Businessmirror december 28, 2015

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Monday 2014 Vol.28, 10 No.2015 40 Monday,18, December Vol. 11 No. 81

DOJ backs House bill hiking penalty against erring telcos

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By Joel R. San Juan

egal minds at the Department of Justice (DOJ) support in full a legislative proposal seeking to hit recalcitrant telecommunications companies in the pocket where it hurts the most each and every time they fail to observe established rules, especially when dealing with the consuming public.

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According to the DOJ, it supports the passage of a proposed law at the House of Representatives seeking to increase the penalty on erring telecommunications companies.

At present, the telcos pay a miserly P200-per-day fine for each regulatory infraction they commit. The penalty schedule is based on the Public Service Act of 1936. If the proposed legislation passes muster, they face up to P20,000 fine for each day the violation is outstanding.

In a two-page legal opinion by Justice Assistant Secretary Adonis P. Sulit, the justice department said it is well within the power of Congress to enact laws that enhance the compliance of See “DOJ,” A2

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

MORE ‘HOT’MONEY SEEN EXITING PHL NEXT YEAR

By Bianca Cuaresma

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espite an anticipated overall improvement in the global economic landscape in 2016, the Bangko Sentral ng Pilipinas (BSP) on Friday projected a deterioration in “hot” money flows in the coming year.

This, according to BSP Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo, was on account of the cloud of uncertainty over the pace of development in other economies.

In particular, the central bank anticipates foreign portfolio investments (FPI) to post a net outflow of $1.3 billion in 2016, representing an acceleration from expected net outflows this year of some $200 million.

FPI, more popularly known as hot or speculative money,

readily flits in and out of the $285billion Philippine economy at the slightest change in global or local sentiment.

“With respect to FPI, for 2016 we observe some deterioration.

But this is again something that we expect, because of the continued play in financial markets, because of the uncertainty surrounding China and other emerging markets, as well as issues in the US [as to] when it moves next and by how much,” Guinigundo said.

But no matter, the BSP even earlier said it projects an improvement in the country’s overall balance of payments (BOP) position for 2016.

“Given a more challenging external environment, for the BOP to maintain a $2-billion surplus for 2015 and $2.2 billion for 2016 is, See “Hot money,” A2

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CLEAN FORCE A glass wall decorated with Star Wars characters gets cleaned in a building at Bonifacio Global City in Taguig. Disney says Star Wars: The Force Awakens will give way to the locally produced movies in the annual Metro Manila Film Festival lineup, then return after the festival concludes in the first week of January 2016. NONIE REYES

BOI sees flat growth for 2015 investment pledges

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he Board of Investments (BOI) said it could miss its target of hiking investment pledges by 10 percent this year due to the lack of big-ticket power projects.

BOI Governor Lucita P. Reyes told reporters that investment pledges approved by the agency this year could register flat growth, as data indicated that investors’ commitments may only match those made in 2014.

The BOI, one of the country’s main investment-promotion agencies (IPAs),

hauled in P353.5 billion in investment pledges last year. The figure, however, is nearly 24 percent lower than the P466.03 billion recorded in 2013.

In this year’s Philippine Economic Briefing, officials from the Department of Trade and Industry (DTI) said they expect the BOI to increase investments by 10 percent to P390.2 billion this year, from P354 billion posted in 2014.

Trade Undersecretary Adrian S. Cristobal Jr. said the absence of big-

PESO exchange rates n US 47.2980

ticket power projects has made it difficult for the government to increase investment pledges this year.

Data from the DTI released in October showed that investments approved by the BOI in the first half of the year declined by 38.4 percent to P92.02 billion, from P149.45 billion recorded in the same period last year.

Investment pledges approved by the BOI accounted for 48.4 percent of commitments given the go signal by the country’s major IPAs, which also

include the Authority of the Freeport Area of Bataan,BOI-Autonomous Region in Muslim Mindanao, Cagayan Economic Zone Authority, Clark Development Corp., Subic Bay Metropolitan Authority and the Philippine Economic Zone Authority.

Prospects for 2016 aren’t any brighter for the BOI, as DTI officials earlier said investment pledges approved by the IPAs could expand by only 7 percent.

See “BOI,” A2

n japan 0.3907 n UK 70.1193 n HK 6.1013 n CHINA 7.3004 n singapore 33.6809 n australia 34.2293 n EU 51.8055 n SAUDI arabia 12.6087

Source: BSP (23 December 2015)

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Monday, December 28, 2015

In final year, Obama seeks to stave off lame-duck status

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ASHINGTON—In June, during one of the best stretches of his presidency, Barack Obama strode through a West Wing hallway exclaiming, “Offense!

Stay on offense!”

It was a rallying cry for a White House that suddenly seemed to find its footing in the final quarter of Obama’s tenure. An Asia-Pacific trade agreement was moving forward, as was the diplomatic opening with Cuba and work on an historic nuclear accord with Iran. The Supreme Court upheld a key part of the president’s long-embattled health- care law and legalized gay marriage nationwide.

Even in the depths of tragedy following a church shooting in Charleston, South Carolina, the president struck an emotional chord with his stirring eulogy for the victims.

“I said at the beginning of this year that interesting stuff happens in the fourth quarter—and we are only halfway through,” Obama said during his annual year-end news conference.

But the seventh year of Obama’s presidency also challenged anew his cautious and restrained approach to international crises, particularly in the Middle East. Attacks in Paris and San Bernardino, California, heightened fears of terror on American soil and Obama’s attempts to reassure Americans fell flat. And a seemingly endless string of mass shootings elsewhere in the US exposed the sharp limits of Obama’s power to implement the gun-control measures he advocates with passion.

Obama now stares down 11 months before his successor is chosen in an election shaping up to

be a referendum on his leadership at home and abroad. He stirs deep anger among many Republicans, a constant reminder of his failure to make good on campaign promises to heal Washington’s divisiveness. But he remains popular among Democrats and foresees a role campaigning for his party’s nominee in the general election.

The president is packing his final year with foreign travel and has about a half-dozen trips abroad planned, including a likely visit to Cuba. The White House’s legislative agenda is slim and centers mostly on areas where he already has overlapping priorities with Republicans, including final passage of the TransPacific Partnership (TPP) trade pact and criminal justice reform. But he’s also eyeing provocative executive actions, including an expansion of background checks for gun purchases and the closure of the Guantanámo Bay detention center.

“We recognize there’s limited time left,” said Jennifer Psaki, Obama’s communications director.

At times, Obama’s second term has appeared to play out in reverse.

He struggled to capitalize on his decisive reelection victory in 2012, stumbling through a two-year stretch that exposed the limits of his power and made him a political liability for his party. Then in an unexpected twist, his party’s devastating defeats in the 2014 midterm election spurred one of the most productive

years of his presidency, positioning Obama to be a valuable political ally for Democratic presidential frontrunner Hillary Clinton.

“Barack Obama will loom over the election,” said Dan Pfeiffer, a longtime Obama adviser who left the White House earlier this year.

Advisers say the Supreme Court’s ruling in May, which upheld the subsidies at the heart of Obama’s healthcare law, came as a particular relief to the president. The decision ensures the law survives his presidency, even as Republican candidates campaign on pledges to repeal it.

Obama sees the Iran nuclear accord, Pacific Rim trade pact and the sweeping global climate-change agreement finalized in Paris earlier this month as examples of how America should wield its power on the world stage. The agreements have driven the debate in the presidential campaign for long stretches—a point of pride for a White House eager to show that the president remains the country’s most relevant politician even as he eyes the exits.

Yet, Obama hasn’t been able to escape the Middle East. No matter how many times he tries to pivot to Asia or rebrand US foreign policy as more about diplomacy than military might, the volatile region continues to be the dominant force in the way his foreign policy is viewed.

Nearly every candidate running for president—including Clinton, his former secretary of state—is calling for more aggressive action to fight the Islamic State (IS) group.

Obama has inched the military deeper into the conflict, including backtracking on his refusal to put US troops on the ground in Syria, but has largely stuck with his initial strategy of combating the extremist group from the air.

The terror attacks in Paris and

NORTHEAST MONSOON AFFECTING EXTREME NORTHERN LUZON (DECEMBER 27, 5:00 AM)

California, however, have taken a worrying but distant fight against the IS militants and made it top-ofmind for many Americans. White House advisers say Obama is well aware that he misjudged the public’s level of anxiety about terrorism and must scramble to counter what he sees as overheated rhetoric from Republican presidential candidates that filled the void he created by his tepid initial response.

Aides say outlining an alternative to Republicans on foreign policy and other matters will be a central part of his final State of the Union address to Congress on January 12. The address was purposely scheduled earlier than usual to give the president space to make his case before primary voting begins. He departed for his annual Hawaii vacation with a draft of the speech in hand.

As he closed out 2015, Obama promised he wouldn’t fade into the background in his final year in office. But he’s also realistic about the limited legislative opportunities for a Democratic president and Republican-led Congress in a presidential election year.

His relatively modest congressional agenda includes final passage of the TPP trade pact, criminal justice reforms, dealing with Puerto Rico’s debt crisis and funding programs to address the spike in opioid use.

At least some Republicans say they’re willing to work with the president in his final year.

“I think if you look at what we’ve been able to work with him on this year, it’s a good, telling piece of the kinds of things we can do next year,” said Republican Sen. Cory Gardner.

“We worked very well on education reform, the highway bill, on human trafficking legislation—so there were some significant bipartisan accomplishments that we have been able to achieve this year.” AP

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BOI. . .

Continued from A1

The DTI attributed this to the changes made to the Investment Priorities Plan for 2014 to 2016, which specified economic activities eligible for government incentives.

Meanwhile, the Electric Vehicle Association of the Philippines (Evap) said it has formed a working group with the DTI to map out a development plan for the local electrical vehicle industry for 2016.

Evap President Rommel Juan said in a statement that his group met recently with BOI Director for Industrial Service Corazon HaliliDichosa to jump-start the formulation of the plan.

The move is in line with Evap’s goal of rolling out 5,000 electric

DOJ. . .

tricycles and 1,000 electric jeepneys in the next three years. An electric vehicle working group (EVWG) was created under the auto industry technical working group of the BOI. The EVWG is composed of Juan, Evap Secretary Edmond Araga and representatives from various government agencies, such as the Department of Science and Technology, and financial institutions like the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines.

During the meeting, Juan stressed the need for “green” credit lines from the DBP and LandBank to support e-vehicle financing.

Catherine N. Pillas

Continued from A1

public telcos and result in the efficiency of the service they provide.

The DOJ issued the opinion upon the request of Rep. Susan Yap, chairman of the Committee on Information and Communications Technology, as this relates to House Bill 6161, entitled “An Act Providing for Penalties or Fines Against Erring Public Telecommunications Entities For Violation of the Terms or Conditions of Any Certificate, Authority, Order, Decision, Resolution or Regulation of the National Telecommunications Commission (NTC), Amending for the Purpose Sections 21 and 23 of Commonwealth Act No. 146.”

The proposed bill also allows NTC to increase the amount of penalties or fines every five years subject to a certification from the National Economic and Development Authority (Neda). If approved, the penalty schedule will be indexed to inflation or based on the current consumer price index.

“We interpose no legal or constitutional objection to the proposed bill, it being in accordance with the constitutionality-declared policy that ‘the State recognizes the vital role of communication and information in nation-building’,” the DOJ said.

“The imposition of increased penalty is a regulatory reform, which would make NTC’s regulation of public telecommunications entities more effective and, thus, ensure the delivery of efficient public telecommunications services,” it added.

The DOJ claimed it has closely monitored the telco industry and has issued several advisories urging them to improve their services.

Earlier, the DOJ issued an advisory asking the Department of Trade and Industry (DTI) and the NTC to monitor and penalize telecommunication companies that impose “data throttling” on consumers who avail themselves of unlimited Internet packages. Data throttling involves moving down the Internet speed of a subscriber after the consumer has hit a preagreed data consumption level.

Legal minds also reminded telco companies that the imposition of fair usage policy (FUP) on unlimited Internet service may be considered a form of misleading or unfair business practice punishable under the provisions of Republic Act 7394, or the Consumer Act of the Philippines.

Such practice, according to the DOJ, is punishable with a fine of not more than P10,000 or imprisonmment of at least five months to one year or both.

Likewise, the justice department said noncompliance with the requisites of fair packaging is also subject to criminal penalties such as a fine of not more than P20,000 or imprisonment of not more than two years.

With data throttling, according to the DOJ, “unli” data promo becomes inconsistent with their presentation of its packaging, hence, unfair and misleading. The DOJ also appealed to telco companies to immediately install so-called kill switch software in cellular phones to address the incidence of phone theft and ensure the privacy of its users.

The justice department said there was no need for legislation compelling telcos to install kill switches, as this was the responsibility of the telcos “to prevent crimes and to ensure that technology is used to address peace and order issues.”

The justice department added, “it is a common sense solution to a specific type of crime.”

“Commuters and consumers who work hard and save for their phones only to be victimized by criminals will benefit from a small effort from our telcos,” it added.

Hot money. . .

Continued from A1

indeed, illustrative of a resilient economy,” according to the deputy BSP governor.

Latest data from the central bank show hot money posting a net outflow of $69 million in November, representing an outmigration of foreign capital as fund managers position for when the US Fed will have made an interest-rate adjustment. The US Fed eventually announced the actual adjustment just a week earlier.

This was a reversal from net hot money inflows in October of just $27 million. This was also a turnaround from net inflows reported in November last year, totaling $369.92 million.

The previous October, gross inflows aggregated only $1.674 billion while gross outflows totaled $1.619 billion.

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Lower budget for greening program may hurt efforts to cut carbon emission–DENR official

Foreign experts to assist ERC in restructuring efforts

healthy forest through the NGP is a major factor in achieving the country’s carbonemission reduction target.

“Even with the carbon emission in energy, waste and industry put together it will not match the carbon-emission reduction potential of the forest,” he said.

Leones earlier said massive reforestation and waste-to-energy projects are being eyed for funding under the United NationsGreen Climate Fund mechanism to boost the county’s chances of fulfilling its ambitious INDC targets. “[That is why] we at the DENR were surprised by the budget cut. We were hoping for a higher budget for the NGP next year,” Leones said, adding that a higher budget for NGP is needed in view of the signing of Executive Order (EO) 193, which extended the implementation of the program until 2028.

EO 193 aims to cover the remaining 7.1 million hectares of open, degraded and denuded forest.

Of the country’s total land area of 30 million hectares, 15 million hectares are classified as forestlands. Of the 15 million hectares forestlands, less than 50 percent are actually covered with forest before the NGP was implemented. Jonathan L. Mayuga

HE Energy Regulatory Commission (ERC) is teaming up with foreign experts to partly assist in its restructuring efforts.

In particular, ERC Chairman Jose Vicente Salazar said the World Bank is sending its procurement expert to work on an information-technology (IT) project.

“We had a meeting with (World Bank) three weeks ago. They were offering assistance. They will send its best IT expert

by January,” Salazar said.

The agency is working on reinforcing its IT division. It plans to create a technical working group to achieve its goal of transforming the commission into an IT-related agency.

“Our intention is to make ERC ITenabled. We intend to put in place an IT system for all submissions in the coming months. Work has already started,” Salazar said.

The ERC chairman said experts from Australia and New Zealand will also assist the commission.

“Aside from the procurement expert, we also have invited regulatory experts from one of our consultants now, which is Castalia, and another regulatory expert from New Zealand. They will discuss how this can be mitigated into a new regime. Hopefully, we can finish this in three to four months,” Salazar said.

Castalia is an advisory firm that specializes in governance and regulation of infrastructure services.

Salazar is hoping that the budget for the agency’s IT infrastructure would be covered by next year’s P716-million budget. But the amount does not yet include the budget for hiring additional personnel.

As part of an ongoing reorganization, Salazar said the agency would double its personnel.

“From 200 plus, we will be 508 when the new organization settles. Majority would be new technical positions. We will strengthen our field offices, deploying technical and legal people,” Salazar said.

Salazar was appointed to head the commission in August. He will lead the agency in the next seven years.

“The intention is that while we try to address the new image of ERC, we would be able to do something about public access. In particular, how do we make the process more effective and efficient,” he said.

The ERC is made up of one chairman and four commissioners—Geronimo Sta. Ana, Gloria Victoria Yap-Taruc, Josefina Patricia M. Asirit and Alfredo Non.

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educing the budget for the National Greening Program (NGP) to P6.3 billion for next year will affect the program’s implementation and could make it difficult for the Philippines to achieve its “ambitious” carbon-reduction emission target, an official of the Department of Environment and Natural Resources (DENR) said.

Under the 2016 National Expenditure Program (NEP), the budget for the NGP is P900 million lower compared to the current year’s budget of P7.2 billion and is nearly P4 billion short of what program planners had expected for next year. The DENR had originally proposed a budget of P10.19 billion.

Environment Undersecretary for the Environment and International Affairs Jonas Leones said the country’s “conditional commitment” to reduce its carbon emission by 70 percent under its intended nationally determined contributions (INDC) submission to the United Nations Framework Convention on Climate Change is “heavily dependent”

on the financial and technical support the country will get.

“While advanced technologies help reduce greenhouse-gas [GHG] emission, these would not suffice and the economy could take a beating if we are to reduce carbon emissions without enhancing the country’s carbonsequestration capacity through sustained forestry development,” Leones said.

Under the NGP, the target next year is to reforest 300,000 hectares of open, degraded and denuded forest.

Based on its own accomplishment report, of the 1.5-million hectare overall target for 2011-2016, the DENR said around 1.29 mil-

lion hectares have been covered, leaving the department only around 210,000 hectares to reforest next year.

Half the NGP’s budget goes to the maintenance of program sites covered by previous year’s planting activities, while the other half goes to site preparation and planting activities of target areas.

It was estimated that 80 percent of the country’s GHG emissions are from motor vehicles, including cars, trucks and publicutility vehicles.

Another major contributor to GHG is coalfired power plants. The country is heavily dependent on coal to produce energy. Renewable-energy prospects from hydropower and biomass-to-energy are also heavily dependent on the health of the ecosystems.

The country’s “conditional pledge” to reduce its carbon emission by 70 percent under a “business-as-usual” scenario for 2020-2030 is dependent on the financial and technical support it will receive from developing countries for the implementation of various climate-change projects.

The carbon-emission reduction promised by the government will come from the energy, transport, waste, forestry and industry sectors.

According to Leones, having a vast and

Lawmaker slams DSWD for distributing uncooked food to calamity victims

By Recto Mercene

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he Department of Social Welfare and Development (DSW D) has apparently not learned its lessons on how to efficiently respond to the immediate needs of calamity victims, Sen. Francis G. Escudero said on Sunday.

Escudero said the DSWD continues to distribute uncooked rice and noodles and conventional canned goods to evacuees even if they are left without tools to cook such goods.

“Up to now, the DSWD is still doing t h at. Rel ief operat ion should be more relevant, should be more realistic and not simply for a show,” Escudero said, referring to food packs distributed by the DSWD. Aside from giving away food packs to evacuees, Escudero renewed his call for the DSWD to set up “soup kitchens” in barangays to feed residents displaced by calamities.

He made the suggestion as early as 2013, when Supertyphoon Yolanda (international code name Haiyan) left a trail of widespread destruction in central Philippines.

Escudero said they have set up soup kitchens in his home province of Sorsogon for the past years.

“If they really want to help, like in our province, they should put up soup kitchens to immediately assist those affected,” Escudero said.

“Whoever is hungry can fall in line and eat. It goes on for about a week after the typhoon struck. That is more relevant help. That is more needed help,” he added.

Escudero said he immediately flew to Sorsogon, one of the provinces hardest hit by Typhoon Nona (international code name Melor) on December 17.

The National Disaster Risk Reduction and Management Council said damage to agriculture and infrastructure caused by Nona and Tropical Depression Onyok reached a combined total of P4.9 billion as of December 22.

President Aquino declared a state of calamity on December 18 to “hasten the rescue, recovery, relief and rehabilitation efforts of the government and the private sector, including any international humanitarian assistance.”

CORN HARVEST Farmers harvest corn crops in Moncada, Tarlac. Corn is the second most important food crop (after rice) in the Philippines and a major source of income for 1.8 million

farmers. ROY DOMINGO

Truce between govt, NPA should be extended indefinitely–Poe

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he 12-day holiday truce between the government and the communist-led New People’s Army (NPA) should be extended indefinitely to help jump-start the stalled peace talks, Sen. Grace Poe said over the weekend.

Poe said extending the suspension of military operations (Somo) is a “confidence-builder” which could pave the way for the possible resumption of peace talks between the government and the Community Party of the Philippines (CPP).

“An extension of the cease-fire would be a goodwill gesture that could lead us back to the negotiating table. Armed conflicts must end.

People are already weary of violence,” she said.

The government and the CPP have declared a 12-day cease-fire, beginning December 23 until January 3. Both parties said the truce is in solidarity with the Filipino people’s traditional celebration of Christmas and New Year.

President Aquino approved the Somo even after reports that suspected NPA rebels ambushed a Philippine Army convoy carrying relief for victims of Typhoon Nona (international code name Melor) in Samar

POE: “An extension of the cease-fire would be a goodwill gesture that could lead us back to the negotiating table.

Armed conflicts must end. People are already weary of violence.”

on December 18.

Church leaders, particularly in Mindanao, have called for an extension of the truce, saying the poor were the “biggest casualties” of the decades-long war between the government and the communists.

“We should not give up on peace.

That is not an option for us,” Poe said. Let us not deprive our people of genuine progress. It’s time to move forward.”

Socioeconomic reforms and progress, Poe reiterated, could only exist in a “peaceful and just society.”

Sen. Francis G. Escudero also called for an extension of the truce, at least until the May 9 elections.

The NPA is the armed unit of the Communist movement. They have been waging a guerrilla war for the past 40 years. Recto Mercene

By Lenie Lectura

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ADB, IRRI to strengthen partnership on shared food-security goals for Asia

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OS BAÑOS, Laguna—The Asian Development Bank (ADB) and the International Rice Research Institute (IRRI) are set on bringing their 40-year partnership to a new level.

“It is a good idea to formalize our partnership,” said ADB President Takehiko Nakao, who was at IRRI on December 17 with members of the bank’s leadership to visit experimental sites, and discuss with IRRI management and scientists’ collaboration on agricultural development and food security across Asia.

ADB and IRRI have worked together since 1975, with ADB financing 33 projects involving $26 million in grants for research, capacity building and infrastructure development.

Such a long-standing and fruitful collaboration “should be elevated and officially bound by a memorandum of understanding,” said Corinta Guerta, IRRI’s director of external relations, who added that the joint work could be enhanced by a more

NAKAO: “It is a good idea to formalize our partnership.”

encompassing agreement, beyond project-by-project arrangements.

“Nakao also came with much personal interest because he is very aware of the cultural, as well as economic importance of rice to his home country of Japan and its people, and the role IRRI varieties have played in Japanese contemporary history,” said Bruce Tolentino, IRRI deputy director general for communication and partnerships.

“He has also seen how, in the ADB member-countries all across Asia, rice is such an important commodity, and he knows IRRI has played an important role in supporting

food security all across Asia,” Tolentino said of Nakao.

The ADB president visited IRRI with his management team to explore ways in which the two organizations could work together even more intensively, especially with the growing challenges of an ever-increasing population, the stresses of climate change, and deteriorating natural resources, particularly land and water.

Accompanying Nakao were his senior advisor Mio Oka; officers from the Private Sector and Cofinancing Operations (Diwakar Gupta, vice president, and Jacob Sorensen, senior advisor to the vice president), Rural Development and Food Security (Mahfuz Ahmed, technical advisor), and Natural Resources and Agriculture Division (directors of environment Akmal Siddiq for Central and West Asia, Takashi Matsuo for South Asia, and Qingfeng Zhang for East Asia); and Bernadette Agustin, natural resources and agriculture officer. PNA

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Palace insists no ‘pork’ in ₧3-T 2016 budget

By Butch Fernandez

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alacañang maintained on Sunday that there are no pork-barrel and lumpsum funds tucked in the P3.002-trillion 2016 national budget, disputing the findings disclosed by former National Treasurer Leonor M. Briones of the watchdog group SocialWatch.

Communications Secretary Herminio B. Coloma Jr. insisted that the Aquino administration adheres strictly to the rules set by law for crafting the annual national budget.

Coloma also assured that the Palace is abiding by a Supreme Court (SC) decision handed down in 2013, banning any form of the so-called pork barrel in the General Appropriations Act (GAA).

In an interview over State radio on Sunday, Coloma also quoted claims made by Budget Secretary Florencio B. Abad denying alleged pork-barrel insertions in the 2016 budget that President Aquino had signed into law before the year-end to maintain the administration’s record of not operating under a reenacted budget.

“According to Secretary Abad, there were no pork-barrel funds in the 2016 General Appropriations Act,” Coloma said, adding that the budget bill that was enacted into law underwent rigorous scrutiny in the House

of Representatives and the Senate.

He pointed out that Executive officials concerned have responded to the issues several times, addressing “questions, comments and criticisms” aired regarding the content of the 2016 budget law during the public hearings in Congress, as well as other venues.

Coloma noted that the P3-trillion 2016 budget is double the amount of the national budget when President Aquino assumed office in 2010, explaining this enabled the administration to increase funding allocations for public services and benefits to citizens.

At the same time, Coloma recalled that the controversial practice of operating under a reenacted budget, prevalent under the previous administration, was seen to have opened the floodgates for “many irregularities and anomalies” in the allocation of funds for various programs, which the Aquino administration avoided.

Coloma explained that under a reenacted budget, many of the programs funded in the previous year’s budget have already been completed, but the same budget is still used as the basis for spending, giving rise to possible abuse.

According to Briones, the 2016 budget is an election budget, loaded with lump sums and pork.

“The 2016 General Appropria-

tions Act of P2.139 trillion, which was recently signed by the President into law, is loaded with pork and lump-sum appropriations,” said Briones, lead convener of Social Watch Philippines.

In a statement over the weekend, Briones noted that while the National Expenditure Program totalled P3.002 trillion, more than P930 billion is for automatic appropriations; while special purpose funds total P408 billion and unprogrammed funds total P67.5 billion.

She pointed out that, just like the current 2015 GAA, the 2016 GAA reinforces the redefinition of savings and authorizes the transfer of Disbursement Acceleration Programlike funds already declared by the SC as unconstitutional.

“As in previous election years, small infrastructure projects were embedded in the 2016 budget and were specifically identified by legislators during the preparation phase of the budget, which amount to huge sums worth of public works,” Briones said.

She cited additional insertions introduced by both Houses of Congress and the Bicameral Conference Committee, noting that “concrete examples are farm-to-market roads, which are identified with legislators who claim credit for them during election sorties.”

Monday, December 28, 2015 A3

Year-end rice inventory good for 29 days–NFA

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By Mary Grace Padin

he Philippines will end the year with an inventory of 925,000 metric tons (MT) of milled rice, which could cover the country’s requirements for 29 days, the National Food Authority (NFA) said over the weekend.

As of December 21, NFA Administrator Renan B. Dalisay told the BusinessMirror that there were 850,000 MT, or 17 million bags of milled rice, stored in the food agency’s warehouses nationwide. The volume could cover the country’s rice requirements for 27 days.

Dalisay said the inventor y consisted of rice procured by the government from farmers and other countries, such as Vietnam and Thailand.

As of December 14, he said, the

NFA has bought 207,000 MT of rice from local farmers. The volume is higher than the 204,115 MT the government had targeted to buy from farmers this year.

NFA data also showed that 1.01 million metric tons (MMT) of imported rice were delivered to the Philippines in January to November.

Dalisay said the NFA is awaiting the arrival of 250,000 MT of imported rice from Vietnam and Thailand to beef up the food agency’s stocks

in preparation for a stronger El Niño episode next year.

The country’s rice stock by the end of any given year helps government planners determine whether there’s a need to import more rice for the succeeding year.

Communications Secretar y Herminio B. Coloma Jr. earlier announced that the Philippines may import 400,000 MT of rice in 2016, on top of the 500,000 MT expected to arrive in the first quarter of next year.

This is significantly lower than the Food Security Committee’s initial recommendation of 1.3 MMT of rice to be imported in 2016.

Meanwhile, data from the Philippine Statistics Authority (PSA) showed that the country’s rice stocks as of November 1 reached 3.11 MMT, 5.2 percent higher than the 2.95 MMT recorded in the same period last year.

Rice in NFA depositories, the PSA said, rose by 64.3 percent to 710,000 MT from 430,000 recorded last year.

NFA stocks consisted mostly of imported rice.

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Monday, December 28, 2015

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HVCCs can compete in single Asean market

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By Cai U. Ordinario

espite low funding, the Philippines’s best bets under a single Asean market are high-value commercial crops (HVCCs), according to a study released by the Philippine Institute for Development Studies (Pids).

This was among the findings of a policy note, titled “Improving the readiness of A&F [Agriculture and Fisheries] industries to the Asean integration,” authored by University of the Philippines Professors Ramon L. Clarete and Isabela Rosario G. Villamil, as well as Pids Senior Research Fellow Roehlano M. Briones.

“Regional integration creates market opportunities for the country’s producers, processors and exporters of A&F products. At least for the country’s export-oriented sectors, such as mangoes, bananas and pineapples, the Philippines is ready for Asean integration,” the study said.

The authors also said the Philippines is ready to compete in the single market in terms of HVCC commodities, like coffee, cocoa and onion.

Based on a previous study, Briones said HVCCs are crops other than traditional commodities such as rice, corn, coconut and sugarcane.

The United Nations’s Food and Agriculture Organization (FAO) said HVCCs include products such as coffee, cacao, fruit crops, root crops, vegetable crops, legumes, pole sitao, spices and condiments, and cutflower and ornamental-foliage plants. The authors also said the country’s tuna, seaweed, shrimp and sardine products can also hold out their own in the regional market.

“The country’s sardines have one of the lowest prices

in the world. However, the country needs to work harder to increase the volume of these products,” the study said.

The authors said the Asean Economic Community (AEC) presents both challenges and opportunities for Filipino farmers, as well as micro, small and medium enterprises.

The AEC, which officially starts in January 2016, is a major challenge because it will displace local industries that are not competitive.

These industries claim they are not ready for the AEC because of the single market’s focus on lower prices and wider choices of products; reduced incomes for farmers; and stronger market power of foreign players.

Other reasons are reduced food security and welfare of agricultural workers, many of whom will suffer from the lower prices that the single market will create.

The AEC, however, opens doors for industries in terms of tapping a larger and more diverse market for all products.

“The key to realize larger and more diverse market opportunities of regional integration is to facilitate the movement of economic resources previously in displaced import-competing industries to export-oriented industries and to make more effective those that are already in export-oriented industries,” the authors said.

Solons ask: Where were ‘sin’ taxes spent?

By Jovee Marie N. dela Cruz

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wo lawmakers have recently asked the Department of Budget and Management (DBM) and the Department of Finance (DOF) to provide the House of Representatives a report where the excise tax collected from cigarettes and alcohol was used.

In a resolution, Centrist Democratic Party Rep. Rufus B. Rodriguez of Cagayan de Oro City and Party-list Rep. Maximo Rodriguez of Abante Mindanao also urged the DBM and the DOF to produce information on whether the goals of Republic Act 10351, or the so-called sin-tax law, were met.

Citing the law, they said the DBM, the Department of Health, the Depart-

ment of Agriculture and the Philippine Health Insurance Corp. should also submit to the Oversight Committee of Congress a detailed report on the expenditure of the amount earmarked for universal health-care program.

“The law was enacted [in 2012] to cover millions of Filipinos in the government universal health-care program and the promise that the government will construct public clinics and hospital throughout the country,” the lawmakers said.

However, they said after the sin-tax law enactment, many Filipinos are still not covered by the universal healthcare program of the government and many cities and provinces are still without public clinics and hospitals.

They added that the revenues to be collected from the law should have

been allocated and divided among the provinces producing burley and native tobacco. “It should also be used for programs to promote economically viable alternatives for tobacco farmers,” the solons said.

In a recent BusinessMirror report, the finance department said that excise tax collected from cigarettes and alcohol in October grew by a little over 22 percent, aggregating P105.53 billion.

The DOF, however, said the revenues for the period were P9 billion less than total collection in 2014, amounting to P114.01 billion.

According to the DOF, total sintax collection from cigarettes alone amounted to P72.24 billion, or 27.5 percent more, or P15.58 billion, higher than last year’s total revenue.

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Monday, December 28, 2015 • Editor: Angel R. Calso

Opinion BusinessMirror

editorial

Why your candidate is losing

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ublic-opinion polls on the favored candidate for president are becoming the nation’s newest telenovela. With each release of the latest results, the next episode has twists, turns and an unexpected plot change. Like the TV serials, it is a matter of intense discussion. Was it really necessary for Benjie Paras to be killed off on the show Nathaniel?

No candidate for president has been able to receive more than about 25 percent—given the statistical margin of error—of the voters’ preference. This immediately leads to supporters voicing their opinion that the other 75 percent of potential voters are incredibly foolish for not wanting to give their vote to a certain person. Of course, if a candidate moves up the ranking, that is a clear indication that voters are beginning to see the light and change their wrong opinion.

The failure of the opinion polling companies in the United Kingdom earlier this year has caused an outrage, because of the failure to come near the final results. All the pollsters called for a “too-close-to-call” election, and the winner—David Cameron—won by a near landslide.

Part of the problem is that the candidates’ advisors are not very good at their jobs, particularly in the Philippines. As we pointed out earlier this month, an endorsement from a local official, like a mayor, carries substantial weight, while the endorsement of a sitting president, for example, is almost meaningless. Pushing the candidate’s past performance is not as important as telling the voter, “This is what I am going to do directly for you tomorrow.”

Assuming that the methodology and fairness of the opinion poll is not in question, why then do the polls seem inconsistent and flawed?

Since 1975, PepsiCo has run the “Pepsi Challenge”, a marketing promotion to test head-to-head the preference for Pepsi-Cola over rival Coca-Cola. Pepsi-Cola is sweeter by formula and taste than Coca-Cola.

The results show that in blind tests Pepsi is the favorite.

But the problem is that the Pepsi challenge is a “sip” test, where consumers are given a small taste of both soft drinks. In his book Blink, author Malcolm Gladwell presented that the sip test is inherently flawed. The research shows that people do prefer the sweeter taste based on a single sip, even if they prefer a less sweet beverage when drinking an entire glass.

In other words, voter preference in an opinion poll could be shortlived and based on something that is important today, but might not be even considered if the opinion poll was conducted tomorrow.

A more accurate way to test an opinion for an election is to poll every two weeks or less, and watch for trends in particular demographic groups. This eliminates some of the flaws of the sip test. But if that happened, it might reveal your candidate already owns the election or alternatively is a guaranteed loser.

A look back at PCSO in 2015 Atty. Jose Ferdinand M. Rojas II

RISING SUN

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he Philippine Charity Sweepstakes Office (PCSO) ends the year having raised more money for charity and having helped more beneficiaries, in fulfillment of its mandate and of the Aquino government’s policy of universal health care for all Filipinos.

Under Republic Act 1169, the PCSO is mandated to extend medical- and health care-related assistance. The PCSO accomplishes this primarily through its flagship program, the Individual Medical Assistance Program (Imap). Other PCSO programs include the endowment fund, calamity assistance, ambulance donation, special projects and others.

RA 1169, which is the PCSO’s charter, also allocates 30 percent of sales to the PCSO’s Charity Fund, while 55 percent goes to the Prize Fund and 15 percent to the Operating Fund for operating expenses (the PCSO receives no funds from the national government).

The PCSO’s assistance programs are funded by the sales of PCSO games, including the popular PCSO Lotto. As of November, the PCSO has already hit sales of P29.71 billion from Lotto and other online and number games, compared to total sales for the same period in 2014 of P29.65 billion.

Including sales of instant tickets and other games, PCSO sales as of November have already amounted

to P35 billion, with over 11.3 million Lotto winners (including consolation-prize winners), who have received total payouts of over P8 billion, with 47 jackpot winners receiving P1.98 billion.

To provide more excitement for Lotto players, the PCSO launched in February the Ultra Lotto 6/58 game, which was conceptualized in 2013. The game has risen in popularity over the past 10 months, garnering P1.56 billion in sales by November 2015. The last time the PCSO rolled out a new Lotto game was four years ago.

As of November 2015, the PCSO has helped 103,740 individual beneficiaries under its Imap for a total of P4.26 billion, or an average of P18 million in daily assistance compared to the P4 million daily in 2010, when the present PCSO board of directors assumed office in 2010.

Also in 2015, 52 hospitals received a total of P110 million in endowment funds, while 20 institutional partners received P19.2 million.

The PCSO also has an ambulancedonation program that distributed

The 6 evils of PPPs

By Alberto C. Agra

PPP Lead

PPP Lead No. 5

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s the administration presses on to double, within the next six months, the number of awarded public-private partnership (PPP) projects, we should take an extra cautious stance. While it is good that the government has closed and will close more PPP projects aimed at addressing the infrastructure deficit, the manner by which projects are awarded, the private-sector partners selected and the way projects are regulated must be scrutinized.

Aside from ensuring that the content of this development strategy should be ethical—the common good—the selection process and regulation policies must, likewise, be ethical. We must be mindful of the evils that haunt or could haunt these projects, from prioritization to selection to award to operations. Public officials and privatesector proponents, and nonparties to the PPP contracts—the general

public—must be vigilant of the menace ethical breaches on the content and process can bring about.

Whether it is traditional procurement, public or private financing, pure government regulation or PPPs, ethical breaches result in the worsening of the status quo. The true public of PPPs—the people—are put in harm’s way due to lack of responsibility and accountability, nonobservance of the rule of law, absence of

more convenient for them.

Another major accomplishment of the PCSO for the year was receiving a recommendation for ISO certification, after hurdling the second-stage audit conducted by TÜVRheinland on December 17 and 18 at the PCSO head office.

This achievement is in line with Executive Order 605, series of 2007, which requires “all departments and agencies of the Executive branch, including all governmentowned and -controlled corporations and government financial institutions,” to adopt a Quality Management System and obtain ISO certification.

In 2016 we will pursue other strategies to improve service and product delivery. These include the implementation of computerized accounting and human-resource processes, further branch expansion, and the development of new games and the enhancement of existing ones.

We are grateful to the public for supporting the PCSO and being our partners in our mission of charity.

In behalf of the PCSO, I extend my sincere wishes for an abundant and productive year. As we enter 2016, let us reflect on how we may, in our individual capacities, contribute to the task of helping and uplifting each other and renewing and strengthening our hearts for charity.

A joyful, peaceful and prosperous New Year to all!

691 ambulances all over the country, from March to December this year, mostly in the Visayas and Mindanao.

To make it more convenient for Filipinos nationwide to receive these various forms of assistance, the PCSO continues to open more branch offices nationwide, and succeeded in doubling the number of its branches early this month.

From the initial 25 branches in 2010, the start of the Aquino administration, the PCSO now has 50 branches around the country.

Branch expansion started in 2012, and eight branches were opened this year alone.

Also in line with this is the expansion of the Lotto outlet network, which as of November has 9,398 outlets.

To further make its services more accessible to those seeking medical assistance, the PCSO rolled out its At Source Ang Processing (Asap) Program in April this year.

Asap puts a PCSO help desk in partner-hospitals, which to date number nine—St. Luke’s Medical Center Quezon City and Global City, East Avenue Medical Center, Las Piñas General Hospital and Satellite Trauma Center, Ospital ng Muntinlupa, Quirino Memorial Medical Center, Jose R. Reyes Memorial Medical Center, Rizal Medical Center and National Children’s Hospital. Other hospitals will be joining the program next year.

Under the Asap Program, patients confined at partner-hospitals can file their requests for financial assistance under Imap at the PCSO desks there, making it faster and

Atty. Rojas is vice chairman and general manager of the Philippine Charity Sweepstakes Office.

integrity and inability to effectively respond to the needs of the people.

The possible ethical violations are summed in the “6 evils or 6 Cs of PPPs.” The evils are corruption, clientism, capture, concealment, conflict of interest and complacency. Like PPPs, where public and private proponents are involved, these evils are also practiced and propagated by public and private persons.

Corruption is the use of an office, public or private, for personal gain.

The most obvious form is bribery.

A public servant, rather than serving the public, serves the interest of the briber and himself/herself. Clientism is the funneling of resources to favor a select group. In clientism, former or current clients and friends benefit. Affiliation takes precedence.

Capture is providing rents to specific players. When a private proponent captures a public entity, the latter loses its independence, and is beholden to the payor of the rent.

Concealment is the nondisclosure of information needed to have an informed choice or decision curtailing participation. The public is kept

in the dark, forcing the people to just rely on press releases.

Conflict of interest arises when a public official has a substantial interest over a transaction or business, where the rights or duties of his/her office may be opposed to or affected by the faithful performance of official duties. The public official, in this case, serves two masters. Complacency is simply doing nothing worthwhile or innovative due to a tradition or history of dependency, self-righteousness, risk-averseness or contentment.

In the world of PPPs, these six evils become manifest when traditional procurement is advanced without considering out-of-the-box options, like PPPs; when a public entity has already preidentified, prior to the competitive selection process, a private partner that will implement the PPP project; and when a PPP project is awarded to a corporation as a reward for campaign contributions.

When PPP contracts, even the nonconfidential aspects, are not made available to the public; when See “PPPs,” A7

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opinion@businessmirror.com.ph

Opinion

Parol evidence rule

Miss and Mister Universe of the accountancy profession

BusinessMirror

Atty. Lorna Patajo-Kapunan

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Joel L. Tan-Torres

legally speaking

ow that everyone is experiencing the holiday rush, I would like to divert your attention to the “Parol evidence rule,” which is covered by Rule 130, Section 9 of the Rules of Court. Unlike the colorful lanterns that we usually see hanging during the Christmas season, the Parol evidence rule prohibits any party from presenting any evidence that will change, modify or vary an agreement which has been reduced to writing (Heirs of Del Rosario v. Santos, G.R. No. L-46892, September 30, 1981). This means that, when an agreement has been reduced to writing, the parties cannot be permitted to adduce evidence to prove alleged practices which, to all purposes, would alter the terms of the written agreement. Whatever is not found in the writing is understood to have been waived and abandoned. The courts cannot stipulate for the parties or amend the latter’s agreement, for to do so would be to alter the real intention of the contracting parties when the contrary function of courts is to give force and effect to the intention of the parties (Norton Resources and Development Corp. v. All Asia Bank Corp., G.R. No. 162523, November 25, 2009).

You would then wonder why on Earth am I discussing this concept at Christmas. Well, it is because during Christmas, many of us go to a shopping spree using credit cards. For the information of everyone, the relationship between the credit-card issuer and the credit-card holder is a contractual one that is governed by the terms and conditions found in the card-membership agreement.

Such terms and conditions constitute the law between the parties. In case of their breach, moral damages may be recovered where the defendant is shown to have acted fraudulently or in bad faith.

In a case involving a creditcard holder’s claim for damages arising from the suspension of her credit privileges due to her supposed failure to reapply for their reaction, where she insisted that she was not informed of the condition for reactivation, the Honorable Supreme Court held that, considering the terms and conditions did not state that the cardholder must submit the new application form in order to reactivate her credit card, to allow the bank to impose the duty to submit the new application form in order to enable the cardholder to reactivate the credit card would contravene the Parol evidence rule. Indeed, there was no agreement between the parties to add the submission of the new application form as the means to reactivate the credit card. When the cardholder did not promptly settle her outstanding balance, the bank sent a message on March 19, 1992, demanding payment with the warning that her failure to pay would force it to temporarily suspend her credit card effective March 31, 1992.

The bank then sent another demand letter dated March 31, 1992, requesting the cardholder to settle her obligation in order to lift the suspension of her credit card and prevent its cancellation.

In April 1992 the cardholder paid her dues to the bank. In the con-

PPP. . .

Continued from A6

the head of an implementing agency is the related to the CEO of the bidding entity; when eligibility requirements are so specific that only one can participate; and when officials of the regulatory agency do a cut-and-paste approach to tariff-setting, PPPs are placed in peril. The public good and the general welfare are not served.

These 6 Cs, or evil results in the 6 Cs, have harmful effects. These are lack of consistency, competition, compliance, confidence, continuity and higher cost. There is lack of consistency that harms PPPs when policies, procedures and programs vary per project and proponent. There is

When an agreement has been reduced to writing, the parties cannot be permitted to adduce evidence to prove alleged practices which, to all purposes, would alter the terms of the written agreement. Whatever is not found in the writing is understood to have been waived and abandoned. text of the contemporaneous and subsequent acts of the parties, the only condition for the reinstatement of her credit card was the payment of her outstanding obligation. Had it intended otherwise, the bank would have surely informed her of the additional requirement in the letters that is sent to the cardholder. That it did not do so confirmed that they did not agree on having her submit the new application form as the condition to reactivate her credit card. Thus, the Supreme Court upheld the award of P100,000 as moral damages, exemplary damages, attorney’s fees and cost of suit (BPI Express Credit Card Corp. v. Armovit, G.R. No. 163654, October 8, 2014, 737 SCRA 542).

Hence, when drafting a contract or an agreement, take note of the fine prints. Well-settled is the rule that in case of doubt, it is the intention of the contracting parties that prevails, for the intention is the soul of a contract, not its wording which is prone to mistakes, inadequacies, or ambiguities.

To hold, otherwise, would give life, validity and precedence to mere typographical errors and defeat the very purpose of agreements (Salun-at Marquez and Nestor dela Cruz v. Eloisa Espejo, et al. G.R. No. 168387, August 25, 2010).

For questions, you may e-mail me at lpkapunan@kapunanlaw.com. tailor-fitting of awards according to the needs and interests of a select few.

If corruption is the rule, then there will be no true competition. The prevalence of this evil will destroy market confidence and hamper the delivery of services. In rushing projects, there could be midnight and sweetheart deals. All these happen in clear contravention of laws and policies.

PPP projects will not be futureproofed if these evils persist. There will be no continuity as PPPs become person-based rather than people- or public welfare-driven. Taken together, rather than being affordable, project costs will soar. Higher costs would mean higher end-user fees or higher subsidies. This could lead to bankruptcy, default, moral hazard risks, white elephant projects and waste of

DEBIT CREDIT

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ust as Miss Universe Pia Alonzo Wurtzbach was able to accomplish an outstanding milestone when she bested the rest of the universe in winning her crown in December, there are a lot of Miss/es Universe or Mister/s Universe winners in the accountancy sector who have made extraordinary achievements in 2015.

This year, as chairman of the Board of Accountancy (BOA), I have personally witnessed and worked with several individuals in our accountancy sector in the BOA’s efforts to uplift the level of the profession. These individuals have generously contributed their time, effort and resources in the activities of the BOA under its “Expanding Horizons” initiative. Because of their exemplary work, they have attained success and the accolade of the various stakeholders and parties that they interact with. Truly, they deserve the honor of being recognized as the Miss and Mister Universe of the accountancy profession.

I wisely will not name them at this time for the reason that I may miss acknowledging some individuals in the process. Moreover, I know that they will be more comfortable doing their great efforts behind the scene with as little publicity as possible.

These unnamed individuals have contributed immensely in the formulation and the implementation of the six-point Expanding Horizons strategic plan for the accountancy profession. This strategic plan has been finalized last month and will serve as the road map and vision for all accountants in uplifting the standards and level of the accountancy profession.

The strategic plan consists of the following thrusts: 1) institute quality and governance measures; 2) effectively regulate the profession; 3) enhance image and reputation of the accounting professional; 4) enhance stakeholders’ involvement and cooperation; 5) institute structural change; and, 6) provide communication and assistance mechanisms.

In 2015 the major accomplishments in putting in place governance measures include the

continued journey toward the Performance Governance System institutionalization, the forming of the partnership with Integrity Initiative Inc., the issuance of the updated Code of Ethics, and the governance reform and oversight over the accredited professional organization and sectoral accountancy organizations.

The quality-enhancement measures put into place are the preparation for the implementation of Asean Mutual Recognition Arrangement for Accountancy Services; the search for Most Outstanding Expanding Horizon Organization Award; the forging of the partnership with the Association of Chartered Certified Accountants; the renewed quality inspection of accounting schools; the launch of the BOA Internship Program; and the utilization of the ACPA Assessment Tool. In all of these activities, a number of able and supportive accountants were involved in achieving the major (and minor) successes in the various activities.

The BOA, in coordination with various government offices and the different accountancy sectoral organizations, implemented several regulatory initiatives. The implementation of the quality assurance review (QAR) on the practicing Certified Public Accountants (CPA) was the focus in 2015. There were several dialogues conducted with the various stakeholders on the QAR; and the new rules and regulations for this program have been finalized by the BOA for the approval of the Professional Regulations Commission (PRC). The Philippines Institute of CPAs (Picpa) also organized its own voluntary QAR program to prepare for the full-blown implementation of the QAR of the BOA.

Monday, December 28, 2015

The BOA effected several measures on the streamlining of administrative investigation process, the posting of the list in the BOA web site of CPAs allowed to engage in public practice, and promoting the adoption of cybersecurity measures to secure the vulnerable accountancy platforms of enterprises.

Several regulatory measures were recommended by the BOA that will improve the regulatory environment. These include the rules on prescribing a quality accreditation checklist; the conduct of verification of the principal place of office of practicing accountants; the requirement for the submission of a certificate of validation services on the financial statements; the submission of engagement reports of accredited accountants in public practice; accreditation of CPAs in commerce and industry; accreditation of CPA partners and staff; and the delegation of the signing of accreditation papers. These should have been implemented in 2015, but due to the bureaucratic logjam, if not inefficiencies in the PRC, these measures are still pending up to this time. However, it is expected that these will all be put in place in early 2016.

A notable activity of the BOA was its pursuit of a proactive campaign against erring CPAs. It is clear that the BOA is serious in safeguarding the interest of the general public and the professional CPAs, most of whom comply with their obligations and responsibilities and practice the elements of quality work and good governance. The BOA is particularly resolute in detecting and penalizing the erring CPAs whose ill practices not only give them an unfair advantage over the rest of the CPAs, but besmirch the reputation of the entire accountancy profession.

The year 2015 witnessed the launch of several publications on the accountancy sector. The BOA released the first issue of the News Ledger magazine, containing the many activities of the BOA; the Highest Standards Technical Journal, containing articles on relevant accounting issues written by accountants; and the Debit Credit column in the BusinessMirror, where accountants take turns in contributing articles of business and accounting issues. These publications give the opportunity to accountants to publish their

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literary creations and to showcase their talents and insights.

Project ACCT (accountant) was launched during the Annual National Convention of accountants in Puerto Princesa in November. I released the audio-visual presentation (AVP) clip, entitled “I am Accountant,” which aims to enhance the image and reputation of the accountant. The AVP also clearly promoted the pride and self-esteem in being accountants.

The accountancy profession was able to get together the various stakeholders and to involve them in various cooperative undertakings.

These included the holding of two accountancy leaders and stakeholders forum; the conduct of dialogues with affiliated accountancy certification bodies; the tie up with various developmental partners, such as the World Bank, ADB and others; the formation of the Council of Accreditation Regulators, the Academic Industry linkages; the Citizens Participatory Audit for CPAs involving the collaboration of the Commission on Audit, Bureau of Customs, Picpa and BOA; discussions on accountancy matters with the Department of Education, Commission on Higher Education, Technical Education and Skills Development Authority, Cooperative Development Authority, Department of Finance, Securities and Exchange Commission, Bangko Sentral ng Pilipinas, Bureau of Internal Revenue and Insurance Commission; and the meetings with the accountancy regulators and professional organizations of other countries.

There was close coordination and teamwork of the different organizations in the various sectors, such as the Picpa, Association of CPAs in Public Practice, Association of CPAs in Commerce and Industry, Government Association of CPAs, National Association of CPAs in Education and the National Federation of Junior Philippine Institute of Accountants.

To be continued Chairman Joel L. Tan-Torres is the chairman of the Professional Regulatory Board of Accountancy. He is a Certified Public Accountant who placed No. 1 in the May 1979 CPA Board Examinations. He is concurrently a tax partner of Reyes Tacandong & Co., CPAs. He was the former commissioner of the Bureau of Internal Revenue.

Fight poverty from the radical center

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he main casualty of Washington’s endless partisan squabbling is a pragmatic approach to policy—meaning one that prefers results to noise. Ideological warriors of left and right say centrism of this kind is mere cover for cynical deal-making, splitting the difference and substituting platitudes for principles. They’re wrong, and proof is at hand.

A working group convened by the (conservative) American Enterprise Institute and the (liberal) Brookings Institution has just produced an excellent report on poverty. Its recommendations don’t take a weak-willed average. They combine the strongest parts of what Democrats and Republicans in Congress think on this issue.

Crucially, the group began by accepting three general truths that often

people’s hard-earned money.

Now that we know what should be avoided and addressed, we should be proactive in building an ethical PPP community where content and process are both ethical. There is hope.

2016 offers another year of opportunities and challenges for prosperity and reform. Merry Christmas to all!

PPP Learn No. 5 ‘Alir’

One way of curbing the six evils of PPP and mitigating the six harmful effects is the practice of four imperatives. Borrowing from Makrydemetres, A. (2002), Dealing with ethical dilemmas in public administration: the “Alir” imperatives of ethical reasoning, all PPP stakeholders must adhere to:

derail debate before it begins: Ablebodied adults should work; two committed parents are better than one; and schools must do more to prepare students for careers. In each of those areas, the group managed to reach consensus on policy. To encourage work, the group endorses some traditionally liberal ideas: modestly raising the minimum wage; increasing state payroll taxes to fund paid medical and family leave; of-

fering child-support debt forgiveness for fathers who work; “banning the box” that is used to screen out job applicants with criminal records; and subsidizing wages for low-income workers and the hard-to-employ. Traditional conservative ideas also won support: creating stronger incentives for workers not to claim disability benefits; tying housing benefits and food stamps to work; and expanding “workfare” programs for those unable to find jobs.

Incidentally, one of these recommendations—increasing the value of the earned income-tax credit for single adults—has been backed by both President Barack Obama and House Speaker Paul Ryan. That’s great.

The question is why the entire program hasn’t been backed by both.

On education, the group’s approach was no less Catholic: It called for increasing and improving pre-K and early learning opportunities, as liberals want, and expanding school choice and teacher evaluations, as conservatives want. The group wants more focus on “social-emotional learning”—standards of behavior that are essential to workplace success. It calls for expanding career and technicaleducation opportunities by encouraging community colleges to offer more employment-oriented classes and businesses to offer more apprenticeships. Bloomberg View

Sports BusinessMirror

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NBA RESULTS Washington 111, Brooklyn 96 Toronto 111, Milwaukee 90 New Orleans 110, Houston 108 Miami 108, Orlando 101 Charlotte 98, Memphis 92 Boston 99, Detroit 93

onday,

December 28, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

Atlanta 117, New York 98 Indiana 102, Minnesota 88

athlete of the year

By Josh Dubow

The Associated Press

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AKLAND, California—Stephen Curry’s greatness as a basketball player can be measured by his record-setting shooting numbers that are changing the game.

His immense popularity derives from something less tangible.

While many National Basketball Association (NBA) greats rely on uncommon height and athletic ability that average fans can only dream of having, Curry’s game relies on the traits that every casual player can work on: shoot, dribble and pass.

The difference is, perhaps nobody ever has put those three skills together the same way Curry has the past year as he has dominated on the court and made the once downtrodden Golden State Warriors the NBA’s must-watch team.

“The way that I play has a lot of skill but is stuff that if you go to the YMCA or rec leagues or church leagues around the country, everybody wants to shoot, everybody wants to handle the ball, make creative passes and stuff like that,” he said. “You can work on that stuff. Not everybody has the vertical, or the physical gifts to be able to go out and do a windmill dunk and stuff like that. I can’t even do it.”

That’s about all Curry is unable to do on the basketball court. His amazing year, in which he won Most Valuable Player, led Golden State to its first title in 40 years and helped the Warriors get off to a record-setting start this season, earned him The Associated Press 2015 Male Athlete of the Year.

Curry finished first in a vote by US editors and news directors, with the results released on Saturday. He joined LeBron James, Michael Jordan and Larry Bird as the only basketball players to win the honor in the 85 years of the award. Curry beat out golfer Jordan Spieth, who won two majors, and American Pharoah, who became the first horse since 1978 to win the Triple Crown.

While American Pharoah got three more first-place votes than Curry’s 24, Curry appeared on 86 percent of the 82 ballots that ranked the top 5 candidates. More than one-third of the voters left American Pharoah off their list.

“That’s a real honor,” Curry said. “I’m appreciative of that acknowledgement because it’s across all different sports.... It’s pretty cool.”

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Golden State Warriors’ Stephen Curry beats Triple Crown winner American Pharoah and Masters and US Open champ Jordan Spieth for the The Associated Press 2015 Male Athlete of the Year award. AP

Curry has become the face of the NBA this past year. His jersey is the best seller in the league, his team’s games get record television ratings at home and in opposing markets and even his 3-year-old daughter Riley became a star by overshadowing her dad at playoff news conferences.

Even his intricate warm-up routine has become a show for fans who get out early or even sometimes on TV pregame shows. He does an elaborate two-ball dribbling routine, works on passes and shots with both hands, takes jump shots from just inside half court and then caps it with a long-range shot from the tunnel on the way back to the locker room.

“Steph actually looks different,” ESPN analyst Jalen Rose said. “Like the best player in the league usually is also physically opposing—6-6 plus, scowl on his face, menacing.

With the attitude that we appreciated because like a Michael Jordan or Shaquille O’Neal, or Kobe Bryant, you know, just a cutthroat nature. Steph allows us into his living room. We see

him on a national stage be a son, a dad, a husband, a father, a brother. And he does all of it while continuing to improve.”

Curry has improved his scoring from 23.8 points per game to 30.8—the biggest one-year jump ever by an MVP—prompting Rose to say that Curry could be the most improved player and repeat as MVP this season in a remarkable tribute to the offseason work he put in even after winning a title He has

regulation, but this time failed to take a decent attempt as time expired and sent the game in overtime, 74-all.

Meanwhile, Rain or Shine and Talk ‘N Text clash in their own do-or-die encounter on Monday, with the winner facing San Miguel Beer in the best-of-seven semifinal series.

The Elasto Painters and the Tropang Texters collide at 7 p.m., also at the Mall of Asia Arena.

Both teams made quick work of their respective firstphase quarterfinal assignments, with Rain or Shine outlasting Blackwater, 95-90, and Talk ‘N Text edging sister team NLEX, 90-88.

Elasto Painters Head Coach Yeng Guiao hopes his players will play with different intensity compared to what they showed against the Elite as they face a top-level opponent in Tropang Texters.

Talk ‘N Text mentor Jong Uichico is also wary of their opponent, which has been a regular fixture in the playoffs.

“Rain or Shine plays hard and they’ve been there many times while some of my players are new here,” Uichico said.

Rick Olivares bleachersbrew@gmail.com

Bleachers’ Brew

Is Steph Curry the best basketball player in the world today?

ONE of the many comments made post-Golden State’s 89-83 win over Cleveland on Christmas Day was, “There goes the theory that the Cavaliers lost in last year’s National Basketball Association [NBA] Finals because they missed Kevin Love and Kyrie Irving.”

Another was, “Steph Curry has eclipsed LeBron James as the world’s best player.”

Let’s tackle the first.

Dallas 118, Chicago 111 L.A. Clippers 109, Utah 104 Philadelphia 111, Phoenix 104 Portland 105, Cleveland 76

Jackson: Curry ‘hurting the game’

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BATANG PIER IN SEMIS LOBALPORT weathered a Barangay Ginebra San Miguel endgame miracle, pulling off an 84-83 overtime thriller to move to the semifinals of the Philippine Basketball Association Philippine Cup at the Mall of Asia Arena.

Stanley Pringle was clutch in the extra inning for Batang Pier, who also needed a good break in the closing seconds to advance to the best-of-seven semis against top-seed Alaska.

Pringle and Terrence Romeo tallied 25 and 23 points, respectively, to oust the crowd-favorite Kings, who came from a 90-88 overtime win over Star on Friday.

Trailing 83-84 with eight seconds left, Ginebra trapped Pringle near the midcourt hoping for a five-second hogging violation, but the officials did not blow their whistle, allowing Batang Pier to escape with the win. Anthony Washington and Joseph Yeo netted 13 and 11 markers, respectively, for GlobalPort, which earned its first semis stint in the league.

Greg Slaughter led Ginebra with 25 points and 18 rebounds, while LA Tenorio added 18. Tenorio had the chance to win it in

San Antonio 101, Denver 86

It’s hard to compare a regular season game and a finals series because of the circumstances and what is at stake. No one wins a championship with a good 60 percent of the season yet to be played.

However, what that game counts for is home court advantage in the playoffs, bragging rights, and a mental edge in head-to-head matchups. And further to the point, injuries, as

Joel Orellana

are breaks are part of the game.

The Cavs’ Irving was only in his third game back and, couple that with the combined atrocious shooting with Kevin Love, they pretty much left LeBron James to his own devices in the end game. But, to be fair, James missed three crucial free throws and four shots at point blank range while making two baskets; both dunks.

Steph Curry, likewise, made two baskets (from four attempts in the fourth period) with both crucial layups to see off the Warriors’ win.

Obviously, the Warriors are a better team than the Cavaliers. The word “team” is the optimal difference. Cleveland was built around one man, LeBron James, who was surrounded by other players to complement his game. That changed in his second stint in Ohio when he joined Irving who was then the team’s star.

Hoping that lightning would strike like it did in Miami, Love was enticed to come over. Then they started adding pieces.

Golden State, on the other hand, was rebuilt somewhat differently. They built two very good “teams.”Their front court and coaching staff and the players. In 2012 when they brought onboard Bob Myers initially as assistant general manager

become much more efficient scoring on drives and has amazingly added range to his already record-setting threepoint shooting. Curry can consistently make shots from 28 feet out as he is on pace to shatter his own record of threepointers made in a season.

The drive to succeed is fueled by the fact that Curry got no major scholarship offers coming out of high school, he was the third point guard taken in the 2009 draft and he settled for a below-market contract extension three years ago because people questioned his durability following ankle injuries.

VEN with the best record, and arguably the best player, in the league, the Warriors are not without their critics.

They beat a shorthanded team to win the championship last year, the haters lament, accurately. They’ve had a soft schedule to start the year, naysayers say, having avoided matchups against the league’s best teams until their Christmas rematch with the Cleveland Cavaliers, which is also true.

But on Christmas the Warriors, who played without starter Harrison Barnes, handled the nearly full strength Cavs by a score of 89-83 and one might think the doubters would be holding their tongues, especially when it comes to Stephen Curry, who is playing an otherworldly brand of basketball this season and was, on Saturday, named The Associated Press Male Athlete of the Year.

None of that impressed former Warriors coach and current ESPN commentator Mark Jackson who, during Friday afternoon’s telecast said of Curry that “to a degree, he’s hurting the game.”

For some context, Jackson explained that he has watched high-school kids and other aspiring players become obsessed with jacking up ridiculously long shots because they want to be like Curry.

It should be noted, however, that Curry’s remarkable skill at shooting the long ball is only one facet of his game.

The game against the Cavs was essentially locked up with back-to-back driving layups late in the fourth quarter by the reigning Most Valuable Player (MVP).

Curry doesn’t have the physical stature of what we’ve come to expect from the National Basketball Association’s (NBA) elite. At 6-foot-3 inches tall and 185 pounds, he never had the winning ticket to the genetic lottery like so many of the league’s 7-footers.

For aspiring players who don’t happen to have the height of a small giraffe, it’s no wonder Curry’s style would be one to emulate.

Beyond the wizardry Curry displays on the court—to the point where opponents have begun broadcasting his pregame warm-up routine—his popularity has grown as he has shown how different he is from the prototypical NBA superstar.

Absent from Curry’s repertoire is the ego and hubris of some other league-topping talents who have “taken their talents” away from their home towns in search of championship rings or engaged in melodramatic and petulant trade demands as their contracts expire.

Curry has shown such a down-to-earth everyman attitude on and off the court that his fame has trickled down to his family, with both his wife, Ayesha, and his daughter, Riley, enjoying their own celebrity status. MCT

Chan-Alido wrests control with 62

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IDRIC Chan and Ira Alido put on a fiery birdie-eagle windup to fire a bogey-free 62 and seize a onestroke lead over Ryan Monsalve and Lanz Uy at the start of the fifth National Doubles Amateur Golf Championship at Camp Aguinaldo Golf Club in Quezon City on Sunday.

The Chan-Alido tandem actually battled back from two strokes down off Monsalve and Uy at the back, and grabbed the lead by birdying the par-3 17th and closing out with an eagle under the four-ball (best ball) format.

Tied with the Chan-Alido and Jobim CarlosIñigo Raymundo pairs with 32s after nine holes, Monsalve and Uy birdied the first two holes at the back but stumbled with a bogey on the 17th and needed to birdie the 18th to card a 63 and stay in early contention in the National Golf Association of the Philippines’s (NGAP) final event for the season, held under the PLDT Group National Amateur Golf Tour and sponsored by the MVP Sports Foundation, Smart, PLDT and Metro Pacific Investment Corp.

Carlos, who ruled the inaugural staging of this event conducted and organized by the NGAP at the AFP Golf Club in 2011 with Raymundo Gonzales and Raymundo flubbed a birdie putt on the 18th and settled for a 64, while Jama Reyes and Tom Kim put in a 65 to remain in the hunt in the event hosted by the CAGC. Tommy Manotoc and son Gabriel combined for a 66 for sixth, Raymart Tolentino and Carlo Villaroman shot a 67 in a tie with Matthew Abalos and Don Petil, while defending champion Rupert Zaragosa and new partner Joey Magcalayo gunned down six birdies but fumbled with the same number of bogeys, including on Nos. 1 and 18, as they dropped to joint ninth at 68 with Jolo Magcalayo and former pro Eddie Bagtas in the centerpiece Group I category.

Meanwhile, Jun Bautista and Iñigo Bilbao assembled a 69 to share the Group II lead with Tony Olives and Rene Unson with the Jeff Razon-Chester Calpotura and Vic SeRaffy Sempio tandems carding 73 and 74, respectively.

Marvi Monsalve and Dania Uy combined for a 66 to take the early lead in Group III with Kristine Torralba and Ashia Nocum pooling a 74 and three other pairs still to complete play at press time.

Ira Alido (foreground) and Aidric Chan study the line of their putt »en route to a pacesetting 66 in the National Doubles tilt at Aguinaldo.

then promoted to general manager a year later.

Myers was a former player agent who joined the Warriors’ front office and brought a different outlook from organization people. His shrewdness allowed the team to draft not the best players, but ones who could fill roles on a team. They brought in Jerry West who has immensely helped the team and this past season. There was the coaching staff that began with Steve Kerr who played under two coaches who espoused a team-first policy in Phil Jackson and Greg Popovich. They brought in Alvin Gentry who was with Mike D’Antoni during the Phoenix Suns’ seven-seconds-or-less days and that explains their high-scoring ways. There’s also Ron Adams who was also responsible for turning Boston into a good defensive team. They also brought in young guns in Luke Walton who has been acting as interim coach with Kerr out because of surgery and most recently, they hired Steve Nash to help out.

Talk about great basketball minds.

Team-wise, they selected the unsexy picks in Steph Curry, Harrison Barnes and Draymond Green. They brought in players who didn’t seem to make an impact, as their best years were said to be behind in Shaun Livingston and Leandro

Barbosa. They brought in stars from their previous teams to play lesser roles. The stats of Andrew Bogut and Andre Igoudala have gone down with their time in Golden State the trade off is they are part of a championship machine.

They have a plethora of players—Curry, Klay Thompson, Igoudala, Livingston and Green— who can play multiple positions, and several players who are very good ball handlers and who make very good decisions with the ball.

Sure, it is hard to beat a team when many players can light it up. They are tops in offense and are ranked 18th on team defense. They pretty much overwhelm foes with superior firepower.

That sure is a pretty good team on both sides of the court there.

And then there’s Curry.

In a video where the reigning NBA Most Valuable Player (MVP) reads from a draft scouting report that described his explosiveness and athleticism as “below standard.”

Added the report, “He needs to considerably improve as a ball-handler. He will have limited success at the next level. Do not rely on him to run your team. Stephen must develop as a point guard in order to make it in the league.”

Well...last NBA season, Curry was named MVP, a berth on the All-NBA First Team, an All-Star and Three-Point Champion (in contrast, James was named to the All-Star and All-NBA First Team).

He capped it all with an NBA championship. This season, he has led his team to a 28-1 record. The Warriors look too strong to repeat as champions, while Curry looks to bag his second consecutive MVP award. Furthermore, he is leading the league in scoring (increasing his output by 9.2 points from his career numbers). Curry is also shooting at a career-best .512 accuracy rate this season, while leading the league in touches with 98 touches a game. He also has two International Basketball Federation World Cup gold medals and looks to add an Olympic gold medal to his trophy chest in the 2016 Rio Olympics.

If this season wasn’t the Kobe Bryant farewell tour, Curry would lead the All-Star Game fan balloting (Mamba is so far the leading vote getter with 719,235 to the 510,202 of the latter) with James a far third with 357,937.

It doesn’t take any stretch of the imagination that even without an Olympic gold medal around his neck, Steph Curry is the best player in the game today.