BusinessMirror February 16, 2015 by BusinessMirror

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

U.N. Media Award 2008

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TfridayNovember Monday, February18, 16,2014 2015Vol.Vol.1010No.No.40130

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APPELLATE COURT SUSTAINS RULING THAT PIATCO OWNS TERMINAL 3 UNTIL FULL COMPENSATION IS PAID

CA: Govt still can’t take over Naia 3 T

By Joel R. San Juan

HE Court of Appeals (CA) has insisted that Philippine International Air Terminals Co. Inc. (Piatco) still has the right to exercise ownership over the Ninoy Aquino International Airport (Naia) Terminal 3, until the government has released the P16billion just compensation earlier awarded to the firm by a lower court.

In a two-page resolution penned by Associate Justice Franchito Diamante, the CA’s Former Special Thirteenth Division denied the motion filed by government subcontractors Takenaka Corp. and Asahikosan Corp. seeking the reversal of its decision issued on October 20, 2014. T he appel l ate cou r t r u led last October 20 that Pasay City Regional Trial Court (RTC) Branch 117 Presiding Judge Eugenio de la Cruz “gravely abused its discre-

tion” in allowing the government to deposit in an escrow account $371.43 million, or P16 billion, and imposing conditions for its release to Piatco. The said omnibus order was issued pursuant to the decision dated May 23, 2011, of the RTC in Pasay City, ordering the government to pay Piatco just compensation in the amount of $175,787,245, less the proferred value (P3,002,125,000). Continued on A9

U.S. ECONOMY SEEN TO TAKE MINImAL HIT FROM PORT MESS

n any given day, up to a dozen ships handle more than $1 billion worth of goods in the mammoth ports of Los Angeles and Long Beach, the busiest seaport of the US. Thousands of trucks carry off 40 percent of the nation’s incoming container cargo each year, feeding into an extensive highway and rail network that brings electronics, cars and toys to consumers and businesses throughout the nation. But, despite the enormous volume of goods flowing through the ports in San Pedro Bay, and a long-simmering labor dispute that threatens a shutdown of 29 West Coast ports, economists and trade experts said closings would have very little effect on the broader US economy. That’s because the trade of goods through US ports

represents only a relatively small fraction of the nation’s total economic output. Although a shutdown would create interruptions and higher costs for businesses relying on trade with Asia, experts said those losses would be offset by greater demand at other ports or for airlines moving freight. “There are winners and losers, and that’s where the rub is,” said Christopher Thornberg, a founding partner of Beacon Economics in Los Angeles, who has studied previous local port shutdowns. “The ports of LA and Long Beach are a convenient source of moving stuff in and out of our economy. Now people are inconvenienced. But inconvenience has never brought down an economy.” See “U.S. economy,” A2

PESO exchange rates n US 44.3960

MEDICINE BUDDHA A temple worker cleans the statue of the Bodhisattva. Commonly called by Filipino-Chinese as the Medicine Buddha, Bodhisattva is believed to cure illness of suffering using his teachings. Located near Chinatown in Manila, the Sen Guan Temple (Chinese Temple) is expected to draw tourists as the Chinese New Year approaches. NONIE REYES

MNTC may spend another ₧5B to extend Nlex to Tondo

FRANCO: “Right now, Segment 10 will end in C-3, and we need to further extend it to R-10. It was part of the original Segment 10. But when we designed the alignment, we thought that portion from C-3 to R-10 could accommodate the traffic along the existing road.”

By Lorenz S. Marasigan

he Manila North Tollways Corp. (MNTC) is planning to further extend the North Luzon Expressway (Nlex) all the way to Tondo, Manila, a move that would require it to invest P5 billion more into the thoroughfare. Specifically, the toll-road arm of Metro Pacific Investments Corp. is seeking to extend Segment 10 of its multibillion-peso Harbor Link initiative. The said alignment is still at the early stage of construction, and

is expected to be completed in 2016. “Right now, Segment 10 will end in C-3, and we need to further extend it to R-10. It was part of the original Segment 10. But when we designed the alignment, we thought that portion from C-3 to R-10 could accommodate the traffic along the existing road,” MNTC President Rodrigo E. Franco said in an interview. “But, with the traffic now, the road will not accommodate the congestion, so we need to build an additional 2 or 3 kilometers worth about P5 billion.” He said his company aims to

start the construction of the extension within the year, which would prompt his group to tap the debt market for capital. “If that project starts within the year, then we need to borrow. But we haven’t decided yet as to the instrument. Still, we are looking at the same options: bank loans and capital markets,” Franco said. Segment 10 is a 5.65-kilometer elevated alignment that will link the expressway and MacArthur Highway to Manila’s Port Area district. Continued on A2

n japan 0.3732 n UK 68.3343 n HK 5.7261 n CHINA 7.1086 n singapore 32.7380 n australia 34.3888 n EU 50.6336 n SAUDI arabia 11.8342 Source: BSP (13 February 2015)

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BusinessMirror

Monday, February 16, 2015

Manila urged to push use of PPPs during Apec meet governance standards, and environmental assessments, have not been made known. In this regard, Navarro said Apec talks on infrastructure development must also push for the disclosure of these important details about the AIIB. Apart from these, Navarro said the Philippines must also raise concerns on regional cooperation for the improvement of the transport, telecommunication and information, and energy sectors. In terms of transportation, Apec talks must focus on maritime safety and air-transport networks. The country is one of those with a dire need to expand and improve its air-

Continued from A12

“But this is a medium-term trend and it is still necessary to ensure that sources, whether domestic or external, are available to make infrastructure investments sustainable for the longer term,” it added. The study also said that, while the creation of China’s Asian Infrastructure Investment Bank (AIIB), which has a start-up capital of $50 billion, was a welcome development, not much was known about its financing options. Navarro said that, a year into its creation, details, such as currency risk bearing by borrowing countries,

transport sector through night landing capabilities and communications, navigation and surveillance/airtraffic management systems. On telecommunications, the discussions must focus on improvements, such as creating broadband netwtorks, in light of the ongoing Brunei Darussalam-IndonesiaMalaysia-Philippines East Asean Growth Area submarine fiber-optic cable project. Energy discussions, on the other hand, must focus on transforming the Apec into an energy-efficient region. These discussions must focus on energy supply and additional energy sources.

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US economy. . .

Certainly, many businesses would feel the pain, and have already felt it, after months of slowdowns at West Coast ports. Agricultural exporters, who ship produce to Japan, China and Australia, face canceled orders and spoiled food. Manufacturers, who rely on parts from China, are contending with work stoppages and delays. The effects of port closings would be more acute for the Southern California economy, where local jobs in trucking, rail yards and warehousing are at stake. “The port is an economic engine of Southern California,” said Sung Won Sohn, an economist and professor at California State University, Channel Islands, who is a former commissioner at the Port of Los Angeles. “If one of the cylinders doesn’t operate properly, clearly we’ll all be hurt.” Many workers in Southern California’s logistics and warehousing industries are temporary employees, who

MNTC may spend another ₧5 billion to extend Nlex to Tondo. . . The P10-billion alignment will primarily cater to port traffic and is envisioned to significantly speed up and reduce the cost of the transport of goods from Central and Northern Luzon to the country’s premier harbors. The alignment is part of the company’s Harbor Link project, which also involves Segment 9, a 2.42-km road that will link Nlex to MacArthur Highway in Valenzuela City. The P1.59-billion alignment is expected to be launched commercially by March.

Aside from these initiatives, the company is also pursuing the integration of the Nlex and the Subic-ClarkTarlac Expressway (SCTEx). Franco said his company will start linking the two expressways in March. Currently, the firm is looking for a contractor that will undertake the civil works of the integration. Coupling the two expressways would require the firm to invest P650 million, which would translate to a seamless connection between the

two thoroughfares, both of which are owned and managed by the tollroad business of tycoon Manuel V. Pangilinan. “The toll-collection technology that is available to Nlex motorists will now be used along the SCTEx, making travel faster and more efficient,” Franco said. For his part, Metro Pacific Tollways Corp. President Ramoncito S. Fernandez said the integration is only the beginning of his company’s plan to link the countryside and Metro

FEBRUARY 16, 2015 | MONDAY

TODAY’S WEATHER

WEAK NORTHEAST MONSOON AFFECTING THE EASTERN SECTION OF NORTHERN LUZON. EASTERLIES AFFECTING THE EASTERN SECTION OF SOUTHERN LUZON AND VISAYAS.

Northeast Monsoon locally known as “Amihan”. It affects the eastern portions of the country. It is cold and dry; characterized by widespread cloudiness with rain showers. Easterlies are winds coming from the East passing over the Pacific Ocean. These are warm and moist in nature; causing hot weather and generating thunderstorms.

(AS OF FEBRUARY 15, 5:00 AM)

LAOAG CITY 20 – 30°C

23 – 32°C

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TUGUEGARAO

20 – 29°C

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SBMA/CLARK 22 – 32°C METRO MANILA 23 – 31°C

TAGAYTAY CITY 20 – 29°C

21 – 30°C

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18 – 28°C

TACLOBAN

24 – 31°C

23 – 30°C

20 – 30°C

CAGAYAN DE ORO

23 – 32°C

22 – 32°C

23 – 32°C

23 – 31°C

23 – 32°C

23 – 33°C

24 – 32°C

MOONRISE

13 – 22°C

12 – 21°C

SBMA/ CLARK

23 – 32°C

22 – 31°C

ZAMBOANGA

21 – 30°C

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

LEGAZPI

PUERTO PRINCESA CITY 23 – 31°C

METRO CEBU 24 – 31°C

TACLOBAN CITY 24 – 31°C

CAGAYAN DE ORO CITY 22– 31°C

ZAMBOANGA CITY 24 – 33°C

24 – 32°C

SUNRISE

SUNSET

MOONSET

6:20 AM

6:00 PM

3:15 PM

21 – 29°C

23 – 31°C

FULL MOON NEW MOON

24 – 32°C

24 – 31°C

24 – 32°C

ILOILO/ BACOLOD

23 – 31°C

24 – 30°C

CELEBES SEA

LOW TIDEMANILA HIGH TIDE

FEB 19

3:39 AM

0.11 METER 11:50 AM 7:47 AM Partly cloudy to at times cloudy with rain showers and/or thunderstorms Partly cloudy to at times cloudy with rainshowers

Partly cloudy skies Cloudy to at times cloudy with rain showers and/or thunderstorms

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

www.panahon.tv

SABAH

3:26 AM

SOUTH HARBOR

FEB 12

PUERTO PRINCESA

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

METRO DAVAO 24 – 32°C

FEB 17 FEB 18 FEB 19 TUESDAY WEDNESDAY THURSDAY

24 – 31°C

13 – 22°C

21 – 30°C

tion will feature a common transit ticket system for both thoroughfares. MNTC has earmarked P10 billion in capital expenditures this year to bankroll its expansion plans for all the thoroughfares it operates. The amount may still spike up should it bag sometime this year the P18-billion deal that aims to link the North and South Luzon expressways. The contract is currently at the mercy of the National Economic and Development Authority Board.

22 – 30°C

BAGUIO

TAGAYTAY

of deliberately slowing down operations to gain an upper hand in negotiations. The local union denies using the slowdown tactic. The two sides have been operating without a contract since July, when the previous six-year agreement ended. They met on Friday, but no agreement was reached. It was unclear when talks would resume. Even before the slowdown accusations, the ports of Los Angeles and Long Beach had faced some of the worst congestion in a decade, as workers have contended with much larger ships and a shortage of available trailers to haul goods from the ports. Joe LoBue, a vice president for LoBue Brothers, a citrus shipping and packing house in the Central Valley, said he started to feel the slowdown in December. The company’s peak season is from January through April, and he expects to miss most of it. TNS

METRO CEBU

LEGAZPI CITY 24 – 31°C

ILOILO/ BACOLOD 24 – 31°C

3-DAY EXTENDED FORECAST

METRO DAVAO

TUGUEGARAO CITY 19 – 29°C

BAGUIO CITY 13 – 21°C

frequency identification sticker tags as means of paying toll. MNTC said some toll barriers and toll plazas will be removed or transferred to pave the way for the integrated system. Among the barriers that will be removed are the Nlex Dau Barrier and the SCTEx Mabalacat Toll Barrier. New toll plazas will be constructed at the existing entry and exit ramps at Nlex Dau and Santa Ines. A new SCTEx Tarlac Toll Plaza will also be built. The toll collection system integra-

FEB 17 FEB 18 FEB 19 TUESDAY WEDNESDAY THURSDAY

METRO MANILA

LAOAG

could be easily sidelined if the flow of goods comes to a halt. Charlie Woo, chief executive of Megatoys, a toy manufacturer and distributor headquartered in Commerce, said the slowdown forced him to let go of more than 600 seasonal workers, in recent weeks who normally would have been assembling gift baskets for Valentine’s Day. He said he has about 80 containers worth of dolls and other toys stuck at the ports. Normally, he’d be receiving about 20 to 30 truckloads a day, but, lately, it’s been fewer than three. “My Valentine’s business was completely destroyed, and my Easter season is on the verge of being destroyed,” he said. The labor dispute between the Pacific Maritime Association and the International Longshore and Warehouse Union, which represents dockworkers, dates to last fall, when the shipping association accused union members

Continued from A1

Manila and boost socioeconomic development in the regions. “Soon, motorists will enjoy even greater convenience with the Nlex Harbor Link segments and Connector Road already being started in different phases,” he added. The integration will bring to SCTEx the modern features of Nlex’s toll collection system. These include the use of dedicated short-range communication tags, contactless and magnetic cards, and, in the future, radio

3-DAY EXTENDED FORECAST

Continued from A1

@PanahonTV

7:41 PM

1.05 METER

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Top MILF killed in 3-hour clash with BIFF-Armed Forces

commander of the Moro Islamic Liberation Front (MILF) was killed on Saturday in a firefight between the Moro group and its breakaway Bangsamoro Islamic Freedom Fighters (BIFF) in Maguindanao, the military said on Sunday. The Philippine National Police tagged fighters from both groups as the ones responsible behind the killing of 44 Special Action Force commandos during the counter terrorism operations in the province on January 25. Capt. Jo-Ann Petinglay, public affairs officer of the Army’s 6th Infantry Division, said the MILF and the BIFF clashed for three hours, beginning at 5 p.m. on Sunday at Barangay Kalbugan, Pagalungan. The MILF group was reportedly headed by Cmdr. Jack Abbas, while the BIFF was led by Commander Gani Saligan, who is under Shiek Muhiddin Animbang alias Cmdr. Karialan. During the firefight, a commander from the 108th Base Command identified as Datukong Ampuan alias Cmdr. Falcon was killed, according to Petinglay. Last week reports claimed that Abbas, leading at least 1, 000 fighters from the three base commands

of the MILF, including the 108th fought with the BIFF headed by Karialan in Pikit, North Cotabato. The MILF reportedly attacked the BIFF to show that it is still a partner of the government in the aftermath of the killing of the commandos by a joint group of the MILF and the BIFF. The military, however, later said that the reports of a clash between the two groups in Pikit was prompted by the burst of gunfire from an unidentified group, although it said no firefight ever occurred. The military confirmed that prior to the reports of a firefight, civilians in Pikit have been evacuating for two days, fearing that a clash between the two groups might occur. Mea nwh i le, t hree sold iers were wounded on Sunday in a firefight between government troops and the Abu Sayyaf Group (ASG) in Albarka, Basilan. First Lt. Sally Christine Magno, civil-military operations officer of the 104th Brigade, said soldiers fought with the ASG under Basir Kasaran alias Cmdr. Kasaran at Barangay Kuhon at around 5 a.m. She said three soldiers were wounded during the clash, while a number from the terrorists were believed wounded. Rene Acosta

Military says ex-govt execs fanning coup plot rumors

By Rene Acosta

HE military identified on Sunday some of the personalities behind the reported coup plot as former officials who had served in previous administrations, as it assured any plan to overthrow the Aquino administration will never materialize. “Talk within military circles say that a number of them have served in previous administrations and have pushed various reform agendas previously as cover for their efforts,” military Spokesman Col. Resituto Padilla said. Padilla, however, admitted he was not in possession of the reports detailing the plot against the Aquino administration and those who were behind it. The reported plan to overthrow

MATTERS A man arranges assorted colorful banig (mat) from Eastern Samar that he sells for P300 ($6.78) each in this store in Manila.

A banig is handwoven from sun-dried palm, pandan or sea grass leaves, usually used for sleeping and sitting and a part of the daily life for many in this tropical country. Roy Domingo

Tests for health worker in contact with Mers-CoV-positive patient By Claudeth Mocon-Ciriaco Correspondent

CTING Health Secretary Janette Garin said on Sunday one of 11 persons who have had contacts with a female nurse who tested positive for the Middle East Respiratory Syndrome-Corona virus (MersCoV) may have contracted the dreaded disease. Garin said the female health worker is still being observed at Research Institute for Tropical Medicine (RITM) in Muntinlupa City and will still undergo further tests. Garin said the results of the x-ray of the health worker of the Evangelista Medical Specialty Hospital in San Pedro, Laguna, showed “probable case.” The health worker had a close contact with the Filipina nurse who was admitted at the said hospital a day after she arrived on February 1 from Saudi, after experiencing symptoms of the disease—fever, body pain, cough and difficulty of breathing. Garin said the other 10 who had “close” contact with the 32-year-old Filipino female nurse deemed Mers-CoV positive were a mix of family contacts and hospital contacts. They earlier reported showing symptoms but were already sent home, according to Garin. Those allowed to go home included the nurse’s husband as they all showed negative results in the second round of laboratory tests, she added. However, “they shall remain under home quarantine until February 24 in order for us to make sure that they are all safe,” Garin said. On Friday she said that a total of 56 “close contacts” were located and were subsequently admitted at RITM. Eleven of them showed symptoms of the disease, according to Garin. Meanwhile, she said two co-passengers of the

Editor: Dionisio L. Pelayo • Monday, February 16, 2015 A3

GARIN: “With regards to Saudia Flight 860, we have contacted 115 passengers and they will be subjected to Mers-CoV testing. Considering the 14-day incubation period [February 14] will be the last day for contact tracing of the remaining passengers since February 1.”

Filipina nurse onboard Saudia Airlines Flight 860 have also shown symptoms of the disease. Both are now confined in a separate hospital. “With regards to Saudia Flight 860, we have contacted 115 passengers and they will be subjected to MersCoV testing. Considering the 14-day incubation period, [February 14] will be the last day for contact tracing of the remaining passengers since February 1,” Garin said. “We have, however, put in isolation two of the passengers currently being closely observed. One is considered a ‘patient under investigation’ and another one is considered a ‘Mers-CoV suspect,’” she added. Garin also appealed to the public to pray for the Filipina nurse who is currently pregnant. “As to our index case, let us all include her in our prayers for a speedy recovery. She and her baby deserve utmost respect and understanding. The hospital she is working in Saudi turned out to have had a Mers patient recently. Her plight has opened our eyes to initiate moves on further protecting our health workers abroad,” she said.

the administration cropped up in the aftermath of the killing of 44 Special Action Force commandos on January 25 by the Bangsamoro Islamic Freedom Fighters and the Moro Islamic Liberation Front (MILF), the latter being involved in peace talks with the government. The coup was reportedly being fueled by the Aquino administration’s slow action in dealing with the issue, and in its hesitance to take legal or even punitive actions against the in-

volved members of the MILF. The killing, National Police Officer in Charge Deputy Director General Leonardo Espina earlier admitted, was causing demoralization within the police ranks. Some officials said it was also causing unrest and discontent within the uniformed services, particularly the police, which they said were recipes for a coup. However, Padilla said the coup plot will not work against the administration, partly because of the dedication and professionalism of the Armed Forces of the Philippines (AFP). “We firmly believe all these efforts will fail. First, because of the high degree of dedication and professionalism of our AFP today. Second, majority of our citizens no longer buy these kinds of efforts and easily see through it's real intent which is, that all these are political in nature with an end view for 2016,” he said. “Third, the administration still enjoys a high degree of support,” he added. Padilla said the soldiers have already learned their

lessons from the past efforts to overthrow past administrations, and this is the main reason any recruitment against their ranks will never succeed. “There are a lot of issues then, but which we don’t have now. There is an absence of overwhelming issue that were present during the 80s,” the military spokesman also said. But he said whether it would succeed or not, a coup is a serious and very dangerous matter. “A coup is always supported by a force, it is different from a political coup. We are talking here of the military,” he said. Padilla said the killing of commandos cannot be a reason to overthrow President Aquino, even to destabilize the government. “It’s an operational matter, and what the President did is not illegal, it was a legal operation. It’s the manner by which it was carried out and the President does not go into details. You have the whole country’s problems at the back of your mind, occupying you day to day,” he said.

Economy

A4 Monday, February 16, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

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BOI to start accrediting firms for Inclusive Business scheme

By Catherine N. Pillas

HE Board of Investments (BOI) is now finalizing the mechanisms for the implementation of the Inclusive Business (IB) program, an initiative spearheaded by the agency to encourage businesses to integrate low-income groups into their supply or value chain.

The BOI is now putting flesh to the accreditation procedures for particular sectors that may qualify for it. The IB program promises incentives and priority access to

government services to businesses that will adopt the IB model. The agency said it is now considering Unilever’s P 9.5-billion expansion project as among the first ventures

that could qualify for the program. According to BOI information, Unilever’s expansion of manufacturing operations and acquisition of new technology, approved by the BOI in the latter part of 2014, will entail a 30-percent to 35-percent local production of its manufactured goods. The firm is ramping up its production capacity by 30 percent from the current 100,000 tons from now until 2020. Notably, according to documents, the perceived employment gain from the expansion project, which will take place over a six-year period, is seen at 900 direct employees and 8,450 indirect employees. The BOI noted that Unilever is undertaking a similar project, the Sustainable Living Plan (SLP) project, on its own, which entailed Unilever to implement agribusiness projects in Mindanao in 2013.

For that year, Unilever sourced $20 million worth of agriculture products, mostly meat, sugar and eggs, from local suppliers under the SLP. The BOI, in September, formally announced the accreditation of enterprises for the IB initiative to complement the government’s broader inclusive growth agenda. Three sectors are being targeted by the BOI in the IB initiative, namely, agribusiness, housing and tourism. The initiative aims to involve the low-income segment of society in the supply and value chain of the enterprises’ business operations, leading to improvement of their living standards and work opportunity. The said program is being implemented jointly with the Asian Development Bank (ADB). The government has requested a $250-million

from the ADB to support the IB program, which will be used in designing a framework to create employment among the rural poor. T he investment-promotion agency is moving on to the second phase of the the IB program, which includes developing specific accreditation criteria for the three sectors. Consultants for the project are expected to engage industry associations of the sectors to benchmark on specific requirements. Notably, documents show that there is a move from the BOI and its consultants to undertake pilot accreditation of at least 20 IB projects per sector, after the accreditation scheme is finalized and institutionalized. The BOI is also mulling over the potential incentives for IB projects, as it is already included in the 2014 Investment Priority Plan.

Sobrepeña: Camp John Hay dispute could end in 90 days By Lorenz S. Marasigan

appy and content. This was how businessman Robert John L. Sobrepeña felt when he learned that the arbitral committee of the Philippine Dispute Resolution Center ruled in his favor over a dispute with the Bases Conversion and Development Authority (BCDA) on the Camp John Hay dispute. “I’m in favor of finishing it and getting on with it. I agree and I am happy with the decision of the arbitration court. We feel vindicated by the arbitration tribunal in upholding our position that Camp John Hay Development Corp. does not owe any P3.3-billion back rentals to the BCDA,” he said in an interview on Saturday. “In fact, according to the court, the BCDA owes us P1.42 billion as reimbursement for all our rental payments since 1996.” The court ordered the company to vacate the leased premises and deliver the leased property, including new constructions and permanent improvements introduced during the period of the lease, to the state-run disposition agency. In a nutshell, the arbitral committee decided to terminate the original lease agreement between the government and the Sobrepeña-led firm. The chairman of the company, which operates and manages the recreation center up north, said the government must abide by what the arbitration court has ordered, and pay the sum indicated before taking over the property. “If they will abide by the arbitration order, it could be over by 90 days,” Sobrepeña added. However, the government is not bent on backing out without fighting further.

“There is a strong, separate opinion and this gives the BCDA the opportunity to ask the court to look into this,” BCDA Legal Services Department Officer in Charge Peter Paul Andrew T. Flores said, referring to the split decision of the arbitral committee. The state-run agency, he said, will seek a judicial confirmation from the Regional Trial Court in Baguio City to uphold the first part of the decision, which orders the company to vacate the property and turn over all improvements on the site promptly. “If they will pursue with their appeal, the whole process of returning Camp John Hay to the government will take a little longer. But the decision of the arbitration court cannot be appealed,” Sobrepeña replied, when sought for comment. “Until the court order is released to us, we will remain as the owner of the property.” The BCDA estimates there are 118 enterprises—including restaurants, retail and other services and business-process outsourcing offices—in the property, with 384 hotel rooms in the Forest Lodge. There are also 85 residential structures in the Camp John Hay area. “We assure our buyers, locators and sublessees that their rights to the properties they acquired and are now using in John Hay will continue to be protected and respected,” Sobrepeña said. BCDA President Arnel D. Casanova, however, noted that the tenants’ sublease agreements have been terminated with the principal lease, hence, renters should now negotiate with the state-run agency, instead of the private company. “It has no authority anymore to do business or transact with locators in the area,” he said.

enjoying the ride Local tourists enjoy horseback riding at the Picnic Grove in Tagaytay City, one of the top tourism spots in the country. KEVIN DE LA CRUZ

Mamasapano clash seen affecting country’s image as a ‘fragile state’

he National Competitiveness Council (NCC) fears that the Mamasapano incident could affect the country’s competitiveness and lead to a downgrade in the Fragile States Index. Guillermo Luz, private sector cochairman of the NCC, in a recent interview with the BusinessMirror, said the deadly incident in Maguindanao that led to the deaths of 44 members of the Philippine National Police’s Special Action Force team will affect the country’s image of stability. “For any country to be competitive, there must be peace and rule of law. In this case, this tragic event is a reflection of a deep misunderstanding on many levels..the biggest impact on this would be the Fund for Peace’s Fragile States Index [FPFSI], and we may receive a downgrade,” Luz said in a phone interview. The FPFSI ranks 178 sovereign states on four social indicators, two economic indicators, and six political indicators. Included in the political category indicators are “human rights and rule of law,” as well as “security apparatus,” which include factors related to internal conflict, rebel activity, militancy, riots and protests, military coups and fatalities from conflict. Luz, however, said minimal impact is seen on the other reports being tracked by the NCC. These include the World Economic Forum’s (WEF) Global Competitiveness Report and the World Bank—International Finance Corp.’s (WB-IFC) Ease of Doing Business Report. The NCC tracks 12 reports/indices that rank the competitiveness of countries based on dif-

ferent aspects. The 10 other reports are: Transparency International’s Corruption Index, Heritage Foundation’s Economic Freedom Index, WEF’s Global Information Technology Report, WEF’s Travel and Tourism Report, the WEF’s Global Enabling Trade Index,International Institute for Management Development’s World Competitiveness Report, World Intellectual Property Organization’s Global Innovation Index, World Bank’s Logistics Performance Index, FP’s Fragile States Index and WEF’s Global Gender Gap Report. The Philippines, in FP’s 2014 FSI, was the 52nd most fragile state, declining by seven spots from the 59th spot in 2013. The index designates a zero score as a perfect score, indicating a stable government. The Philippines garnered a score of 85.1. Luz said to counter this possible scenario of a downgrade, both the private and the public sectors should cooperate on three problems that may dampen the international community’s view of the country’s peace and order situation. First,the existence of a notorious international terrorist in the country, Zulkifli bin Hir, alias Marwan in the country, is in itself a problem, he said. Second, the public should be enlightened of the different forces in Mindanao and clarify the relation, if any, between them and the fugitive in question. Last, for the public’s knowledge, the issue of the chain of command between the country’s armed forces and the national police should also be clarified as the confusing bureaucracy may be a negative to the international community.

Catherine N. Pillas

SEC warns public against dealing with Emgoldex By VG Cabuag

he Securities and Exchange Commission (SEC) has warned the public against dealing with Emgoldex Philippines, a company that promises huge returns on an investment of just P1,000. The SEC released an advisory saying Emgoldex is not a registered corporation or partnership in the agency. “Likewise, such entity is not authorized to solicit investments from the public, as it did not secure prior registration and/or license or permit to solicit investments from the commission,” it said. According to the SEC, Emgoldex has a program called “Pinoystyle Patak Patak,” in which an investment of P1,000 will yield P5,000 to P10,000, while a placement of P35,000 will yield between P180,000 and P360,000 in payout. “The public is hereby advised to exercise self-restraint from investing their money into such high-yield riskinvestment scheme and to take the necessary precautions in dealing with [Emgoldex],” the SEC said. The said scheme is being promoted in social-media sites like Facebook. A similar web site on Emgoldex showed that the company specializes in “buying and selling of investment gold bars of different value. Our investment gold is procured and provided only by the top producers internationally.” “The company not only sells investment gold bars, but also provides a guarantee of buyback of gold from its customers with the most profitable prices. The customers of the company can use the service of certified depositories for gold and diamonds,” it said.

‘Oscars’ for Philippine retailing industry set on Feb. 25

he much-awaited results of the 18th Outstanding Filipino Retailers and Shopping Centers of the Year (OFR- SCY) search will finally be unveiled on February 25 during the annual awards’ gala night at the Crowne Plaza Manila Galleria in Ortigas Center. The (OFR-SCY), organized annually by the Philippine Retailers Association (PRA)—the recognized national organization of retailers and suppliers in the country—in partnership with the Department of Trade Industry, is considered as the “Oscars of the Philippine Retail Industry.” The OFR-SCY Awards categories include the Full-Line Department Store/Hypermart, Food Retailer, Fashion, Services, Home Improvement Center, Most Promising Retailer, Regional Retailer, Specialty Retailer, Global Retailer of the Year, Shopping Center of the Year, and Regional Shopping Center of the Year. The retail industry’s search of the crop were chosen by a board of judges, composed of key players in the business industry, that include Trade Secretary Gregory L. Domingo, PRA Chairman Frederick Go, president of Robinsons Recreation Corp.; and PRA President Lorenzo “Enchong” C. Formoso, COO of Duty Free Philippines. Around 51 finalists will vie for the top honors of the OFR-SCY. They include Robinsons Department Store, SM Hypermart, SM Supermarket, Savemore, National Book Store, R.O.X, Mandaue Foam, Wilcon Depot, Bench, Folded & Hung, Human, Regatta, Onesimus, Karimadon, Mint, Artwork, Sanuk, Bratpack, Fino Leatherware, Bambu, Mesa, Bench Fix Salon, Great Image, Handyman, Pet Express, The Travel Club, Halo Mobile Clothing, Silverworks, Saver’s Appliance Depot, Laguna Garden Café,

formoso

Lemon Grass, Lighthouse Cooperative, Cagayan Appliance Center, Forever 21, Topman, Fitflops, Lacoste Footwear, Nike Women, True Value, McDonald’s, Wendy’s and Krispy Kreme for OFR. SM Megamall, SM Clark, Newport Mall, Robinsons Magnolia, Eastwood Mall, Lucky Chinatown, Robinsons Palawan, SM Muntinlupa and Pacific Mall Legaspi for the SCY. One of the highlights of the 18th edition of the OFR and SCY Awards is the presentation of the PRA President’s Award to property, retail and liquor magnate Dr. Andrew Tan. Tan, chairman of conglomerate Alliance Global Group Inc., will be recognized as the “Pillar of MixedUse Developments.” Formoso stressed that the PRA Board unanimously picked Tan as this year’s recipient of the President’s Award for expanding the realm of retail industry with his signature “live-work-play” concept in the development of fully integrated havens, like Eastwood City, in Libis, Quezon City,

and the McKinley Hill in Taguig City. “Dr. Tan gave retailers premium sites for expansion with ready markets coming from the residential and office components of his integrated developments. His invaluable contribution to the Philippine retail industry truly deserves PRA’s highest recognition,” Formoso emphasized. Previous recipients of the President’s Award include Samie Lim (Pioneering Pillar of Franchising); Henry Sy (Father of Philippine Retailing); Fernando Zobel de Ayala (Pillar of Philippine Retail Development); Jorge Araneta (Pioneer of Philippine Retail Entertainment); Socorro Ramos (Matriarch of Philippine Retailing); John Gokongwei Jr. (Champion of Retail Entrepreneurship); Amb. Bienvenido Tantoco Sr. (Father of Luxury Retailing); Mariano Que (Father of Health and Wellness Retailing); and Teresita Sy-Coson (Philippine Retailing’s Woman Visionary Leader). Another highlight of the gala night is the conferment of the “Global Retailer of the Year” award to Golden ABC Inc., owner of apparel brand Penshoppe, besting other homegrown retailers for the honor. Golden ABC CEO Bernie H. Liu will receive the award. Golden ABC Inc. was cited for successfully expanding its business internationally and established its brand on a global scale. PRA Secretary-General Evelyn Balmeo-Salire sees the awards as a yardstick and a benchmark for competitiveness vis-à-vis their peers in the retailing industry. “Aside from enhancing the value of their brands, the awards also seeks to establish the winning retailers as best in their class because we have a very rigorous set of criteria and selection process,” Salire stressed.

Tourism

A6 Monday, February 16, 2015 • Editor: Gerard Ramos

CASINO MOGU 1

MELCO Crown Entertainment (MCE) finally launches City of Dreams (COD), an integrated casino resort that is made for entertainment, gaming, accomodations, dining and shopping. ALYSA SALEN

COD became a reality, during the news conference held to mark the official grand launch of the integrated gaming and entertainment resort, set to become the “must experience”destination in Manila. Left is Lawrence Ho, cochairman and CEO, MCE Ltd; and James Packer, cochairman, MCE Limited. During the media presentation, Ho commented, “Today it is my great pleasure to deliver on our promise to bring the highly successful COD brand experience to the Philippines. Strategically at the gateway to Manila’s Entertainment City, the over $1-billion COD Manila is now ready to deliver on its stated aim to become the premier leisure and entertaiment destination in the Philippines and within the region.” NONIE REYES

B S A | Special to the BM

ITH a turn of the keys, a golden “Fortune Egg” unleashed a cloud of smoke while mechanical butterflies cascaded, signaling the grand opening of the $1.3-billion (P58 billion) City of Dreams Manila (COD Manila). Casino moguls Lawrence Ho and James Packer, along with Henry Sy Jr., chairman of SM Prime Holdings, led the event on February 2, and were joined by Cristino Naguiat, chairman of the Philippine Amusement and Gaming Corp. (Pagcor) and Ho’s wife, Sharen. A grand fireworks display immediately ensued to celebrate the country’s newest tourism destination anchored on an integrated casino resort, as well as a gala dinner attended by Metro Manila’s business leaders, government officials and society movers. Earlier, a musical event topbilled by international artists Ne-Yo and Kelly Rowland, along with favorite local artists like Zsa Zsa Padilla and Gary Valenciano, wowed the crowd in an open-air concert,

billed as “Concert of Dreams.” In a news briefing, Ho, cochairman of Macau gaming and resort developer Melco Crown Entertainment Ltd. (MCE), said, “We choose the greatest locations in Asia to build integrated resorts. We’ve been very selective and other than Macau, Manila is the first place that we have decided to go into. Our philosophy is very simple—we want to build things we’re proud of.” COD Manila was developed by MCE’s local unit, listed Melco Crown (Philippines) Resorts Corp. (MCP), in partnership with the SM Group’s Belle Corp. The casino complex has approximately 380 gaming tables, 1,700 slot machines and 1,700 electronic table games spread out over an aggregated gaming space, which in-

LILIA Econo PARAÑAQUE City Mayor Edwin Olivarez and wife Janet

cludes VIP and mass-market gaming facilities. During its soft opening last December, two hotels—the 321-room Nobu and 365-room Hyatt—likewise, began welcoming guests.

Unfazed by beijing crackdown

MELCO officials appeared unfazed with the crackdown on corruption in China, as well as the current ban on travel to the Philippines, which many analysts said could impact on the country’s visitor arrivals from mainland China and gaming revenues. (See “Chinese travel ban impacts visitor arrivals to the Philippines”, BusinessMirror, January 14, 2015.)

I MC said pin wit Kor gap H ism trac we mor D Jr. nila at p in t help cou “As [Pag

m&Entertainment BusinessMirror

tourism@businessmirror.com.ph • Monday, February 16, 2015 A7

ULS DREAM BIG FOR MANILA 2

MCE CEO Lawrence Ho (fourth from left), with (from left) Melco Crown Philippines Chairman Clarence Chung Yuk Man, SM Prime Holdings Chairman Henry Sy Jr., Melco Crown CEO Wife Sharen Ho, Melco Crown Co-Chairman James Parker and Philippine Amusement and Gaming Corp. (Pagcor) Chairman and CEO Cristino Naguiat, Jr. lead the turning of ceremonial keys to open the 'Fortune Egg' of City of Dreams Manila and cascade a ‘Dream Cloud” of mechanical butterflies, officially marking the launch of the integrated resort. ALYSA SALEN

JAMES PACKER, chairman of Melco Crown Entertainment Ltd. is flanked by Armin Raquel Santos, executive vice president of Belle Corp., and his wife Ana.

AMBASSADOR Jose E. B. Antonio, chairman and CEO of Century Properties with wife Hilda

A DE LIMA, Director-General, Philippine omic Zone Authority

In a separate news conference, CP Chairman Clarence Chung d visitor arrivals in the Philipnes are now “multinational,” th tourists coming from South rea, the Middle East, Japan, Sinpore and the US. He cited the Department of Tourm (DOT), which is working to atct 10 million visitors this year, “so believe we will attract more and re [tourists].” DOT Secretary Ramon Jimenez hailed the opening of COD Maa, describing it “in a scale quite par with the best of such facilities the world,” adding that it would p improve visitor arrivals in the untry. He told BusinessMirror: with other developments in the gcor] Entertainment City, the

CHARISSE CHUIDIAN, vice president for communications of COD Manila, and Arthur Lopez, hospitality consultant

FELIX ANG, president of CATS Motors and wife Grace

WILLY OCIER, vice chairman of Belle Corp. and wife Geraldine

City of Dreams brings the quality and variety of entertainment to a new high…. We expect that City of Dreams and other similar developments will help boost tourist arrivals from source markets in Asia and the West.” During its soft opening last December, the casino resort recorded some 60,000 in foot traffic, Chung said. At present, there are about 15,000 daily visitors to the complex, which now includes the newly opened 260-room Crown Towers, and premier nightclubs Pangea and Chaos. The muchawaited DreamPlay, dubbed the world’s first DreamWorks-inspired education-based interactive play zone that is expected to drive more

families to the resort, is scheduled to open by the end of March. Chung noted that COD Manila visitors are still primarily local players, “already a good gaming market,” but it also intends to use its vast marketing network to attract gamers from overseas. Macau gaming revenues fell sharply last year as high rollers from mainland China stayed home due to the crackdown by their government on corruption. Mainland Chinese account for the largest bulk of gamers in Macau, where Melco Crown has its flagship COD. Pagcor has forecast gaming revenues in the Philippines to reach about $6 billion (P270 billion) by

AMBASSADOR Felipe Mabilangan and wife Ada

2017, overtaking even Singapore, with the opening of more gaming casinos. But the agency recently reported revenues of some P20 billion in the fi rst half of 2014, down 5.2 percent for the same period in 2013.

Marty, Bob And Leo Want in

ON a personal note, MCE Co-chairman James Packer said that, after he had spent a weekend in the upscale Amanpulo resort in Palawan, “I think it’s true: it’s more fun in the Philippines.” He intimated that DOT’s “more fun” ads playing all over the

FORMER Makati Rep. Teddyboy Locsin and wife Louie

WASHINGTON Sycip, SGV founder and Belle Corp. independent director

IÑIGO ZOBEL, chairman of Top Frontier

world would help drive the tourists to come to the country, and benefit COD Manila. “The Philippines is a dynamic and fast-growing market and City of Dreams Manila has been specifically developed to cater both to domestic demand and destination visitors across Asia and internationally.” Packer is also co-founder of RatPac Entertainment with film director Brett Ratner, which produced the 30-second TV ad showing director Martin Scorsese welcoming Hollywood actors Robert De Niro and Leonardo

INTERNATIONAL artist Ne-Yo performs and celebrates with the Filipinos as Melco Crown Entertainment launches the COD Manila on Monday. PHOTO BY ALYSA SALEN

JERRY TIU, president of Tagaytay Highlands and wife Lianne

DiCaprio to Manila (http:// bit.ly/1DVJ28x). Vanity Fair reported the total cost of the series of COD Manila ads at $70 million, with both actors snagging a cool $13 million each for their work. Also rumored to be making an appearance in the ads is actor Brad Pitt. De Niro is a coinvestor of the Nobu chain of hotels and restaurants. COD Manila sits on a 6.2-hectare property, the second casino complex to rise in the 100-ha Entertainment City. It was preceded by Solaire Resort, owned by ports king Enrique Razon,

KEVIN SIM, COD Manila’s COO, and his wife Dwina

which opened in March 2013. Ho is the son of Macau's acclaimed casino kingpin Stanley Ho, who in 2000 tried to open a floating casino in Manila but failed to get the necessary licenses and permits, owing to loud opposition from the Catholic Church and a congressional investigation into his alleged links with organized crime. “It’s a long road ahead,” the younger Ho said, despite noting COD Manila’s initial success during its soft opening. “We plan to be in this market for a very, very long time.”

TheElderly A8

BusinessMirror

Monday, February 16, 2015 • Editor: Efleda P. Campos

news@businessmirror.com.ph

Kanlungan ni Maria conducts pain-healing mission in Bohol

By Oliver Samson | Correspondent

PAIN-healing mission by a home for the aged in Antipolo conducted free therapy for senior citizens in Bohol on February 11, coinciding with the 23rd World Day for the Sick.

Harnessing magnesium’s natural and safe curative power, the Kanlungan ni Maria pain-healing mission team provided 150 seniors with therapy, Victoria Baterina-Solis, Kanlungan ni Maria special project director, told the BusinessMirror. The recipients, who came from the different communities in Bohol, have complained of arthritis, painful shoulders, stiff fingers, back pain, muscle cramps, psoriasis, gout, and other health conditions, she said. Candida Turalba, 69, who could not fold her fingers in the last five months because they were painful, experienced relief. “My fingers have felt better after the therapy,” she said in Filipino. “I will continue the therapy at home to completely heal.” Another recipient, whose feet

were painful in the last three years, has reported relief. “I felt better in my feet,” Hospicio Almenye, 70, said in Filipino. He was amazed saying, “There is nothing like this [magnesium liquid] in drug stores.” Most of the pains in seniors are related to magnesium deficiency in their diet, said Mary Jean Netario Cruz, Kanlungan ni Maria wellness director. “The deficiency due to poor diet,” she continued, “is exacerbated by an unhealthy lifestyle, like excessive caffeine, alcohol, chronic stress, fatigue, and by some pharmaceutical drugs. They deplete the stored magnesium in the body.” When the pain sets in, Netario Cruz said, magnesium relieves it by relaxing the muscles and preventing

Revamped bus service for old, disabled in Florida, USA has rough start

ALM Beach County’s revamped bus service for the elderly and disabled got off to a bumpy start early this month in Florida, USA. Late pickups, longer than normal rides and drivers getting lost were among the steady stream of complaints from riders in the first seven days after the county rolled out its new operating model of Palm Tran Connection on February 1. County officials said they have resolved most issues, many of which they said were to be expected in the first week of a major transition to a new model—and pledged continuing improvement. But that didn’t relieve the anxiety of 22-year-old Robert Yadoff, an autistic Lake Worth man who complained it took him five hours for a new Palm Tran Connection van to take him to his part-time job in Boca Raton on February 5. “He came home crying,” said his mother, Laurie Yadoff. “I would be crying. That’s a long time to sit and be driven around on the bus. He could have gone to Disney World and back.” Like others who rely on Palm Tran Connection, Yadoff said she had high hopes for the new service after chronic customer complaints about the system under Metro Mobility Management Group. After the county reached a settlement with Metro to end its contract early, the county signed contracts with three companies totaling $189.9 million and it spent $17.2 million on 232 new vehicles. The county also took over dispatch services for the first time. County officials and representatives from the new companies—MV Transportation, First Transit and Maruti Fleet and Management—had reached out to longtime Palm Tran Connection users in recent months to offer their assurances about the new operating model. “They told me, ‘You’re going to love it! We’re going to have new

companies, with great buses and new cameras,’” Laurie Yadoff said. “Sure enough, he calls me crying because he was on the bus five hours. Five hours? Can you picture yourself riding around for five hours? What could possibly be going on?” Officials blamed the problems on a combination of new employees unfamiliar with the county and technology issues—drivers were not properly trained on how to use a new radio system. “It was a little bit of everything,” said Assistant County Administrator Shannon LaRocque said. “We expected we were going to have a lot of bumps. It could have been a lot worse.” Palm Tran Connection made more than 16,000 trips last week, with daily on-time performance rates ranging from 63 percent on February 2 to 75 percent on February 6. The county’s goal is 95 percent. That on-time rate improved on February 9—the eighth day of the new system—to more than 93 percent. The contracts allow the county to fine the companies $2,500 a month for failing to meet performance measures. LaRocque said the county will waive the poor numbers from last week because it was the new system’s first week. County Mayor Shelley Vana, who led the charge for the new service after being a vocal critic of the old model, spent time at Palm Tran Connection headquarters on February 9 with County Administrator Bob Weisman. Vana said she believes the service will continue to improve. “I’m usually not the nicest person when it comes to Palm Tran Connection. But when people were calling to complain, I said, ‘This is the first week. When something starts up like that with so many moving parts, you’re going to encounter problems,’” she said. “This week they seem like they are doing better, a lot better. But I’m not taking my eye off it yet. I want to make sure we are doing it right. [Connection riders] are people who are really old and vulnerable. You don’t really want a long learning curve.” Tribune Content Agency Llc.

KANLUNGAN ni Maria Foundation Wellness Director Mary Jean Netario Cruz leads the medical mission featuring magnesium therapy at a beach in Panglao, Bohol, on February 11, while Fr. Fernando “Dodong” Po, mission host, gestures from his wheelchair. OLIVER SAMSON

spasm and nerve twitching. Conventional pain killers only further deplete the body’s magnesium, said Netario Cruz, a member of the American Association of Drugless Practitioners. Headache, fatigue, insomnia and body pains are the main indicators of the mineral’s deficiency and excess calcium deposits in the

body, she added. Magnesium can be restored in the body in its liquid state transdermally or orally, said Netario Cruz, a certified wellbeing coach. In the United States, Dr. Carolyn Dean, a medical and naturopath doctor, even treats executives and athletes of anxiety and panic attack with magnesium, instead

of sedatives, with success. The Kanlungan ni Maria painhealing mission team also gave 150 free 100 mL bottles of magnesium to the seniors in Bohol, BaterinaSolis said. It was the first time the team crossed the sea to conduct a painhealing mission. Fr. Dari Dioquino, who is Kanlungan ni Maria priest-in-charge, Netario Cruz, Baterina-Solis, Marilyn I. Domingo, Shirley U. Griba, Maria Kristen D. Concepcion, Karima Dimzon, Grace P. Vergara, Mercy Baterina, lawyer Pope Solis, and Philip Nicholas Cruz composed the team that visited Bohol. Kanlungan ni Maria has also conducted pain-healing missions in the towns of Jalajala, Pililia, Cainta, Malaya and Tanay, in Rizal province, benefiting no less than 500 indigent people, Baterina-Solis said. Fr. Fernando “Dodong” Po, a retired priest, hosted Kanlungan ni Maria’s seventh pain-healing mission at a beach in Panglao, a town in Bohol visited by local and foreign tourists for its white sand and clear blue beach water. Po, who built over 100 core houses for the quake survivors in the province, also hosted the team’s four-day stay in Bohol.

Iloilo to pamper senior citizens this love month

LOILO CITY—More than 250 senior citizens of Iloilo will be treated this month through a newly crafted program of the Provincial Social Welfare and Development Office (PSWDO) dubbed as ART, or Asikaso, Respeto sa mga Tigulang (Care and Respect for the Elderly). Dr. Neneth Pador, PSWDO chief, said the program, tentatively scheduled on February 27 at the Provincial Capitol lobby, is sponsored by the Office of the Gov. under Gov. Arthur Defensor Sr. The whole-day activity will treat senior citizens with free haircut, massage, lecture on illnesses commonly suffered by the elderly like Alzheimer’s, Parkinson’s, heart diseases and diabetes, among others. Aside from this, there are also medical and dental examinations in coordination with the Provincial Capitol Clinic. Pador said the governor has committed to fund the meals of the senior citizens. “Each town will be bringing six senior citizens including the Office of the Senior Citizen head of each municipality,” Pador said. PNA

Loida Nicolas Lewis: An advocate of all things correct and Filipino By Rizal Raoul Reyes Correspondent

USINESS leader and philanthropist Loida Nicolas-Lewis is among the most respected Filipina-Americans in the US and has been in the forefront of promoting Filipino interests in her second homeland and the Philippines, as well. “My passion is always for the Fi lipino,” said the 72-year-old Lewis in an interview at her Makati City residence. Lewis is glad that the Philippines is now making raves in the global community such as getting good credit ratings from Moody’s, Fitch and Standard & Poor’s. A native of Sorsogon, she felt sad when the country was branded as the sick man of Asia by foreigners. Although there have been a lot of challenges, she said the current administration is doing a good job in managing the economy. “The Filipino always got the bad rap until President P-Noy got elected,” Lewis said. Last year Lewis was in the forefront of staging the opera version of Jose Rizal’s Noli Me Tangere, which she admitted was a challenge to stage. “This is the last time I will promote a play. It’s very difficult,” she jested. “The reason I helped in promoting Noli Me Tangere was to prove the Filipinos are world-class artists. I also wanted Filipinos to enhance their love for the art, literature and country,” she said. Lewis was once one of the top students in the College of Law at the University of the Philippines in Diliman. Aside from boosting the country’s image, Lewis is also active in promoting the Philippines as a good investment site. But for the country to be on the radar screen of investors, Lewis said the economic provisions of the Constitution must be changed

Loida Nicolas-Lewis wants Filipinos to vote wisely in choosing their leaders.

to attract and motivate investors to come to the Philippines. “If you’re thinking of real investments, an investor will come in but will not get a minority share in the business,” she said. She relates this situation to her experience when she opened The Lewis College named after her late husband Reginald Lewis in early 2000. Being an American citizen because of her marriage, she was not allowed to run the school. Instead, her relatives were tasked to manage the school. “I want to show my appreciation to Sen. Franklin Drilon who was then the Senate president and former Speaker Jose de Venecia Jr. for their help in my acquiring a dual

robert de la cruz

citizenship,” she said. Establishing a federal system of government is also on top of Lewis’s agenda for good governance in the country so the regions will get equal representation. “Let’s face it. Bicolanos will vote a Bicolano for senator and Ilocanos will vote of one of their own in the Senate. The Philippines should adopt a federal system just like the US . This will allow us to vote the best of the best in the region because we know who’s not deserving to be voted,” she said. “It’s also high time we stop voting for actors in the national level,” she said. Lewis is also active in advocating for granting a Temporary Protected

Status (TPS) to Filipinos in the US. TPS would allow Filipinos without permanent resident status to continue to stay in the US and provide working authorization temporarily until the person’s TPS status ends. Lewis is also an active supporter of the Asian American Legal Defense and Education Fund, Asian Pacific American Legal Center, Asian Pacific Islander Coalition on HIV/AIDS, Asian Pacific American Film, Asian American Arts Alliance, Asian American Federation of New York, Asian American Foundation, Diversity Theater and Ma-Yi Theater. Just like her, Lewis’s daughters also excelled in their studies, both graduating cum laude in their AB studies in Harvard University. Leslie is an actor and Christina is a freelance writer after working for five years as a columnist for the Wall Street Journal. She has three grandchildren, Christian, Savilla, Calvin and two sons-inlaw, Gavin Sword and Dan Halpern. An avowed supporter of the Democrats, Lewis is gung ho on the prospect of former Secretary of State Hilary Clinton’s running for presidency in 2016. “I am all out for the candidacy of Mrs. Clinton,” she said. “It’s time for the US to make history again by electing a woman as president. Mrs. Clinton is very capable,” she said. She is also passionate on the Philippines versus the China issue. She said China is a rogue state and does not follow the rule of law. “Every time we talk to them, they never answer us,” she said. Despite being named as one of the richest women in the US, Lewis remains grounded and says the label does not faze her. “It is not important. We are all equal in the eyes of God. What is important is what we do as stewards and manage what we have to do. I think that’s the most important,” she said.

SSS Iloilo gears for another e-mobile service program

LOILO CITY—The Social Security System (SSS) will hold another express mobile service program for the first quarter of 2015. SSS Iloilo Central Branch Office Manager Emilia B. Solinap said they have already coordinated with the local government of Passi City for the proposed mobile service program slated second week of March. On February 20 they will also meet with local officials of the municipality of Sara to discuss the con-

duct of the same activity initially slated after Passi City. Solinap said the e-mobile service usually runs up to three days. It is an initiative of the agency where they bring their services in areas that are far from the city. She said given priority is the Annual Confirmation of Pensioners for senior citizens. They also cater to members who would like to secure their identification card, process their membership and claims. PNA

Lunch with grandma A grandmother in Baguio City eats lunch with two grandchildren at the Baguio City People’s Park. After the break, she escorts the two children back to school. MAU VICTA

The Regions BusinessMirror

news@businessmirror.com.ph

‘Don’t give up on Moros’ dream of peace’

By Manuel T. Cayon | Mindanao Bureau Chief

AVAO CITY—Gov. Mujiv Hataman of the Autonomous Region in Muslim Mindanao (ARMM) appealed anew to lawmakers not to give up on the dream of the Moro population to achieve peace. Hataman recently defended the ARMM position supporting the peace negotiation as some senators began expressing their disgust on continuing talks with the Moro Islamic Liberation Front (MILF) following deadly encounter in Mamasapano, Maguindanao, on January 25.

“The incident should not discourage lawmakers from supporting the passage of the Bangsamoro basic law [BBL] and the eventual establishment of the Bangsamoro government,” he said in an ARMM statement released on Sunday. The peace process, he said,

“provides the most viable option to end decades of conflict, displacement and underdevelopment in parts of Mindanao.” He cited the confidence given by local businessmen due to the peace process that has reached the level of the creation of a transition body toward the establishment of a new Bangsamoro political body, and the commitment of the MILF to begin its phased decommissioning of troops and turnover of their respective weapons. Hataman said more than P3 billion worth of investments were poured into ARMM last year “as one of the dividends of peace.” “ARMM’s board of investment is also set to approve close to a billion worth of additional investments by end of the month,” he added. He said, “The promise of a longterm peace has encouraged investors to put their money in a region, which

they have long disregarded due to its volatile socioeconomic climate”. Hataman said the clash in Mamasapano “came at a time when people in the ARMM have high hopes for the passage of the BBL and the enforcement of a political solution that would address the legitimate grievances of the Moro people and usher in needed development.” He said, “Lawmakers must not allow the incident to undermine the years of rigorous peace negotiations that both the government and MILF worked hard on.” Hataman said the bungled police operation in Barangay Tukanalipao in Mamasapano, Maguindanao, on January 25 came as a surprise and was “shocking and painful.” “But it is also equally shocking and painful to hear some sectors call for an all-out war in Mindanao in response,” he said.

Monday, February 16, 2015

Compostela Valley screens applications for scholarship

AVAO CITY—The Compostela Valley provincial government began screening applications for its scholarship, with 4,724 applications filed at its office for the next school year. Of this number, the provincial government selected 440 hopefuls to pursue tertiary education under the Compostela Valley Scholarship Program (CVSP) for 2015. Applicants came from graduating high-school students and outof-school youths from the different municipalities of the province. The first screening was done via a panel interview conducted at the Provincial Capitol on February 10 to 13 last year. Of the 440 applicants, only 402 students would be selected in a final round of interview, with qualified graduating students to be informed on their graduation day.

Selected scholars taking up baccalaureate courses would receive P10,000 per semester, while students taking up technical and vocational education trainings would receive P5,000 to P10,000 per semester, depending on the length of training hours. Students who would enroll in center-based trainings would receive a P500 monthly stipend, including free dormitory accommodation, tuition and miscellaneous fees. The CVSP aims to provide tertiary education to poor and deserving students and to increase the available labor needed by industries in the province. As of the current school year, the CVSP has a total of 542 baccalaureate and technical and vocational scholars studying in different schools and colleges in Compostela Valley and Davao del Norte. Manuel T. Cayon

2nd Aklan Forum on Asean Integration set on Feb. 17

Tweddell

eading advocates of Asean economic integration are slated to address the second Aklan Forum on Asean Integration on February 17 at the Aklan Training Center in Kalibo, Aklan. This was announced by lawyer

Allen Salas Quimpo, president of the Northwestern Visayan Colleges and head convener of the Aklan Forum on Asean Integration. Quimpo, a three-term congressman of the lone district of Aklan, said the event will be attended by prominent resource persons and speakers. With “Building the Aklan Road Map to Asean Integration” as its main theme, the whole-day meet will be participated in by leading representatives of great institutions from Aklan and neighboring areas of Panay. Among the speakers and resource persons are former Ambassador to Asean Dr. Wilfredo V. Villacorta, who was also a permanent representative of the Philippines until his retirement in 2012. Villacorta is expected to speak on Asean Economic Integration 2015: Its Opportunities and Challenges. Australian Ambassador to the Philippines Bill Tweddell will speak on Asean and Australia. Other speakers, which include Quimpo, are Governor Florencio T. Miraflores, chairman, Akan Council for Asean Economic In-

tegration, while Aklan Rep. Teodorico T. Haresco Jr., will focus on the Impact of Asean Economic Integration in relation to the 2015 National Budget, as keynote speakers. Asean Economic Community (AEC) update will be given by Engr. Diosdado P. Cadena Jr., provincial director of the Department of Trade and Industry. Engr. Roger Esto, professorial lecturer, graduate school of NVC, will serve as moderator. The Philippines is one of the founding members of the Asean. In 2017 the country will be the chair of the Asean and will host the historic celebration of the 50th anniversary of the Asean. According to study conducted by the International Labor Organization and the Asian Development Bank, the trade integration could expand Philippine gross domestic product by 7.5 percent by 2025, compared to a baseline scenario without the integration. The study also projected a net gain of 3.1 million more jobs from 2015 to 2025.

CA: Govt still can’t take over Naia 3 Continued from A1

The omnibus order mandated that the said amount be placed in escrow, as well as imposed several conditions before the money could be released to the petitioner. The CA said the lower court’s ruling allowing the government to exercise full rights of ownership over the Terminal 3 facilities upon payment of just compensation in an escrow account is void for lack of basis under the law and is not supported by any jurisprudence. In denying the motion for reconsideration, the CA said the government and the two Japanese firms failed to raise new arguments that would warrant the reversal of its decision. “A considered scrutiny of the arguments set forth in the respective motions for reconsideration filed by respondent Republic of the Philippines and intervenorsrespondents Takenaka Corp. and Asahikosan Corp. directed against our October 20, 2014, decision, as well as the separate comments thereto by petitioner Piatco, elicits the finding that there are no new grounds or bases sufficient to compel modification or reversal of the said challenged decision,” the CA ruled. Concurring with the ruling were Associate Justices Danto Bueser and Melchor Sadang. The CA earlier pointed out that the amount of just compensation is still the subject of appeal before the Supreme Court (SC), thus, it was wrong for the RTC in Pasay City to allow the government to exercise full ownership of the

airport facilities by mere deposit of just compensation to an escrow account. Among the conditions imposed by the RTC in Pasay are Piatco must submit a warranty that the structures and facilities of the Naia 3 are free from all liens and encumbrances; Piatco must submit an undertaking that it is assuming sole responsibility for any claims from third persons arising from or relating to the design or construction of any structure or facility of the Naia 3 structures, if any; and Piatco must submit a duly executed deed transferring the title of the Naia 3 structures and facilities to the government, without prejudice to the amount which will finally be awarded to it by the appellate court. But the CA said these violate the law and SC rulings on expropriation proceedings. It pointed out that the SC has previously ruled that any delay in the payment of just compensation is tantamount to a deprivation of one’s property. In the case of the Naia 3, the CA pointed out the issue of ownership over the Terminal 3 facilities has long been established by the SC in several cases, where it ruled that Piatco is the owner of the Terminal 3 facilities. The CA added that the RTC in Pasay, itself, recognized such fact in its omnibus order when it directed the govenrment to pay only Piatco in its May 23, 2011, decision. “Besides, we agree with Piatco that deposit of just compensation in an escrow account does not constitute ‘payment’ that would extinguish an obligation as contemplated in

the Civil Code and other relevant laws,” the CA ruled. Furthermore, the CA said the conditions imposed by the RTC in Pasay makes it legally impossible for Piatco to get the just compensation. It cited, for instance, the thrid condition requiring Piatco to submit a deed transferring title of the Terminal 3 facilities to the government without prejudice to the final amounts which will finally be awarded to it by the CA. But the CA said the ownership may only transfer to the government and subsequent registration of the property may be made when the decision in the expropriation becomes final and executory pursuant to the implementing rules and regulations of Republic Act 8974, the law that governs rightof-way acquisition for nationa government projects. “Thus, requiring Piatco to execute a deed when the case is actually an expropriation proceeding where there is forced taking of property for public use, is altogether inconsitent with the nature thereof,” the CA said. The CA also held that the claim for compensation of Takenaka and Asahikosan, in the amount of $85.7 million pursuant to the orders of a London court, does not warrant the deposit to an escrow account of the compensation intended for Piatco. The CA said the claim of Takenaka and Asahikosan is still premature and the London court decision is not yet binding as the same is currently pending before the SC.

MAJOR TOURIST ATTRACTION Taal Volcano is clearly visible from Picnic Grove in Tagaytay City. The active volcano is one of the area’s major tourist attractions. KEVIN DE LA CRUZ

Cebu resident tested negative for MERS-CoV

ealth authorities have allowed a person under investigation (PUI) for possible Middle East Respiratory SyndromeCorona Virus (MERS-CoV) infection to stay at home after she tested negative for the deadly viral disease. But the regional office of the Department of Health (DOH) said authorities have yet to locate an Italian tourist who is also considered a PUI. MERS-CoV, a viral disease discovered in 2012, has entered the country this year via a Filipina nurse from Saudi Arabia. The PUI from Cebu City was among those in the plane with the nurse who tested positive for MERSCoV upon arriving home. DOH 7 Director Jaime Bernadas said the results on the Cebuana came out on Friday after samples were obtained from her the night before. Dr. Dino Caing, Regional Epidemiology and Surveillance Unit (Resu) chief, said the woman did not display primary symptoms of MERS-CoV such as fever, cough and pneumonia, but they would continue observing her. “She will still be monitored and will be subject for follow up even if asymptomatic,” Caing said. As this developed, health authorities have sought the help of the Bureau of Immigration in checking if the Italian tourist, a fellow airplane passenger of the Filipino nurse, has left the country. PNA

2 alleged shabu labs raided in Masbate City

ombined operatives of law-enforcement groups arrested several persons, including a female provincial board member and a village chief, in separate raids at suspected shabu laboratories in two villages in this city on Saturday morning. Arrested in the raid at the residential compound of former Mayor Bernardito “Bing” Abapo of Milagros, Masbate, in Sitio Cagba, Barangay Tugbo, were his son Bong and daughter Lovely, Second District board member, Masbate. Other members of the raiding team also simultaneously swooped down at the Secret Garden Resort in Barangay Nursery, this city, which is owned by Cherryboy Abapo, son of former Mayor Cherry Abapo of San Fernando, Masbate. The raiding team was composed of members of the Philippine National Police Anti-Illegal Drug Special Operation Task Force (AIDSOTF), Philippine Drug Enforcement Agency-Bicol, Regional Intelligence DivisionPolice Regional Office 5, 5th Regional Public Safety Battalion, Masbate Provincial Public Safety Company and Masbate City Police Office. PNP-AIDSOTF Spokesman

Senior Supt. Roque Merdegia Jr. said the government operatives made two separate raids in the two target places where there were suspected materials used in making shabu. Seized during the raid were substantial volume of Controlled Precursors and Essential Chemical (CPEC) used in the manufacture of dangerous drugs, caliber .40, caliber .45 and one caliber 22 Magnum with 10 live ammunition, the report said. The suspects are now facing charges for violation the Comprehensive Anti-Drug law or Republic Act 9165. Bong Abapo claimed the seized firearms are licensed and there are no other evidence but waste materials that smell like chemicals. Masbateños who know Lovely cannot believe the young provincial board member could be involved in illegal drug. At 30, she is a second-term provincial board member of the province’s Second District and second among the four winners in the district. Lovely has no record of any illegal activity, they claimed. “She is dumb if she would have the alleged laboratory right in their residence, so it’s hard to believe the accusation against her,” a supporter said. PNA

Opinion BusinessMirror

A10 Monday, February 16, 2015

editorial ‘It’s not business; only personal’

OR a nation with a population of 100 million, the Philippines often seems like a small village or maybe a thousand small villages but all interconnected.

We almost all self-identify from a particular province and then by clan and family. We are never actually surprised to learn that a person that we have done business with for years turns out to be the first-cousin of our best friend from high school. We criticize the fact that the economic and social structure is considered oligarchic–a structure in which power effectively rests with a small number of people. Yet the oligarchy is deep-rooted because so many Filipinos are related by blood, marriage, or by the affinity of factors like schools attended. And we like the fact that we are all associated. Taking advantage of the fact that a relative, even a distant relative, works in a government office that we must interact with is commonplace. A fresh graduate often looks first for employment at the company where he or she has ‘contacts’ or a potential ‘backer.’ These relationships are not only cultural but an integral part of our businesses. While there are personal advantages to this system of personal relationships, there are also some greater downsides. In order to preserve the oligarchic structure, either personal or business, competing groups must be careful not to take too much power away from the others. It may be somewhat unfair to legitimate businesses, but crime families do carve up territories to make sure all can survive and thrive as long as there is cooperation. Even as it is nearly indisputable that in the past there have been types of “gentlemen’s agreements” to limit competition, this has usually happened on a case-to-case basis. True monopolies were more or less ended some 30 years ago. Even with the current state of competition in the telecommunications business, companies must still compete for a limited number of customers. Further, as a succeeding generation of business leaders take control of long established, primarily family corporations, combined with a more global business model, competition becomes more ‘business’ than ‘personal’. Family corporations can be economically beneficial to a country because there is continuity and these businesses tend to be more financially conservative. However, in our political arena, it often appears that it is mostly personal and not business. Political ‘corporations’ may provide continuity but also may not be as advantageous as corporate continuity. Business corporations must succeed and turn a profit or die. Political corporations can live forever even if run badly with inefficiency and infectiveness. Perhaps if our Filipino politics was run as well as our Filipino business community, we might see more positive changes for the nation. Perhaps we need more “It’s only business; not personal” in our political scene.

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PCSO, PhilHealth ink landmark pact nnn

Atty. Jose Ferdinand M. Rojas II

RISING SUN

N line with their missions to provide “universal health care for all Filipinos,” a key policy of President Benigno Aquino III, the Philippine Charity Sweepstakes Office (PCSO) and Philippine Health Insurance Corp. (Philhealth) inked an agreement that will greatly benefit people in need of financial assistance for medical concerns. The signing, which took place during Philhealth’s 20th anniversary program on February 12, is part of government agencies’ efforts towards synergy by cooperating with each other in appropriate and significant ways to help the public gain easier, faster, and more convenient access to government services. The signatories were Philhealth President and Chief Executive Officer Alexander A. Padilla and myself as acting chairman and general manager of PCSO. The agreement between the two agencies is for PCSO to provide a space for an off-site Philhealth office, a “Philhealth Help Desk,” as it were. Philhealth will give trained PCSO personnel limited (readonly) access to its Institutional Health Care Provider electronic portal. This will allow the authorized PCSO employees to check if

the person applying for financial assistance for medical- and healthrelated concerns is a Philhealth member or a member’s qualified dependent. This will greatly facilitate the processing of requests for financial assistance under the PCSO’s flagship Individual Medical Assistance Program, which provides around P16 million a day to qualified beneficiaries nationwide. The service will soon be available at PCSO’s extension office at the Lung Center of the Philippines, Quezon City, where the agency’s Charity Assistance and Medical Services departments are located. We trust that the public will make good use of the service, as it will cut time and effort spent in transacting with both our agencies. We also extend our warmest congratulations to Philhealth on their 20th anniversary.

THE PCSO Lotto shares of Metro Manila local government units for the period July to December 2014, as well as various endowment funds, are available for release to the concerned LGUs, hospitals, and institutional partners. Over P75.69 million is ready for claiming by 17 cities. These include: Kalookan (P4.63 million); Las Piñas (P3.44 million); Manila (P14.57 million); Makati (P2.58 million); Malabon (P1.45 million); Mandaluyong (P3.62 million); Marikina (P2.79 million); Muntinlupa (P2.33 million); Navotas (P1 million); Parañaque (P4.84 million); Pasig (P4.47 million); Pasay (P3.92 million); Pateros (P463,494); Quezon City (P18.17 million); San Juan (P1.33 million); Taguig (P3.31 million); and, Valenzuela (P2.71 million). The payees may claim their checks from the PCSO head office in Mandaluyong City. Under its charter, Republic Act 1169, PCSO allocates 30 percent from its net receipts from Lotto operations to a Charity Fund, from which funds for the agency’s medical and healthcare-related programs are drawn. Under Executive Order 357, s. 1996, five percent of the PCSO Charity Fund is granted to local government units (LGU) where Lotto outlets are located. The more outlets there are in an area, the higher the corresponding LGU shares. We encourage LGUs around the

country to host PCSO’s outlets so that they can avail of the LGU shares that they may use for their area’s social programs. Also available for release are endowment fund checks for 11 hospitals and three institutional partners nationwide: Buluan District Hospital (P500,000); Cuyo District Hospital (P300,000); Datu Halun Sakilan Memorial Hospital (P500,000); Naguilian District Hospital (P300,000); Balaoan District Hospital (P300,000); Ma r i h at ag D i st r ic t Hospit a l (P300,000); JR Borja General Hospital (P1 million); South Cotabato Provincial Hospital (P1 million); Davao Regional Hospital (P2.5 million); Tondo Medical Center (P2.5 million); Misamis Occidental Provincial Hospital (P1 million); Bacolod Boys Home Foundation (P406,125); Philippine Band of Mercy (P1 million); and, Por Cristo Foundation Inc. (P270,570), for a total of P11.87 million. The funds for all these endeavors are raised from Lotto and other games, and we appeal to the public for their support of PCSO games, in particular the new Ultra Lotto 6/58. For every ticket you buy, you not only have the chance to become a millionaire, but you are also helping fellow Filipinos around the country. Atty. Jose Ferdinand M. Rojas II is vice-chairman and general manager of the Philippine Charity Sweepstakes Office.

Laguna Lakeshore Expressway-Dike Project: Two birds with one stone!

By Guenter Taus

NE of the projects under the Aquino administration’s Public-Private Partnership (PPP) Program which has attracted much local and international attention is the Laguna Lakeshore Expressway-Dike Project (LLEDP).

With an estimated value of P122 Billion, the LLEDP is the largest PPP project to date and the National Economic and Development Authority has already given the go ahead for its implementation. While the project value is obviously the main reason for spawning interest among private investors both local and international, the residents of Metro Manila and of the cities and municipalities surrounding the lake should understand how this project would impact us. The LLEDP is part of the master plan to increase flood resilience in Metro Manila as well the master plan for high standard highway in Metro Manila and its 200km sphere. The project is aimed to address two major problems that beset Metro Manila–flooding and traffic congestion.

The flooding in Metro Manila and in surrounding municipalities is attributed to a large part by the overflow from Laguna Lake during extreme weather conditions. The feasibility study claims that creation of a dike along the western portion of the lake, 500 meters away from the shoreline, would prevent the backflow of water from the lake and thus reduce the impact of flooding in Metro Manila and coastal communities along the western portion of the lake. The floodgates will also control the inflow of flood water coming from large rivers such as Marikina River into the lake. The dike is also designed to function dually as a six-lane expressway spanning 47 kilometres from C6 in Taguig City all the way to Los Baños, with eight interchanges. This

expressway will facilitate traffic flow from Metro Manila to Laguna, providing an alternative to EDSA, thereby decongesting traffic in Metro Manila. The expresswaydike is also envisioned to promote the efficient movement of cargo as well as individuals, thus reducing travel time and cost from Metro Manila to Laguna. Another major component of the LLEDP is the proposed reclamation of around 700 hectares of land, about 150 meters from the shoreline along Bicutan, Sucat and Muntinlupa for property development which should enhance revenues for project financing. Apart from creating prime land asset and increased economic activity from the property development, this reclamation component is also aimed at easing the overcrowding of Metro Manila by providing an alternative area both for residential and commercial use. While these plans seem fascinating and desirable, the development and increased economic activities along the perimeter of the lake also pose environmental concerns such

as its impact on the water quality of the lake for obviously, waste generated from these developed areas could possibly find their way back into the lake if not properly monitored and if regulations are not strictly enforced. There is also concern whether the current proposed design of the expressway-dike will actually work. However, we leave such discussion to the technical experts. With barely 16 months left, there is doubt that the present administration will still be able to jumpstart this project and obviously it will no longer be there to see it to completion. It is hoped that the successor to the Aquino administration will continue to see the value in this project, carefully evaluate and plug the loopholes, if any in order to address the problems of flooding and traffic congestion and achieve a reasonable balance between ecology and economic development. Guenter Taus is vice president of the Board of Directors of the European Chamber of Commerce of the Philippines

Opinion BusinessMirror

opinion@businessmirror.com.ph

Which central banks matter?

Fire him

Does any of this matter beyond the boundaries of the monetary area governed by the relevant central bank? Does the ECB matter to Asia? Does the negative interest rate of the Danmarks National bank have a bearing on events in the United States? In most cases the international implications of central bank policy are limited. This is largely because the whole world of money, liquidity and thus central bank policy is a very parochial affair. The fact that the ECB plans to print more than a trillion Euros means that has increased the potential claims on Euro area goods and services, not on goods and services produced in Asia or the Americas. The idea that Euro liquidity, or indeed Japanese liquidity, could “replace” American liquidity is entirely erroneous. Try paying for a round of drinks in a bar in Dallas, Texas using Euro notes and coins, and you will soon discover the geographical limits of the ECB’s liquidity. (It should be pointed out that if you do try and pay for drinks in Dallas using Euros, you do so entirely at your own risk.) The main mechanism whereby these various national monetary policies have an international impact is via the currency markets. This is perhaps inevitable–the foreign exchange rate of a currency is the international manifestation of its domestic worth. However, foreign exchange markets are complex. There is no clear universal model for foreign exchange forecasting. Currency movements are not just a function of domestic monetary policies. At the very least the monetary policy of the other currency must be considered–if the Euro’s value against the dollar is affected by the policies of the ECB, then logically it must also be affected by the policies of the US Federal Reserve, independent of whatever the ECB is doing. The exception to the localized nature of central bank policy is the action taken by the Swiss National Bank, and potentially also the Monetary Authority of Singapore (MAS). This may seem odd at first: compared to the neighboring Euro area the Swiss economy is relatively small. Switzerland’s policy decision saw an appreciation of its currency and a move to more negative interest rates. Singapore as a city state is also a comparatively small economy in the global scheme of things, and MAS simply slowed the rate of currency appreciation. Why are these decisions so important? The global relevance of the Swiss and potentially the Singaporean

policy changes lies in the uncertainty that the moves have created. Swiss National Bank officials were declaring that the limits on franc appreciation were firmly in place only days before the peg was abandoned. There was no anticipation of the move in financial markets. The abrupt move in the currency (40 percent against the Euro at one point) testifies to the complete surprise of the decision. For Singapore the idea of an easing of policy at some point was expected, but the timing of the decision was a surprise to financial markets because it was outside of the normal policy cycle (the last time that happened was 2001). Since the onset of the global financial crisis, central banks have generally been engaged in a policy of trying to minimize most forms of risk and uncertainty in the financial system. The quantitative policies of the US, the UK and Japan were all aimed at reducing liquidity risk in the markets (liquidity risk is a powerful form of risk that will raise interest rates in the real world). What the Swiss and perhaps the Singaporean policies have done is once again inject an element of uncertainty, and with that risk, into global financial markets. Monetary policy may be a local concept but, with globalized financial markets, risk and risk aversion are global concepts. If the idea that “you cannot rely on what a central banker says” becomes common currency in the world’s markets, then the global risk premium may increase. This is why the ECB policy decision is not terribly important; it was generally anticipated, it does not change very much economically, and could be classified as a commitment as much as anything. The SNB and MAS have acted in a way to raise uncertainty, and uncertainty and risk have repercussions outside their borders. If financial markets are not ready for uncertainty, the consequences of these actions could be both long-lived and potentially disruptive.

in electricity generation could, if the right kinds of finance were available, produce benefits by spurring investment and creating jobs. It’s hard to imagine that a hundred years from now, our descendants in an ecologically integrated society based on solar energy will despair that their ancestors took steps too early, and didn’t benefit by burning some more fossil fuel. The positives could include a range of social and economic transformations–new technologies, new ways of employing people and resources, new kinds of economic organization. Today these possibilities do not even enter into the cost-benefit studies on what to do about climate change.

This thinking runs more along the lines of creative destruction envisioned by the economist Joseph Schumpeter in the early 20th century. There’s also an interesting historical analogy: A couple of centuries ago, many nations thought that free trade was a bad idea, and no one wanted to go first. Great Britain took the lead, ended up gaining early skills and experience in trade, and got ahead because of it. Soon other nations did the same. The current unimaginative mindset may be the single biggest obstacle to achieving global action on climate. The only benefits we imagine are those that come directly from avoided damage, and the cost estimates are driven

by severely limited economic models. If current economic theories didn’t even allow for a financial meltdown like that of 2007 to 2008, why should we trust them as a guide to the coming decades? If we perceive climate policy as a problem in opportunity sharing, everything changes. Rather than dragging our heels to lose the least, we ought to be trying to gain the most. In this way of thinking, the Obama administration’s plans–which include redirecting tax subsidies from oil and gas toward companies developing solar and other alternative energy sources–may well be pro-growth and pro-business all the way.

N the senate’s first hearing last Monday, a general in forest green said that if the army came in full force to give effective relief to the beleaguered SAF, it could have ignited fighting throughout Mindanao. Then he made a facial expression of bewilderment and panic. First, that’s bullshit. The enemy is not that many. But clearly the peace talks have compromised the military mission to an extent the even to the extent President Aquino never contemplated. After all he ordered the

Paul Donovan is the managing director and deputy head of global economics of Zurich-headquartered UBS. He is responsible for formulating and presenting the UBS Investment Research global economic view, drawing on the bank’s worldwide resources. Donovan took up philosophy, politics and economics at Oxford University. He holds an MSc in financial economics from the University of London. In the Philippines, his column will appear exclusively once a month in the BusinessMirror.

By Mark Buchanan

ARACK Obama’s administration wants to spend more than $10 billion to spur renewable energy development–a move that has been cast as an important step toward sharing the burden of combating global climate change. But what if it isn’t really a burden at all? What if the thing being shared is actually an opportunity? In the typical economic analysis, greenhouse-gas emissions create longterm risks, which can be reduced only through measures that will stunt economic growth today. Hence, the question is how much of a burden we are willing to take on now to avoid problems later. The most economically efficient solution is to find the point at

by political considerations we have given him the discretion to join the enemy. That happened to France in the German invasion. That general should be fired for having an opinion and the wrong one at that. No general should ever confess his, and worse yet the armed forces’ comprehensive weakness to preserve and protect everywhere their writ runs which is to say everywhere in our Republic. His words will be used by peace negotiators to argue before a cowardly Congress for the adoption of the BBL as a treaty of surrender to an enemy which, to be sure, has killed many of our soldiers– mostly by treachery–but never defeated the Republic for which they stand and fight.

Free fire

Saving the planet the easy way

operation to take out high value targets wherever they happen to be so he wasn’t afraid of the conflict spreading. He was led to believe by the peace panel that this was an ex-

ception to the truce. And no part of the republic can be designated as enemy territory, certainly not legally, except for tactical purposes. But that regardless, a general cannot entertain political thoughts even if he shares those of the president. Generals must not think outside the parameters of fighting, regardless of the consequences outside an expanding theater of operation. Absent a presidential order to abandon our men after their successful mission–which the US Marines would never do even if the US President ordered it–the standing order or rather the understand is to save as many of them by killing as many of the enemy to achieve that aim. The moment we have generals whose duty to fight is tempered

Teddy Locsin Jr.

Paul Donovan HE start of 2015 has brought with it a flurry of central bank activity. The Swiss National Bank abandoned its policy of limiting the value of the Swiss franc against the Euro. The European Central Bank (ECB) undertook to purchase sovereign government bonds (albeit using a slightly peculiar structure). The Canadians cut their interest rate. The Danes took their official deposit rate back into negative territory. Singapore unexpectedly eased its policy (via the currency markets). It is all dramatic stuff.

Monday, February 16, 2015 A11

which the cost of eliminating a unit of current emissions matches the value of future destruction averted. This framing of the matter, though, might not be as well-founded as it seems. Chinese economists Yongsheng Zhang and He-ling Shi, for example, argue that some mitigation strategies may actually promote local economic

growth. Recent research suggests, for example, that a better natural environment can improve the quality of resources and human capital, enabling technology to advance more quickly. In this sense, taking steps to reduce greenhouse-gas emissions can actually boost growth in the near term. Other research points in the same direction. Environmental economists at the University of Cambridge note that the typical pessimistic conclusions about the costs of mitigation largely reflect the use of standard economic modeling techniques. Using more general, nonequilibrium models, they find a wide range of conditions under which emissions reductions

2nd Front Page BusinessMirror

A12 Monday, February 16, 2015

BIR cuts revenue goal on new tax exemptions By David Cagahastian

he Bureau of Internal Revenue (BIR) has scaled back its collection target for this year by P16.9 billion as a result of additional tax exemptions, which diminishes its tax take, granted by law to taxpayers recently. Internal Revenue Commissioner Kim Jacinto-Henares issued Revenue Memorandum Order 4-2015 setting the collection target of only P1.704 trillion, down from an earlier collection target of P1.721 trillion. Henares said the lowering of the collection target was due to the increase in socalled allowable de minimis benefits, which are exempt from tax, that may be granted by employers to their employees. De minimis benefits are privileges given by an employer to employees to promote the workers’ health, company goodwill and efficiency of employees. Current allowable de minimis benefits include, among others, P750 medical cash allowance to dependents; P1,500 for a 50-kilogram rice subsidy; P4,000 uniform and clothing allowance per year; P10,000 for annual medical allowance; P300 laundry allowance; P10,000 for employees achievement award; P5,000 Christmas gifts and/or anniversary

certificate; and 25-percent meal allowance for overtime work and night shift in all regions. Although the increase in de minimis benefits will result in foregone revenues for the government, Finance Secretary Cesar V. Purisima has welcomed such increase in allowable benefits to workers as a “fairer and more equitable” tax relief than other measures that benefit only a small percentage of the working population, such as tax incentives to certain businesses that the Department of Finance wants to rationalize. The lowering of the collection target by the BIR was also brought about by the newly enacted law raising to P82,000 the maximum allowable year-end bonuses that will be exempt from tax. The previous maximum amount of nontaxable year-end bonuses was only P30,000. Of the total P1.704-trillion collection target, P1.023 trillion was targeted to be collected as tax on net income and profits, value-added tax target of another P373.83 billion and excise taxes of P1.40.44 billion. The targets for percentage and other taxes were set at P79.14 billion and P86.96 billion, respectively. The P1.704-trillion collection target for this year was 17 percent higher than the P1.456-trillion collection target in 2014.

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Manila urged to push use of PPPs during Apec meet

By Cai U. Ordinario

he Philippines should conduct further discussions on publicprivate partnerships (PPPs) to address infrastructure gaps in AsiaPacific Economic Cooperation (Apec) member-countries, according to a study released by the Philippine Institute for Development Studies (PIDS).

This was one of the key findings of the discussion paper titled “Philippine Priorities in Expanding Apec-Wide Connectivity through Infrastructure Development” authored by PIDS senior research fellow Adoracion M. Navarro. The study stated the country can help drive the PPP discussions by focusing on the need

to share knowledge and best practices, particularly on risk allocation, contract design, and management and monitoring. “The Philippines can ask for regional cooperation on sustained, dynamic and productive capacity-building assistance for PPP units in less advanced Apec members so that they can generate a pipeline of bankable

infrastructure PPPs. Since knowledge on PPPs is not static, capacity-building should be dynamic,” Navarro said. The PPP route, Navarro said, will help Apec economies, including the Philippines, address financing options for infrastructure development. Navarro said the Philippines’s public infrastructure spending only equaled 1.4 percent of local putput or the gross domestic product (GDP) in 2008 and 2.09 percent of GDP in 2012. The government intended to increase public infrastructure spending to 5 percent of GDP by 2016. While the government’s socalled fiscal space has grown in recent years, Navarro said government revenues remain inadequate to support much-needed public spending for infrastructure. Philippine government revenue collections amounting to only P1.72 trillion or $39

billion in 2013 equaled only 14.8 percent of GDP. This was below the average revenue-to-GDP ratio of 18.6 in the Asean region. Navarro added that other funding sources, such as Official Development Assistance (ODA), has declined in recent years. Data from the National Economic and Development Authority (Neda) show net commitment levels declining to only $9.09 billion in 2013 from $10.58 billion in 2004. “A decreasing trend in Philippine ODA loans for infrastructure has been observed in 2008 to 2012. This is likely related to the fact that the government’s fiscal space is improving and some of the infrastructure projects in the public investment program were restudied and became part of the PPP program,” the study stated. Continued on A2

HIGH-END ‘KATOL’ The lowly katol, traditional antimosquito coils, gets a makeover at a bazaar selling forexport ceramics made from Pampanga. ROY DOMINGO

MAMASAPANO CLASH COULD BE END OF THE ROAD FOR BBL By Jovee Marie dela Cruz

he “massacre” of the 44 members of the Philippine National Police-Special Action Force (PNP-SAF) allegedly by the Moro Islamic Liberation Front (MILF) and the Bangsamoro Islamic Freedom Fighter could prove to be the “end of the road” for the proposed Bangsamoro basic law (BBL), as several lawmakers have already withdrawn their support for the measure, a legislator said on Sunday. Nationalist People’s Coalition Rep. Sherwin Gatchalian of Valenzuela said Congress has been under intense pressure to immediately approve the BBL following the Mamasapano encounter between SAF and MILF on January 25. “I believe that the BBL, at this point, has reached a political deadend. It is like the BBL has been declared dead on arrival and has no chance of being resuscitated due to the slaughter of SAF personnel by MILF elements,” Gatchalian said. He said the January 25 bloody clash between police forces and MILF rebels can be a major stumbling block to the peace process and could permanently derail the passage of the BBL, as he observed that several congressmen have already withdrawn their support for the proposed law, which is a prerequisite for the establishment of the Bangsamoro entity that will replace the Autonomous Region in Muslim Mindanao (ARMM). In Senate, Senators Joseph Victor Ejercito and Alan Peter Cayetano have also withdrawn their support for the measure following the incident. Even Liberal Party Rep. Karlo Nograles of Davao, who is a member of the special ad hoc panel on the BBL, has said that the deadly attack against the members of the PNP-SAF in Mamasapano, Maguindanao, is now endangering

the passage of the BBL. Moreover, Gatchalian said the “only thing that can salvage the BBL at this point is for the MILF to issue a firm statement that the perpetrators from their ranks will be immediately turned over to the government once they are found liable by the proper investigating bodies.” Earlier, the House Ad Hoc Committee on Bangsamoro Basic Law chaired by Pwersa ng Masang Pilipino Rep. Rufus Rodriguez of Cagayan de Oro has indefinitely suspended its deliberations on the proposed BBL pending the lower chamber investigation on the incident. The BBL aims to create the new Bangsamoro juridical entity replacing the ARMM. Rodriguez also admitted that the lawmakers’ support for the BBL has been eroded following the Mamasapano encounter between SAF and Moro rebels. The lower chamber is set to resume its probe on Mamasapano incident on Tuesday and Wednesday. Malacañang on Sunday said it will not stand in the way of ongoing efforts to correct “legal infirmities” in the original version of the BBL that the Palace endorsed for early approval by Congress. Communications Secretary Herminio B. Coloma Jr. said lawmakers are free to amend the perceived constitutional defects cited by legal experts to prevent the BBL from being thrown out if challenged in the Supreme Court. Coloma conceded Congress is empowered to amend what lawmakers deem to be fatal flaws of the BBL, which President Aquino is expected to promptly sign into law as soon as it is passed on final reading by the Senate and the House of Representatives. “That is what they have been doing since the draft BBL was submitted to them,” Coloma told the BusinessMirror. With Butch Fernandez