Watch on the competency of the machines previously supplied by Smartmatic to ensure the sanctity of the ballot,” the lawmaker said.

He added that awarding the DRE

machines contract to Smartmatic-TIM will “seriously affect the credibility of the coming presidential elections.”

“How can the Filipino people again put its trust on the automated elections if Comelec is again procuring the machines from an anomalous supplier?” he asked. Ridon said, “Even the Comelec knows that SmartmaticTIM should be blacklisted.”

“The only thing preventing them from doing so is the fact that such move will confirm reports of election rigging in past automated polls,” Ridon added.

‘Strictly implement AES law’

NATIONALIST People’s Coalition Rep. Sherwin Gatchalian of Valenzuela City also on Wednesday called on the Comelec to strictly adhere to the provisions of Republic Act (RA) 8436 (Automated Election System law) to ensure its implementation to the letter during the 2016 presidential elections.

Gatchalian made the statement

Explain presence of banned items at NBP, de Lima orders prison execs

By Joel R. San Juan

J

USTICE Secretary Leila de Lima has ordered New Bilibid Prison (NBP) officials and personnel assigned at the prison’s maximum-security compound—from superintendent up to the jail guards—to explain why they should not be administratively charged for their failure to stop illegal drug trade and other prohibited acitivities inside the penitentiary.

In an interview, de Lima said she has asked Bureau of Corrections (BuCor) Director Franklin Bucayu to submit to her the names of officers and personnel assigned at the maximum-security compound including its superintendent, Roberto Rabo.

“I will also issue show cause order, will require all of them to explain.... We will determine based on their reply who should be held administrativbely liable,” de Lima said.

De Lima led a team from the National Bureau of Investigation (NBI), National Police Special Force and the Philippine Drug Enforcement Agency in a surprise inspection of the detention cells at the maximum security compound on Monday which yielded illegal drugs, prohibited gadgets and other banned items such as a sex doll and pornographic materials.

The team also discovered a bath tub, a 48-inch flat-screen television set, a Playstation 4, dining sets,

close circuit television camera, DE LIMA: “I will signal jammer, also issue show cause Internet broadorder, will require all band sticks, sevof them to explain.... eral firearms, as We will determine well as P175,000 based on their reply a nd at lea st who should be held $2,000 in cash administratively in some of the liable.” detention cells.

De Lima quickly raised the possibility that some NBP officials and personnel have knowledge of the presence of the prohibited items and may be in collusion with other inmates involved in illegal drug trade.

This prompted de Lima to temporarily transfer 19 convicted drug lords to the NBI in an attempt to paralyze illegal drug trade inside the penitentiary.

The convicted drug lords will remain at the NBI until the BuCor has finished the construction of a segregation facility intended for them.

The Department of Justice chief, however, said her order does not cover Bucayu considering that he was part of those who planned the surpise inspection.

“Many are asking about [the liability of] Director Bucayu, but at this point I’m holding judgment because in the first place he was with us during the planning,” de Lima said.

Munti raid had Aquino OK—Palace

By Butch Fernandez

P

Editor: Dionisio L. Pelayo • Thursday, December 18, 2014 A3

RESIDENT Aquino sanctioned the seizure of cash hoards, drugs and loose firearms government agents found in a surprise raid at the posh prison cells of convicted drug lords at the New Bilibid Prison (NBP) in Muntinlupa, Communications Secretary Herminio B. Coloma Jr. said.

Coloma confirmed Justice Secretary Leila de Lima’s claim that Aquino, expressing concern, gave “specific instructions” upon getting reports on the seized items during the dawn raid at the national prison compound on Monday.

“Iyong pagsasagawa ng malawakan at malalimang pagsisiyasat ay bahagi ng mga repormang ipinapatupad ni Pangulong Aquino alinsunod sa patakarang daang matuwid at good governance,” Coloma said.

He added that authorities are still assessing their findings even as prison officers were given marching orders to “dismantle” the imprisoned drug lords’ swanky digs at the NBP compound and move them back to regular prison cells.

“Sa natunghayan kong pahayag ni Secretary de Lima kaninang umaga... mayroong specific instructions ang Pangulo

hinggil doon sa mga nadiskubreng firearms at iyon ang kanyang ikinabahala,” Coloma said. “Samantala, patuloy pa rin ang pag-aaral sa mga kaganapan doon, iyong pag-dismantle ng mga kubol na mayroong mga kasangkapan na maaaring ginagamit in violation of existing rules ng national penitentiary.”

He said NBP authorities were also ordered to strictly enforce rules against illegal activities being perpetrated at the prison compound with wardens looking the other way.

“Ayon sa paliwanag ni Secretary de Lima, mahabang panahon din ang iniukol upang mapag-aralan ang sitwasyon at maisagawa ang epektibong raid na isinagawa noong Lunes, na kung saan ay nasabat ang mga nagsasagawa ng mga umano’y iligal na aktibidad na iyan,” Coloma told reporters. “Na-isolate na sila, nakumpiska iyong salapi at iyong mga iba pang kasangkapan na maaaring ginagamit sa patuloy na mga iligal na aktibidad.”

Coloma indicated that Executive branch officials are closely monitoring developments at the NBP to make sure reforms ordered by the President are carried out, without exemptions. “Kaya iyan ang tinututukan natin ngayon, ang maging ganap iyong pagsabat sa mga iligal na aktibidad, at sa pahayag na rin mismo ni Secretary de Lima, iyong maging drug-free ang national penitentiary.”

amid calls by election watchdogs for a return to the manual system of voting and counting following the alleged widespread glitches in the automated precinct-level voting and counting in 2010 and 2013 under Smartmatic, that supplied the controversial Pcos machines.

The AES Watch and Citizens for Clean and Credible Election wanted an automated system that guarantees accuracy, safety and speed. One idea is for manual balloting and tallying at precincts, which take only three hours, cost little, and could be watched by voters. Canvassing and transmission, however, would be automated.

“We cannot go back to manual voting and counting at the precinct level.

This is like going back to the Dark Ages. What the Comelec should do is to be more transparent and follow the security features of the automatedelections system,” Gatchalian said.

He added that it is the duty of the poll body to correctly implement the letter of the AES law, which has five operative principles, namely: free, orderly, honest, peaceful and credible elections.

He said that with the passage of RA 8436, Comelec should have more information-technology (IT)capable personnel, but a review of the commission’s staffing pattern will show that there are so few, which is the reason why Comelec outsources IT-capable personnel to man the computers during elections.

During the 2010 presidential elections, various security features were integrated into the automated system but were not implemented.

One of the programs removed was for the Pcos to inform the voter that the machine has received the ballot followed by designating a voter number on the queue.

“The Comelec also failed to explain why the lamp that determines the veracity of the voter’s signature was removed when this is among the controls which the AES law provides,” Gatchalian said.

IT professionals join clamor vs Smartmatic

A 700-strong organization of IT professionals has joined the clamor for the Comelec’s Bids and Awards Committee (BAC) to declare as ineligible Smartmatic-TIM to participate in the bidding and refurbishment of counting machines for use in the 2016 national polls.

In a letter to Comelec-BAC Chairman Helen Aguila-Flores, the Philippine Computer Society (PCS) questioned the panel’s decision to uphold the elgibility of Smartmatic-TIM to participate in the bidding despite the company’s lack of several eligibility documents.

PCS President Leo Querubin particularly cited the lack of Tax Clearance Certificate of Jarltech, one of Smartmatic’s joint-venture partners, and its deficient Articles of Incorporation.

“The absence of the Jarltech’s Tax Clearance Certificate and the deficient Article of Incorporation of Smartmatic-TIM are more than enough grounds to disqualify Smartmatic,” the group said.

Querubin recalled that during the pre-bid conference Flores reminded

the vendors that purchased the eligibility documents to be very careful about the document they will submit because a deficient document will disqualify them.

Querubin said Flores even reminded the vendors that there were other bidders that were disqualified because one of their documents was not notarized.

He said Flores’s reminder to the bidders made him confident that the BAC will be stringent in scrutinizing and appreciating the documents submitted by the bidders.

However, Querubin said he was surprised to find out that the Comelec-BAC declared that Smartmatic-TIM hurdled the first level of the ongoing bidding process for the lease of 23,000 Optical Mark Reader voting machines to be used in the 2016 elections despite questions on the eligibility documents it submitted.

It can be recalled that the Comelec-BAC voted 3-2 declaring Smartmatic eligible to bid, while its only rival Indra Sistemas S A got a unanimous vote from the committee after submitting complete documents.

Flores, however, noted being unanimous or split decision does not really matter once the twostage bidding process reaches the second level.

The PCS also insisted that Smartmatic should also not be allowed to participate in any bidding activities in the Comelec considering that its Articles of Incorporation was “for the automation of the 2010 national and local elections.”

With Recto Mercene and Joel San Juan

Economy

BusinessMirror Editors: Vittorio Vitug and Max V. de Leon • Thursday, December 18, 2014 A5

news@businessmirror.com.ph

Meralco extends its ILP sign-up period until Jan.

T

By Lenie Lectura

HE Manila Electric Co. (Meralco) is extending the period within which interested participants of Interruptible Load Program (ILP) can sign up with the utility firm.

“Yes, we will continue to invite captive and contestable customers to participate and are targeting to formally sign up the ones currently under negotiations before January 31, 2015,” Meralco Utility Economics Head Lawrence Fernandez said in a text message on Wednesday.

The ILP is a government initiative meant to address the looming power shortage next year.

As of December 5, 141 companies have signed up for the program. This represent 593 megawatts (MW) of committed interruptible load (CIL) capacity.

Of the total number if ILP participants, 105 are retail electricity suppliers (RES) customers and 36 are Meralco customers. The RES have committed a total of 402 MW of capacity and 191 from Meralco customers.

Meralco continues to encourage RES and its customers to sign up with the program, which works by calling on business customers with loads of at least 1 MW to run their own generator sets, if needed, instead of drawing power from the grid.

With the ILP, power supply from the grid that will not be consumed by participating customers will be available for use by other customers within the franchise area. Through this, the aggregate demand for power from the system will be reduced to a more manageable level, helping ensure the availability of supply during the anticipated power crisis next year.

The program will only be part of the answer to the looming power shortages next summer. The ILP, likewise, does not guarantee zero brownouts, as it

will only be implemented during the red-alert level of the power supply. A red alert means there is a supply deficiency.

Meanwhile, Energy Secretary Carlos Jericho L. Petilla stressed the importance of implementing the ILP during yellow alert, or when power supply is thin and not during red alert.

The catch, however, is that consumers may have to shoulder an additional 8-to-10 centavo per kilowatt-hour when the said program is implemented during a yellow alert.

“The important thing here is to have power. If the ILP kicks in during red alert, then definitely brownouts will happen first before the program is implemented. That’s why I am requesting the Senate to allow ILP to run on yellow alert,” Petilla said. The House of Representatives has decided that the government will shoulder the additional cost for ILP participants whenever the program runs during red alert.

“In the House version of the joint resolution, the additional cost shall be passed on to the government. But we can’t wait for a red alert to happen first. However, if the cost is passed on to the consumers, the Energy Regulatory Commission [ERC] would have to conduct public hearings first, and we are not sure if the ERC can finish the hearings by March 1,” Petilla said.

The energy chief has proposed to the Senate for the ERC to do away with the public hearings

and allow the Department of Energy (DOE) to come up with the implementing guidelines for its proposal.

“It is my hope that it won’t be passed on to the consumers. But if it is passed on, then I am asking the Senate to let the DOE come up with certain guidelines because the ERC may not finish the hearings by March next year,” Petilla said.

Megaworld’s Geri to build first condo project in Southwoods

G

By VG Cabuag

lobal Estate Resorts Inc. (Geri) on Wednesday said it is building its first residential condominium in its sprawling property in Southwoods City in Cavite-Laguna area.

The company said in a news statement that its project, called Holland Park, will be a cluster of two low-rise condominium that will be surrounded by the Manila Southwoods golf course.

“These residences right at the heart of the booming Southwoods City CBD [central business district] will be perfect for families finding a

refreshing abode surrounded by the lush greeneries of the township’s own golf course,” said Rachelle Peñaflorida, vice president for sales and marketing of Megaworld Global-Estate Inc. The project will be a low-density community with an initial of 161 units, consisting of studios, onebedroom, two-bedroom and three-

bedroom units, she said.

Holland Park, within walking distance from the proposed Southwoods Mall, as well as from the office and business-process outsourcing buildings that will soon rise in the township, is expected to be completed in 2017.

“The rising demand for property in Southwoods City prompts us to launch the first condominium project in the township, just a few months after we reached 90-percent sold out for Pahara,” Peñaflorida said.

Pahara is a 26-hectare upscale residential village within Southwoods City and was launched in March.

Southwoods City, on the other hand, was formerly known as Manila Southwoods, and is poised to become the next central business district in the southern Metro Manila.

It will have its own cyberpark, malls, schools, church, open parks, leisure facilities, a weekend market,

transport hub, as well as residential villages and golf course.

Southwoods City is one of the 15 townships developed by Megaworld and its subsidiaries.

Geri posted a net income of P319.9 million for the first nine months of the year, some 37 percent higher than last year, on strong sales of its flagship projects in Boracay, Tagaytay and Cavite.

Reservation sales rose 43 percent to P10 billion from last year’s P7 billion, it said. “Geri is on track for another record year of net profits in 2014,” said the company’s president, Ferdinand Santos.

Aside from the three sprawling projects of Geri, the company announced that it will be spending some P10 billion in five years to develop its property in Las Piñas City into a mixed-use residential and commercial estate.

DOE eyes to develop web site or app to track gas pump prices nationwide

T

HE Department of Energy (DOE) is eyeing to put up a web site or develop a mobile application that will illustrate weekly fuel prices for all gasoline stations throughout the country.

“We are experimenting on this.

Every time there is a change, they

have to inform us and automatically, without any intervention, these changes will be shown on the web site. It’s either an application or a web site. We are still studying this,” said Energy Secretary Carlos Jericho L. Petilla said.

There are over 6,000 gasoline sta-

tions nationwide, according to the DOE. Petron Corp., the country’s largest oil refining and marketing company, has 2,200 service stations.

Energy Undersecretary Zenaida Monsada said there are ongoing consultations with the representatives of all oil firms. “We have had initial

discussions with the oil companies.

We still have to conduct consultations with the dealers next year. This is, indeed, very tedious but this is a way to empower the motorists. There is transparency, and this is going to be very helpful to the consumers,” Monsada said. Lenie Lectura

Opinion BusinessMirror

A6 Thursday, December 18, 2014

Editor: Alvin I. Dacanay

editorial

For whom the cell tolls

T

HERE is no sadder proof of how low this government has become than this: criminals getting the red-carpet treatment while in prison.

First, it exposes who—and what—the public is in the eyes of the government. We seem to be mere playthings, fools to be led by the nose.

Get real. The exposé is not new. The special treatment of rich and powerful inmates has been an open secret for decades. Talk of luxurious cells with air-conditioning and other hotel-like amenities have filled barbershop conversations for as long as can be remembered.

Fact is, it’s almost impossible to believe that only the government is in the dark about the illegal activities perpetrated inside the New Bilibid Prison.

Think for a second: How can the government not know? There are currently 22,000 inmates in a facility designed to hold only a maximum of 5,000. Certainly, in places as cramped as that prison, word gets around.

Let’s not even leap over the fence. What about the New Bilibid officials? What about the warden and his band of prison guards?

Not being aware of what’s going on inside their area of jurisdiction is, in itself, a crime of neglect. But is it really neglect we are seeing here, or just plain old money talking?

It has been reported for the longest time that sex workers regularly come to New Bilibid. One way or the other, it can be understood.

But to have first-class amenities, including a theater ensemble, and a “red light” district within the compound speaks loudly of our warped idea of justice.

One reality is how inmates can wiggle their way out of the compound freely and without catching attention. Jose Antonio C. Leviste’s unauthorized trips outside the compound while he was an inmate were serious enough to attract attention. Of course, he was a governor of Batangas province. But how many dozens more, behind the scenes, enjoy such a “privilege”?

Let us remember, justice provides a nation with a consistent way of dealing with problematic individuals or groups. Impunity has economic consequences. For one, it disembodies our sense of certainty, knowing at the back of our minds that criminals can roam freely, despite being judged as guilty.

Therefore, how can a nation pull itself together, socially and economically, while the lawless run scot-free?

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12182014

The world burns as the Philippines sleeps John Mangun

OUTSIDE THE BOX

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AWAIIAN hurricanes—or what we in the Philippines call typhoons—are relatively rare events. While there are many large storms in that part of the Pacific Ocean, the Hawaiian islands usually do not suffer any damage from the wind, as the greater problem comes from storm surges.

In 1982 Hurricane Iwa directly hit the islands of Niʻihau, Kauaʻi and Oʻahu. The storm was the islands’ first significant hurricane since 1959. Because a major storm is so rare, it was party time on the Waikiki Beach, with all the bars and restaurants holding storm parties in anticipation of the hurricane making landfall in the late evening. The winds were 150 kilometers per hour.

There was severe flooding, with most of those bars and restaurants left in knee-deep water.

Wanting to be ready for the allnight party, I took a late-afternoon nap and slept through the hurricane.

Everyone else had great stories to tell of the destruction the storm wreaked. Buying an “I survived Iwa” T-shirt was the best I could do.

Twice this week, my normal sleep time passed while I was watching

the destruction at the global financial markets. On each of those days, there were no bold headlines shouting what had happened the night before in the West.

No one took significant notice that the Russian central bank, in an unprecedented move, had raised its interest rate from 10 percent to 17 percent to protect the value of the ruble. Not one commentator noticed that the Dubai Financial Market General Index was down 7 percent.

The Philippines had slept through the typhoon.

Certainly, there has been talk about crude-oil prices being down 12.5 percent in a week. But this has been mostly in the context of local gasoline prices and the decrease in jeepney fares.

Meanwhile, at the Philippine Stock Exchange, we have not seen

the massive daily swings for the last two weeks since this time last year. The experts are having a very difficult time trying to explain it all. Some of the analyses offered are just plain nonsense that show a lack of historical perspective and experience. The current situation mimics the 1997 Asian financial crisis. If you were there, you know what I mean. Many were not, and do not understand.

If lower oil prices are good for the Philippine economy—and they are—then why is the stock market on panic mode? If everyone around the world is rushing to hold United States dollars, why isn’t the peso crashing?

If the crash in crude-oil prices is a type of “black swan” event, then the swan is laying golden eggs for the Philippines. Philippine inflation tracks crude-oil prices, as does the gross domestic product growth rate.

You can check the data for yourself at a number of websites that will provide you the information.

The major Middle Eastern oil producers do not intend to do anything to stem the drop in oil prices. Saudi Arabia said it was comfortable to let prices fall even to the $40-perbarrel area; so did Russia. Kuwait said there would be no further discussion about a cut in oil production until June 2015.

The Philippine stock market is

Another Malala moment for Pakistan

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WO years ago a Taliban gunman boarded a school bus in Pakistan and fired a shot that outraged the world. He seriously wounded 14-year-old Malala Yousafzai. She recovered, became a powerful voice in the fight against Taliban extremism and won the Nobel Peace Prize this year.

On Tuesday another Malala moment staggered Pakistan—and the world.

Taliban gunmen stormed a military school in Peshawar and slaughtered more than 140 people, mostly children. This was no random school.

These students were the children of Pakistani Army officers and soldiers, who are leading a campaign to crush the Taliban in their tribal badlands.

The Taliban gunmen slipped through a back gate and opened fire on children in classrooms and hallways. The terrorists bolted from room to room, shooting children at will. Some students tried to hide under their desks. They were killed where they hid. Other students died when the terrorists lobbed hand grenades or detonated suicide vests.

The jihadists showed no mercy: Most of the children were shot in

the head. Taliban leaders claimed the attack was revenge for the Pakistani Army’s incursions into their tribal areas and for United States drone strikes against their leaders.

“We selected the army’s school for the attack because the government is targeting our families and females,” a Taliban spokesman said. “We want them to feel the pain.”

This massacre of innocent children repulses Pakistan…and the world. Now, how will Pakistan respond?

Islamabad knows what doesn’t work. For years Pakistan’s leaders negotiated truce after truce with the Taliban. These leaders tried to appease the terrorists by surrendering the Swat valley on the Afghanistan border. Each time, the Taliban seized the opportunity to rearm, regroup and threaten major Pakistan cities.

In recent months, however, Pakistan has shown renewed resolve to root out the terrorists. This fall a Pakistani Army onslaught and a series of US drone strikes forced a Taliban retreat. Pakistan’s commanders vowed that they would root out the terrorists and prevail. The horrific scale of the Taliban’s response reflects how powerful the military’s campaign has been.

In the aftermath of the Peshawar attack, Pakistan launched more air strikes.

“This is a decisive moment in the fight against terrorism,” Prime Minister Nawaz Sharif told reporters. “The people of Pakistan should unite in this fight. Our resolve will not be weakened by these attacks.”

Yet, even with small bodies piling up in the Peshawar morgue, a forceful Pakistan response is not a foregone conclusion.

The country has been a shaky ally for the US and a dangerous neighbor for Afghanistan. Some people in Pakistan’s government and intelligence services play both sides of

falling because foreign money is fleeing. Maybe as much as 50 percent of the free float of local stocks is owned by foreign interests. Big foreign money all around the world is scared to death right now. Interest rates in the US are also falling, as these funds seek a hopefully safe haven in US government debt.

But the peso is not falling, even as all this money supposedly leaves the country. I do not believe the Bangko Sentral ng Pilipinas is supporting the peso-exchange rate. Either Christmastime remittances are offsetting the foreign money leaving or these funds are being parked locally, waiting for the selling climax.

To the foreign money: So long, and don’t let the door hit you in the back on the way out.

The next weeks may be rough for the stock market. Expect it. The most conservative, but probably not the most profitable, approach would be to wait for the economic numbers for the first quarter of 2015.

Sometimes, sleeping through a typhoon is the sensible thing to do if you are safe and warm.

Send me an e-mail at mangun@ gmail.com. Visit my website at www. mangunonmarkets.com. Follow me on Twitter at @mangunonmarkets.

PSE stock-market information and technical analysis tools provided by the COL Financial Group Inc.

the conflict, secretly funneling aid to homegrown terrorists, while pretending to help the US and its allies.

Pakistan’s leaders have often been hesitant to take on the Taliban. Over the years, some Pakistan leaders have complained about US drone strikes on Taliban leaders. They’ve claimed that such strikes sabotaged peace talks with the Taliban.

But the Taliban don’t want peace.

They seek to overthrow Pakistan’s government. They aim to lash out at the West, particularly the US. They seek a world that beheads unbelievers and forbids girls—like Malala— from attending school.

Pakistan mourns today. But it also gains strength from children such as Malala, who refused to be intimidated, who demanded the right to go to school.

“I, along with millions of others around the world, mourn these children, my brothers and sisters,” Malala said after the Tuesday attack.

“But we will never be defeated.”

Let this be Pakistan’s last Malala moment. Chicago Tribune/TNS

Opinion BusinessMirror

opinion@businessmirror.com.ph

Importer accreditation process God’s kindness is forever Atty. Pierre Martin D. Reyes

Msgr. Sabino A. Vengco Jr.

Tax law for business

Alálaong Bagá

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ARLY this year, the Department of Finance issued Department Order 012-2014, introducing a two-phase accreditation process, in which importers must first secure a Bureau of Internal Revenue (BIR) Importer Clearance Certificate (BIR-ICC) or BIR Customs Broker Clearance Certificate (BIR-BCC), and present the same to the Bureau of Customs (BOC) for accreditation. The BIR and BOC then issued their respective rules—Revenue Memorandum Order (RMO) 10-2014 and Customs Memorandum Order (CMO) 4-2014, respectively—to implement the same. Months have passed, and the process continues to be mired in criticism, confusion and delays, leading to warnings of its adverse impact on business.

Under RMO 10-2014, importers must meet all of these criteria: 1) existence of a head office or principal place of business; 2) full compliance with BIR primary and secondary registration; 3) no “stop-filer” cases, or timely filing of returns and payments of tax; 4) no record of any account receivable and delinquent account (AR/ DA); 5) no record of any pending taxrelated criminal case; 6) no unresolved issue arising from discrepancies in declared income or expenses resulting from third party information; 7) not tagged as a “cannot be located” taxpayer; 8) no material misrepresentation in submitted accreditation documents; 9) regular use of the electronic filing and payment system in filing all requisite tax returns and in the payment of taxes or regular use of the so-called Inter-Active Forms System in filing the tax returns and payment of taxes; and 10) regular submission of all information returns.

Emphasis must be made regarding the fourth and sixth criteria. The AR/ DA in the fourth criterion is defined as an outstanding tax liability arising from an assessment that has been established to be final, executory and demandable.

Thus, for as long as the importer has outstanding tax liabilities that are already final and executory, it will never be able to secure accreditation, unless the same is settled. Regarding the sixth criterion, those who were issued letter notices showing discrepancies will not be issued ICCs, unless they resolve the discrepancy issues. Between not being able to import and pay taxes, applicants are forced to choose the latter.

The application for ICC shall be filed with the Accounts Receivable Monitoring Division (ARMD). While a direct, personal appearance was previously required, this was amended by RMO 332014 to allow individual applicants with a severe medical condition to be represented by an attorney-in-fact. The RMO also clarified that, as to non-individual applicants, the authorized officer refers to any of the officers listed in its latest General Information Sheet (GIS) filed with the Securities and Exchange Commission (SEC). If the person authorized is not one of those indicated in the GIS, a sworn statement that such person shall be jointly or severally liable for problems arising from the application must be submitted.

As enumerated in RMO 10-2014, the application must be accompanied by numerous supporting documents, some of which require application to and

lengthy processing by other government agencies, such as the SEC, the Philippine Economic Zone Authority and the Board of Investments. If the documents are incomplete, the ARMD shall not accept the application.

Assuming that all the necessary documents are secured, the ARMD shall verify if the applicant meets all the criteria.

If all are met, the ARMD will issue the ICC. This shall be valid for three years.

Those who fail to satisfy any of the criteria shall be issued a Notice of Denial of Application for Accreditation as an Importer/Broker. This, however, is without prejudice to a refiling when the reasons for denial no longer exist.

Thereafter, pursuant to CMO 4-2014, the ICC is submitted, along with other supporting documents, to the Account Management Office (AMO) of the BOC. The AMO shall either approve or deny the accreditation. Importers should note that, aside from revocation and cancellation by the BOC, their accreditation with the bureau shall be invalidated upon the expiration, revocation or cancellation of the BIR-ICC or BIR-BCC. The implication here is that, to maintain one’s accreditation, the importer must be compliant with both BIR and BOC rules, which certainly should be the case.

The underlying purpose of these rules is to ensure that importers are engaged in a legitimate business. It must be said, however, that a balance must be struck between ensuring compliance with the law and promoting a regulatory environment conducive for business. Months have passed since its introduction, and many will agree that the accreditation process has become more cumbersome and drawn out. The process must be simplified and the issues arising from its implementation addressed. The government should facilitate trade, not impede it.

The author is a junior associate of the Du-Baladad and Associates Law Offices, a member-firm of the World Tax Services Alliance.

The article is for general information only, and neither not intended nor should be construed as a substitute for tax, legal or financial advice on any specific matter.

Applicability of this article to any actual or particular tax or legal issue should be supported, therefore, by a professional study or advice. For comments or questions about the article, send an e-mail to the author at pierremartin.reyes@bdblaw.com.ph or call (632) 403-2001, local 311.

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OD’S kindness to His chosen one is forever; he will sing of the Lord’s goodness for eternity (Psalm 89:2–3, 4–5, 27, 29).

The Child to be born of Mary will have the throne of David, and His kingdom will have no end (Luke 1:26–38).

My kindness toward him is forever PSALM 89 is apparently modeled on 2 Samuel 7:16–29, wherein God’s promise to David that his throne shall stand strong forever moves the king to sing praises to Him. The psalmist expresses his faith in God’s unalterable commitment to His people, who are now waiting for His saving presence. Two terms are constantly repeated: divine kindness and faithfulness, which are the basis of faith and trust in God. Kindness (hesed) is God’s unconditional love for David and his descendants; faithfulness (emuna) is God’s fidelity to His promises. God’s love and faithfulness last forever, His gift to His chosen ones that endures forever.

What God guarantees is established as firm as the heavens and stretching beyond any specific time. All ages shall know of it and proclaim it.

Everlasting is the covenant that God made with David; its consequences, to unfold in the lives of his

descendants. It is through his family that God would carry out His promises to the people of Israel; David’s throne would last forever and his posterity ensured. In this unique relationship between God and the Davidic house, they could not help but realize and confess that the Lord is their “father” and they are His children. They adore only God, the “rock” of their refuge and strength, and their “savior” in all dire situations. God is true to His covenant with David and recommits Himself that “forever I will maintain my kindness toward him.”

He will rule forever

IT is to a descendant of the house of David that the angel Gabriel announced the impending birth of a son, to be named Jesus (meaning “God saves”). The announced birth is part of God’s plan of salvation for His people. As the prophet Zephaniah (3:14–17) told Zion/Israel to “shout for joy...exult with all your heart...the

By Trudy Rubin

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N August United States President Barack Obama authorized air strikes to prevent the Islamic State (IS) from carrying out a genocidal slaughter of Iraq’s Yazidi minority, tens of thousands of whom had fled their besieged city and villages into barren mountains.

The Yazidi struggle continues.

The IS is selling off 2,000 captured women and girls as sex slaves. Six thousand Yazidis remain trapped on Mount Sinjar. Hundreds of thousands more—virtually the entire community—have been driven from their homes and are struggling to survive in refugee camps in Iraqi Kurdistan.

I just spent a day with Vian Dakhil, the only Yazidi member of the Iraqi parliament, whose passionate plea for help on August 5 made her the face of the Yazidi struggle. (Watch the YouTube clip of her speech and you will be moved to tears.) She is in the US at the invitation of Temple University’s Dialogue Institute, and

is now in Washington to ask the Obama administration and Congress for urgent assistance.

The IS attempted genocide against the Yazidi minority—a pre-Islamic, monotheistic faith—lays bare the vicious ideology that seeks to drag the region back to the 7th century and illustrates the need to destroy the group. So Dakhil’s message deserves to be heard.

She is an accomplished, striking woman who taught biology at a university in Erbil, Kurdistan, before entering politics, and travels around Washington in a black pantsuit, her long, blond hair flying. She comes from a family of strong women (four

Lord is in your midst. Fear not...your God...will renew you in His love,” so now the angel tells Mary, the virgin betrothed to Joseph of the house of David, to “rejoice, the Lord is with you.... Do not be afraid...for you have found favor with God.” The son of Mary “will be great, and will be called Son of the Most High. And the Lord God will give him the throne of David, His father, and He will rule over the house of Jacob forever, and His kingdom will have no end.” Jesus will be the ultimate descendant of David. This awesome story that Gabriel tells Mary makes her wonder how it can happen at all. The angel explained that it is the Holy Spirit who will come upon her, and that it is by the power of the Most High that everything will happen. This is illustrated by the case of Mary’s kinswoman Elizabeth, who, in her old age and barren condition, is already in her sixth month of pregnancy, for nothing is impossible with God. It is, indeed, God’s loving kindness and faithfulness to His promises to David that make this gospel of salvation possible.

Your word is forever

GOD’S love and power play out in an out-of-the-way corner of Galilee, with a virgin who still has no relations with a man and with an aged couple who finally overcame their limitation, as far as posterity is concerned. The narrative of God’s saving love is clearly divine work, and is not

Asia isn’t ready for a China crash William Pesek

BLOOMBERG VIEW

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S China’s first full year of rebalancing draws to a close, how has President Xi Jinping fared? Reasonably well, it seems.

Growth appears to be moderating gently, stocks continue to soar and most economists still foresee a soft landing, rather than a market-shaking meltdown for the world’s second-largest economy.

Next year, however, Xi’s team will have to get to the hard stuff: taming an opaque, unwieldy financial system.

My question isn’t so much whether China will or won’t crash; it’s whether the rest of Asia is ready for the possibility of 5-percent, or even 4-percent, Chinese growth, as predicted by pundits like Larry Summers and Marc Faber. It’s almost certainly not.

Historically, hedge funds betting against China haven’t done very well.

This week, in fact, the government is expected to revise 2013 gross domestic product figures upward by as much as $275 billion, which, on paper, should help meet its target of 7.5-percent growth for the year.

For anyone who thinks that China is operating even close to that num-

ber, though, I have two words: iron ore. Even more than the precipitous drop in oil, the halving of prices for these pivotal rocks and minerals—as well as a 44-percent plunge in oil, and tumble in coal and other commodities—suggests that China may be braking rapidly.

It’s important to remember that, however large, China’s economy is no more developed than South Korea’s was when it imploded in 1997.

The Chinese financial system is less evolved than that of the Philippines and less open than that of Indonesia. Beijing’s $3.9 trillion of currency reserves are useful when market turmoil hits, as has happened in emerging markets this week. But that stash is dwarfed by

Grim testament to Islamic State’s ethnic cleansing The Philadelphia Inquirer (TNS)

Thursday, December 18, 2014

of her sisters are doctors and one is a pharmacist) and displayed her own courage when she rushed in August to help refugees on Mount Sinjar, flying in with a rare Iraqi-government helicopter-rescue mission. The chopper crashed, leaving her with broken legs that are only now healing; she is still using one crutch.

“We are being killed for our religious convictions,” Dakhil told me with passion. Indeed, the IS targets members of her religious sect (who are mostly ethnic Kurds), which draws on Christianity, Judaism and Zoroastrianism, because they are considered infidels.

The jihadis are targeting other Muslim sects, as well as Christians, who have fled by the tens of thousands, but their women haven’t been taken as chattel. “The IS looks for young Yazidi girls to rape, 11 to 13 years old, and does it over and over,” she related emotionally. Some of the captives have been able to call home on cellular phones and describe the

horrors they have endured or witnessed. The three daughters of one of her cousins were taken and are still missing; the cousin was murdered.

When she lists the steps that are needed immediately to help the Yazidis, it’s not surprising that Dakhil starts with a request for international help in freeing the women who have been enslaved. She has little faith that the central Iraqi government or its security forces can help rescue Yazidis in the future, nor does she have any confidence in Iraq’s neighbors to do so. Instead, she hopes the US will directly arm and assist Kurdish peshmerga forces, which include Yazidis.

Dakhil is also concerned about the fate of about 260 women and girls who have escaped from the IS. Yazidi religious leaders have instructed families to welcome them back, but “because of cultural norms, these women will not be able to marry or lead normal lives.”

After enduring such horrors, they, and those rescued in the future, will need counseling and job training to

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due to mere natural causes.

Gabriel’s opening words to Mary already indicate the extraordinary and the supernatural: “Rejoice, full of grace! The Lord is with you!” “Rejoice” connotes the prophecies of the restoration of God’s chosen people and recalls the promises waiting to be fulfilled. The angel knows something about Mary that she herself does not: She is full of grace; she has been filled already by God with His divine gifts. The Lord is with her!

The Most High has chosen her to be His instrument in carrying out the divine commitment to His people.

She is a virgin in the deeper sense of belonging and being dedicated to God and His plans.

Now aware of God’s loving presence in her life and His invitation to share in His plan, Mary comes to her decision. Her act of commitment to the covenant with God is expressed by referring to herself as “the handmaid of the Lord,” hearer and doer of God’s eternal word.

Alálaong bagá, with the psalmist, Mary, more than anybody else, can sing of the goodness of the Lord that is forever. She can testify that God’s kindness is everlasting, and His faithfulness confirmed in heaven. The birth of Jesus represents God’s eternal kindness.

Join me in meditating on the Word of God every Sunday, 5 to 6 a.m. on DWIZ 882, or by audio-streaming on www.dwiz882.com.

the $19 trillion in credit extended by the banking system since the 2008 Lehman Brothers Holdings Inc. crisis, according to Charlene Chu of Autonomous Research Asia. And remember: China’s vast and opaque shadow-banking system obscures Beijing’s true liabilities.

Many policymakers appear to believe that the worst is over. In the past year, they stress, Chinese leaders have taken bold steps to shift growth away from excessive investment and exports toward consumption and services. But it’s a fantasy to think that a 10-percent growth will soon return—or even 7.5 percent.

“With China intent on continuing reform to generate quality growth at a lower level, the rest of Asia cannot expect any help in terms of overall demand,” says Simon Grose-Hodge, head of South Asia investment strategy at LGT Group in Singapore.

That means China’s neighbors can no longer put off the task of rebalancing their own economies—and away from dependence on China’s.

They, too, need to develop vibrant, diversified domestic economies that are driven more by services and innovation than exports.

The to-do list is long. Despite a flurry of bilateral-trade negotiations and talk of a more unified market in

Southeast Asia, trade barriers within the region are still far too high. Governments need to do more to support nonresource industries, like manufacturing, technology and the sciences, to make their economies more competitive and nimble. That includes offering incentives to smalland mid-sized companies to innovate and enter new markets. Lowering taxes on goods made in the region would help boost consumption.

Above all, nations need to draw up contingency plans for China-related market turmoil. This may not come to pass. Chinese wages and salaries are expected to grow 6.5 percent in the current quarter, while productivity is seen growing 4.1 percent (numbers of which policymakers, from Washington to Tokyo, can only dream). Even as China ratchets down growth, it’s continuing to produce legions of new consumers.

But several years of painful and unpredictable restructuring lies ahead. No matter how skillful Xi is, there’s a decent chance that the whole thing will go haywire. And just as Asia once used to rise and fall with American consumers, the region would be devastated by a sudden and deep Chinese slowdown. Nations would be in a much stronger position if they started bracing for the worst now.

resume any semblance of normality.

“Help us develop programs to support these victims of IS brutality,” Dakhil urges. I can’t think of a better use for US aid funds.

Dakhil also hopes that Washington will aid the Kurds in evacuating 1,200 or so families that are still marooned on Mount Sinjar. And the several hundred thousand Yazidi refugees now living in tent cities in Kurdistan are suffering dire shortages of food, medicine and sanitary facilities as a cold, wet winter approaches.

Humanitarian aid funneled through the United Nations, or the central Kurdish government, is slow to appear, or invisible, she says. She is urging that such aid be delivered directly through the Kurdish regional government in Erbil. Good idea.

Of the many poignant and disturbing things I heard from Dakhil, the most striking was that she believes there is no possibility of religious minorities returning to their old homes among Sunni Muslims.

Yazidis (and Christians) in Iraq’s north all have stories about how their relatives were betrayed to the IS by Sunni neighbors or worse.

“My uncle’s Sunni neighbors killed him, even though Yazidis and Sunnis have lived for hundreds of years as brothers,” she says. “Now everything has changed, and I have no idea why.”

Yazidis believe they can no longer trust their former neighbors, and many Iraqi Christians believe the same. So Dakhil says the only chance for minorities to remain inside Iraq is if they are allotted a separate, autonomous region in the north once the IS is rolled back, an area that might be attached to the autonomous Kurdish region. This is an idea the central government opposes.

Her idea may be premature, but it deserves consideration at the White House and by Iraq’s government. If Yazidi and Christian minorities are driven entirely out of the region, the Middle East’s future will look even bleaker than it does now.

2nd Front Page BusinessMirror

A8 Thursday, December 18, 2014

Hong Kong experts: MRT Line 3 infrastructure poor, unsatisfactory

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www.businessmirror.com.ph

By Lorenz S. Marasigan

First of two parts

here is a pressing need to rehabilitate the Metro Rail Transit (MRT) Line 3, experts from a Hong Kongbased train operator said, as they have found most of the system’s infrastructure poor and unsatisfactory.

In a 39-page summarized audit report, nine railway experts from Hong Kong’s MTR Corp. Ltd. agreed that the most-congested train line in the Philippines had obsolete facilities that require immediate attention to safely and conveniently ferry passengers between the northern and southern terminals in Metro Manila.

The document concluded that the overhead mass-transit system had major flaws in rails, emphasizing on the need to replace “unsafe tracks” that was backed by a fourfold increase in broken rails over a period of three years. Tracks, according to the report, were graded poor, meaning extensive defect exists. “ The track condition is most alarming and required immediate attention. The extent of defects is known for quite some time, but there is no agreed way forward on how to rectify the situation. Replacement of defective track sections is recommended, but it is noticed that there is insufficient stock. Machine rail grinding to control the growth of developing defect is also not done,” the train experts from the Chinese territory said.

“The track condition is found to be in a poor and unacceptable condition to allow continuous safe operation of the railway up to its designed standard. In fact, starting from August 20, the running speed was restricted to 40 kilometers per hour from 65 kph to reduce the safety risk posed to the passenger. While it may help to reduce the chance of rail break in the short term, it does not obviate the need to put forward an immediate plan to correct the situation,” the pundits added.

The availability of rolling stocks, they noted, cannot meet the availability performance requirement for service during peak hours.

“Traction motor has exhibited the most failures and it should be reviewed if overhaul or full replacement would be required,” said MTR Hong Kong, which operates one of the most profitable train systems in the world. The train system’s rolling stocks were graded unsatisfactory, which means that the system is in operable condition, but customer requirements cannot be met frequently.

“The signaling system has continued to function as per the original design,” the experts said. “However, the physical condition in the signal equipment room is poor and is going to adversely affect the life of the asset.” Hence, the need to replace the said system, as it has already exhibited “obsolescence.”

The elevators and escalators were also rated poor, and were recommended to be improved “before they are further deteriorated.”

MRT’s communications system, despite being graded fair, has exhibited a lag on the recovery of the component to normalcy. The said system, the experts said, should be replaced as if nears the end of its life. There are 46 Mitsubishi and Schindler escalators at all the MRT’s stations. However, 10 were out of order due to lack of spare parts.

“Cleaning, housekeeping and maintenance also need to be enhanced,” the pundits added.

The power-supply system and overhead catenary system were satisfactory, although the supervisory control and data-acquisition system has been “inoperative for a long time and let to waste of resources.”

“There is obsolescence issue in protection equipment and uninterrupted power supplies. Asset condition-monitoring applications, partial asset replacement, earthing system-integrity check, and capacity reviews on power-supply system are recommended for asset life assurance,” the MTR officials reported. To be concluded

MU-X DRIVES ISUZU’S 19-PERCENT SALES HIKE IN NOVEMBER

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suzu Philippines Corp. (IPC), the country’s No. 4 auto brand in terms of sales among assemblers, reported a 19-percent growth in November, propelled by the robust sales of its Isuzu mu-X. In a statement released on Wednesday, IPC said the sport-utility vehicle (SUV) offering, introduced just in September, turned out to be the firm’s No. 1 seller as it responded to the local automotive market’s demand for a family-oriented, premium SUV. Latest combined reports by the Chamber of Automotive Manufacturers of the Philippines Inc. and the Truck Manufacturers Association show the all-new Isuzu mu-X registered 532 deliveries in November, compared against 332 in October, or a solid 60.2-percent month-todate rise.

Due to the market reception of the all-new mu-X, IPC’s total sales spiked by 18.9 percent from 1,377 units in October, to 1,637 units in November.

IPC credited the strong welcome of the Isuzu mu-X as having moderated the slight decline in sales of its other offerings, such as the Isuzu Crosswind AUV and the D-Max pickup.

The Crosswind sold 319 units in November, a 5.6-percent dip from October results, while the D-Max sold 307 units in November, an identical 5.8-percent decline from the previous month. Still, IPC’s total sales of light commercial vehicles (LCVs) rose 16.3 percent in November.

For its commercial vehicle segment, IPC reported a 25.7-percent growth in its truck segment in November, as well.

Year-to-date, the LCV segment, during the 11-month period reached 9,551 units, a 15.3-percent growth over the same period in 2013. From January to November, a prime driver has been the Isuzu D-Max, which showed a 66.3-percent improvement over yearago levels. Deliveries of the pickup offering totaled 3,493 units See “mu-X,” A2