Businessmirror january 25, 2015

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week ahead

ECONOMIC DATA PREVIEW

Foreign exchange

n Previous week: The local currency showed a continuous appreciating trend in the previous week coming from the upper end of the 44 territory down to the lower end. The trading week started on Tuesday, as Monday was declared a trading holiday due to the pope’s state and pastoral visit to the Philippines. The peso opened the week at 44.61 against the greenback, then appreciated to 44.4 to a dollar on Wednesday.

The currency continued to trace a strong peso trend to hit 44.32 to a dollar on Thursday, and ended the week at 44.18 to a dollar.

Friday’s close was the strongest for the peso since September last year. The total traded volume is at $3.2 billion, larger than last week’s $2.1 billion.

n Week ahead: In a chance interview with BDO Unibank Inc. chief market strategist Jonathan Ravelas, he said the appreciating trend in the previous week is part of the market’s correction. He further said the bias for a strong dollar is still on the horizon. Markets are expected to look forward to the upcoming local data, although most of them will still come at the end of the week. Ravelas said, for the upcoming week, the peso is likely to range still within the lower band of the 44 territory.

GDP (fourth quarter) January 29 (Friday)

n Q3 GDP: The local economy posted a weaker-than-expected growth in the third quarter of last year at 5.3 percent. The government pointed to the slump in agricultural production and the national government’s inability to disburse the funds See “Outlook,” A2

A broader look at today’s business

n Sunday, January 25, 2015 Vol. 10 No. 108

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

Slowing growth trend won’t affect PHL credit rating–S&P

T

By Bianca Cuaresma

HE country’s economy can now heave a sigh of relief. The Philippines’s slowing growth trend, as seen from 2013 to the first three quarters of 2014, will have no negative impact on the much-celebrated credit-rating upgrades that the country has received in recent times, an international credit watcher said.

In its Asia-Pacific 2015 sovereign rating trends webcast, major credit watcher Standard & Poor’s (S&P) said the country will not be seeing any downgrade even if its growth slowed down by about 1 or 2 percentage points, alleviating the fears that the country might return to junk status because it was not able to sustain its high growth rate.

“It is quite straightforward....

This growth trajectory, despite being slower than what we saw, does not affect the ratings negatively,” S&P Senior Director Kim Eng Tan responded, when asked if the country is poised for a downgrade with its slowing growth.

Kim, however, warned that if the government institutes structural changes that will cause the fiscal and economic stability to falter, then that could trigger a downgrade.

Tan also bared that S&P expects growth to be within the 6-percent territory this year and the next, and is seen to grow “even below that” in 2017.

These rough estimates of S&P are all below the government’s tar-

Oil Falls to Lowest Since March 2009 as Saudis Signal Continuity

TAN: “This growth trajectory, despite being slower than what we saw, does not affect the ratings negatively.”

gets set for each year, and are contradictory to the projected path of the economic managers of the country, which is geared on an upward trend.

The Philippine economy has completed the first ascent to the investment-grade ladder in 2013, when the country has been hitting a growth rate of about 7 percent—except on the fourth quarter of that year, when the economic gowth fell to about 6 percent, owing to the disruptions caused by Supertyphoon Yolanda (international code name Haiyan).

It was during that year when all three major credit watchers— Moody’s Investors Service, Fitch Ratings and S&P—lifted the country from the junk status.

See “Growth,” A2

Money supply, loan growth won’t fuel asset bubble

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HE current level of money supply and high loan growth is deemed enough to power the economy without fueling asset bubbles, an economist said.

In the recent Philippine Economic Briefing at the Ateneo Professional Schools campus in Makati City, an Eagle Watch member, Alvin Ang, said that the current money-supply growth is enough to sustain the country’s growing gross domestic product.

The Eagle Watch is the economic research and forecasting arm of the Ateneo Economics Department.

Latest data from the central bank showed that the monetary growth of the country decelerated to 9 percent in November

2014, owing to the central bank’s measured adjustments in the monetary-policy settings.

In absolute terms, the cash circulating in the country is about $7.43 trillion during the latest recorded period.

November’s cash-supply growth is the slowest for the country in more than two years, or since October 2012, when it hit an 8.7-percent growth. The month’s expansion rate is also now below the Bangko Sentral ng Pilipinas’s target range of M3 growth toward the end of the year, at around 18 percent to 15 percent, as earlier said by central bank officials.

Ang also noted that, although the growth of bank lending in the country is still in the double-digit

PESO exchange rates n US 44.3610

pace, it does not pose a risk, as it is being more diversified and channeled to productive sectors in the economy.

Last year economists and analysts expressed worries on the country’s money-supply growth, which peaked at about 30 percent in the first quarter of 2014.

Experts feared that high monetary growth would stoke inflationary pressures and, therefore, cause instability to prices and disrupt the country’s financial stability.

This prompted the central bank to implement tightening measures to tame cash-supply growth and inflation.

The country’s end-2014 cash supply growth will be released on January 30. Bianca Cuaresma

O

By Moming Zhou | Bloomberg

il fell to the lowest in almost six years on speculation that the death of King Abdullah of Saudi Arabia won’t signal any change in strategy for the world’s largest crude exporter.

US benchmark oil futures slid 1.6 percent, reversing an initial gain of as much as 3.1 percent.

Salman Bin Abdul-Aziz Al Saud, who succeeds Abdullah on the throne, said he would maintain his predecessor’s policies (See related stories on pages C2 and C3).

The Kingdom will not cut production to boost prices because other producers would fill See “Oil,” A2

n japan 0.3741 n UK 66.5238 n HK 5.7234 n CHINA 7.1441 n singapore 33.1052 n australia 35.9868 n EU 50.2965 n SAUDI arabia 11.8094 Source: BSP (23 January 2015)

News

BusinessMirror

A2 Sunday, January 25, 2015

Oil...

continued from A1 in the gap, Saudi Prince Alwaleed Bin Talal Al Saud said. US crude inventories rose the most since 2001 last week, according to a government report on Thursday.

“There already has been a pretty well-established succession plan, so it’s not a big deal,” said Kyle Cooper, director of commodities research at IAF Advisors in Houston.

“Supply has been very stout and demand’s not been what people had expected. It highlights the bearish sentiment in the market.”

Oil has slumped about 36 percent since the Organization of the Petroleum Exporting Countries’ (Opec) November 27 accord to maintain production at 30 million barrels a day amid a glut caused in part by the fastest US output in three decades.

Saudi Arabia’s oil strategy is likely to remain unchanged as King Salman assumes power, Fatih Birol, chief economist at the International En-

Central Bank widened its stimulus program. A stronger dollar reduced oil’s investment appeal.

Saudi Oil Minister Ali AlNaimi, who led Opec’s November decision to defend market share against surging US shale supplies, remains in his post, according to state-run Saudi Press Agency.

“The mild market reaction is pretty rational,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “It’s highly unlikely that you are going to see any major change in oil policy.”

Oil won’t return to $100 a barrel and global oil supply will be affected by the price slump, Alwaleed said in an interview with Bloomberg TV on Friday.

“If we reduce our production some other countries will fill that gap,” he said. Saudi Arabia isn’t happy with low prices, “but it’s something you have to face head on without hesitation.”

ergy Agency, said at the World Economic Forum in Davos, Switzerland.

Stronger dollar

West Texas Intermediate crude for March delivery fell 72 cents to end at $45.59 a barrel on the New York Mercantile Exchange, the lowest settlement since March 11, 2009. Futures fell 6.4 percent this week. The volume of all futures was about 13 percent above the 100-day average.

Brent crude for March settlement advanced 27 cents, or 0.6 percent, to $48.79 a barrel on the ICE Futures Europe exchange, after climbing to $49.80. Volume was 2 percent above the 100-day average.

Brent, used to price more than half the world’s oil, ended at a premium of $3.20 to WTI on the ICE, compared with $1.04 on January 16.

The euro dropped to the lowest level in more than 11 years versus the dollar as the European

Growth...

continued from A1

This year S&P and Moody’s gave the country another upgrade amid the lower growth rates.

The Philippine economy posted a slower-than-expected growth rate at 5.3 percent in the third quarter of 2014, owing to the slump in agricultural production and the government’s inability to disburse funds.

But despite the lower growth, the Bangko Sentral said the country is seen to bounce back in the fourth quarter of the year as pointed by early indicators.

In its fourth-quarter full inflation report, the BSP said the prospects for domestic demand remain firm, as seen in strong private spending, recovery of capital formation, external trade strengthening of the global manufacturing industry, higher vehicle sales and buoyant business and consumer sentiment, all in the last quarter of 2014.

3-DAY EXTENDED FORECAST JANUARY 25, 2015 | SUNDAY

TODAY’S WEATHER

news@businessmirror.com.ph

JAN 26 MONDAY

JAN 27 TUESDAY

METRO MANILA

20 – 31°C

21 – 31°C

TUGUEGARAO

20 – 28°C

21 – 28°C

Outlook...

allotted for productive sectors during the period. The growth in the third quarter of 2014 is the lowest for the country in three years and has brought the expected annual growth rate for 2014 outside the target for the year.

n Q4 GDP: Private economists and government officials alike foresee a slight rebound of growth in the last quarter of the year, although not back to the the 7-percent territory as seen in 2013. The BSP, in its full-year inflation report, said high-frequency indicators, such as vehicle sales and purchasing managers index, showed that demand during the period remained buoyant. Moody’s Analytics forecasted a 6.1-percent growth for the period.

M3 growth (December) January 30 (Friday)

n Previous M3 growth: The country’s domestic liquidity—as

JAN 28 WEDNESDAY

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

LAOAG

BAGUIO

LAOAG CITY 18 – 27°C

TUGUEGARAO CITY 19 – 27°C

BAGUIO CITY 12 – 20°C

SBMA/ CLARK

SBMA/CLARK 22 – 30°C METRO MANILA 21 – 30°C

JAN 26 MONDAY

JAN 27 TUESDAY

JAN 28 WEDNESDAY

20 – 30°C

METRO CEBU

23 – 29°C

24 – 30°C

23 – 30°C

21 – 29°C

TACLOBAN

23 – 30°C

23 – 29°C

23 – 30°C

21 – 30°C

CAGAYAN DE ORO

TAGAYTAY CITY 18 – 28°C

TAGAYTAY

20 – 29°C

12 – 21°C

23 – 31°C

19 – 28°C

21 – 30°C

24 – 31°C

24 – 30°C

24 – 32°C

METRO DAVAO

13 – 22°C

24 – 33°C

25 – 33°C

23 – 31°C

24 – 33°C

24 – 34°C

19 – 29°C

13 – 21°C

22 – 32°C

LEGAZPI ILOILO/ BACOLOD 23 – 30°C METRO CEBU 23 – 30°C

TACLOBAN CITY 23 – 30°C

CAGAYAN DE ORO CITY 24 – 31°C

PUERTO PRINCESA

ILOILO/ BACOLOD

24 – 30°C

22 – 29°C

ZAMBOANGA

SUNSET

MOONSET

MOONRISE

6:25 AM

5:51 PM

10:38 PM

10:04 AM

22 – 29°C

NEW MOON HALF MOON

23 – 30°C

24 – 31°C

23 – 30°C

24 – 31°C

LOW TIDEMANILA HIGH TIDE SOUTH HARBOR

JAN 20

24 – 30°C

24 – 34°C

SUNRISE

9:14 PM

24 – 30°C

24 – 33°C

20 – 29°C

LEGAZPI CITY 24 – 30°C

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

3-DAY EXTENDED FORECAST

broadly measured by M3—grew by 9 percent in November 2014.

This is a significant deceleration from the 15.4-percent expansion seen in October 2014. November’s cash-supply growth is the slowest for the country in over two years, or since October 2012, when it hit an 8.7-percent growth. In absolute terms, the total cash circulating in the economy as of end-November last year is at P7.3 trillion.

n December M3 growth: BSP Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo said the M3 growth in the country is healthy enough and does not pose a risk anymore to the economy, as agreed upon by private economist Alvin Ang (see related story). He also said that M3 is expected to “further normalize” in the coming months. Bianca Cuaresma

NORTHEAST MONSOON AFFECTING LUZON. TAIL-END OF A COLD FRONT AFFECTING EASTERN VISAYAS. (AS OF JANUARY 24, 5:00 AM)

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.

PUERTO PRINCESA CITY 23 – 30°C

continued from A1

JAN 27

12:48 PM

8:16 AM

0.03 METER

1:00 AM

0.96 METER

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

ZAMBOANGA CITY 23 – 33°C

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

METRO DAVAO 25 – 33°C

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www.businessmirror.com.ph • Editor: Vittorio V. Vitug

Sunday, January 25, 2015 A3

P69.17-B PPP projects set for rollout in Q1

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By Lesli D. Venzon | Philippines News Agency

HE Aquino administration is set to roll out this quarter two major infrastructure projects worth P69.17 billion under the PublicPrivate Partnership (PPP) Program.

PPP Center Executive Director Cosette Canilao said these are the P18.99-billion Davao Sasa Port Modernization Project and the P50.18-

billion Regional Prison Facilities (RPFs) , both of which will be implemented through PPP. “We are hoping that, within the

first quarter, these projects will be rolled out,” she said in an interview on the sidelines of a PPP event organized by the British Embassy in Manila on Friday.

The port-modernization project involves the development of the existing Davao Sasa Port in Davao City into a modern, international-standard container terminal that will improve trade access to Mindanao and the Philippines by providing a dedicated containerized port in the region.

The first of its kind in the country, the RPFs, on the other hand, entail the construction and main-

tenance of a modern prison facility in Fort Magsaysay, Nueva Ecija.

The two projects are among the nine PPP projects with combined costs of P702.78 billion targeted to be launched in 2015.

The biggest of these projects are the P374.5-billion Makati-PasayTaguig Mass Transit System Loop and the P177.21-billion North-South Rail Project (South Line).

Canilao said five PPP projects, worth P43.36 billion, are expected to be completed by the end of President Aquino’s term in 2016.

These are the two school infra-

structure projects costing P20.14 billion, the P15.52-billion Ninoy Aquino International Airport, the P5.69-billion modernization of the Philippine Orthopedic Center and the P2.01-billion Daang Hari-South Luzon Expressway link.

“There are 12 projects that are being bid out, but one of these has been awarded.... Most likely, another five projects will be approved; the others are in the process of preparation,” Canilao told reporters.

“We all want the PPP Program to be sustainable and to go beyond 2016,” she said.

P131B allotted to fund inclusive growth programs, meet MDGs

ABAD: “The government remains committed to providing ample social protection and basic social services to boost the capacity of people to rise

Lawmaker defends MRT, LRT fare hikes

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HE vice chairman of the House Committee on Appropriations has defended anew the recently implemented fare increase in the Metro Railway Transit (MRT) Line 3 and the Light Railway Transit(LRT) lines 1 and 2, saying the Filipino commuters still enjoy the lowest rate on rail systems, compared with other countries.

Liberal Party Rep. Ben Evardone of Eastern Samar said the National Economic and Development Authority and Investment Coordinating Council studies show that there was a need for a fare increase because the rates in the country’s light rail systems have remained the same for more than a decade, although bus fares have increased several times.

Evardone, however, challenged the MRT and LRT managements to ensure that improved services should be felt by the commuters in the coming months, after the implementation of the fare increase.

“The MRT and LRT managements should be transparent in the utilization of their funds to make sure that the proceeds are being used for the upgrade of the country’s rail transport system,” Evardone said.

“We should give the MRT and LRT managements chance to improve their services,” he said in a statement.

Evardone said LRT fares have remained the same for 11 years, while the MRT fares had remained unchanged for 13 years. They are both at P15, while bus fares are at P32.

In peso terms, Evardone said the Orange Line of the Tokyo Metro charges a boarding fare of P40 and P3.92 per kilometer. “If we applied the same rate to LRT-1 that would be P110.49 and P90.91 for LRT-2. For MRT-3 the same rate would amount to P106.57,” he said.

On its West Rail Line, the Hong Kong MTR charges a boarding fare of P23.20 and P2.43 per kilometer, which translates to P66.91 on the LRT-1, P54.77 on LRT-2 and P64.48 on MRT 3, if the rates applied locally.

Evardone said the Singapore MTR charges a boarding fare of P28.49 and P1.33 for every kilometer on its NS and EW lines, but, if the rate was applied here, it would cost P52.47 on LRT 1,

B

EVARDONE: “But, even with the new fares, the boarding fare is still only at P11 with P1 per kilometer.”

P45.81 on LRT 2 and P51.13 on MRT 3.

On its NE and Circle Lines, the Singapore MTR charges a boarding fare of P29.23 and P1.36 per kilometer, but that still translates to P53.75 on LRT 1, P46.94 on LRT 2 and P52.39 on MRT 3, Evardone added.

“All Filipinos dream of a system, like our neighbors, but we need to invest in rails. If we don’t invest in it we’ll never get there,” Evardone said.

Comparing the previous LRT and MRT fares to those of other countries, Evardone said boarding fare was at a uniform P9 plus 61 centavos per kilometer on LRT 1, 46 centavos on LRT 2 and 35 centavos on MRT 3.

“But, even with the new fares, the boarding fare is still only at P11 with P1 per kilometer,” Evardone added.

Meanwhile, the fare adjustments that took effect on January 4 marks the first such hike in ticket prices for Metro Manila’s train riders in a decade.

The base fare for the LRT lines 1 and 2 and the MRT is now P11 and an additional P1 will be charged for every kilometer from the station of origin.

This means that a single-journey ticket from Baclaran station to Roosevelt station will cost P30 from the present fare of P20.

Passengers, who use stored-value tickets for end-to-end trips on the LRT 1 and 2 will get a P1 discount.

For MRT 3 single-journey and stored-value tickets from Taft station to North Avenue station, or vice versa, the journey will cost P28 from the current P15.

The Department of Transportation and Communications said the fare adjustments would enable the government to save P2 billion in annual subsidies, or 17 percent of the P12 billion that it allots each year to subsidize the LRTMRT train systems. Jovee Marie N. dela Cruz

Green showcase

Participants of the Hortikultura Extravaganza “dress” themselves up for the occasion before a float parade in Quezon Memorial Circle. Horticulturalists and gardening hobbyists looking for a garden show may look forward to the Philippine Horticultural Society Inc.’s first garden show for the year, HortiKultura Extravaganza, themed “Yaman sa Paghahalaman.” Coinciding with the celebration of Quezon City’s 75th Founding Anniversary, this year’s first garden show will be from January 24 to February 2 at the Quezon Memorial Circle. Entrance is free for all attendees. Nonie Reyes

Naia flight operations seen to improve with new air traffic-management system

By Lorenz S. Marasigan

F

LIGHT operations at the Ninoy Aquino International Airport (Naia) will soon be improved, thanks to the deployment of the P160million upgraded Eurocat air trafficmanagement system at the aviation hub in Manila.

The Civil Aviation Authority of the Philippines (Caap) recently inaugurated the upgraded system, which is a computerized air-traffic control and management solution that controls en route, overflights, arriving and departing air traffic from as far as 250 nautical miles.

Before the upgrade, flights at the Naia, especially during rainy seasons, are affected by continues outages resulting in flight cancellations or diversions, as the aging system had already outlived its life span for over 19 years and parts are already obsolete and unavailable for replacement.

In partnership with Thales Aus-

tralia and Pacific Hemisphere Development, the project was inaugurated and blessed at the airways facilities complex at the regulator’s headquarters in Pasay City.

It was attended by Caap Director General William K. Hotchkiss III, Caap Deputy Director General for Operations Rodante Joya, Thales Australia Ltd. Philippines Branch Manager Raymond Lions and Pacific Hemisphere Development Managing Director Roger Ferrari, among others.

The air-safety regulator’s chief said the improvement in the air trafficmanagement system is crucial for the country as the P13.25-billion nextgeneration satellite-based Communications, Navigation, Surveillance/ Air Traffic Management (CNS/ATM) project would only be in place toward the end of 2015.

“The absence of a ready substitute is a cause for worry for Caap because if the Eurocat bogs down, the operational load

of air traffic will be affected and flights disruptions will have an effect on the Philippine airspace,” Hotchkiss said.

In June 2013 the transport agency signed an agreement with Japan-based Sumitomo Corp. and Thales Australia to restart the construction of an air traffic-management building and the supply of various components, such as automation equipment and terminal radars, to enable the use of the satellite technology-based system.

The CNS/ATM technology works by having aircraft transponders receive satellite signals and using transponder transmissions to determine the precise locations of aircraft in the sky.

It also includes a computer-based flight data-processing system that will enable aircraft operators to meet their planned times of departure and arrival and adhere to their preferred flight profiles with minimum constraints and without compromising agreed levels of safety.

UDGET Secretary Florencio B. Abad assured over the weekend that the Aquino administration remains committed to meeting its commitment to the Millennium Development Goals (MDGs) of eradicating poverty by 2015, with a total of P131 billion for inclusive growth programs.

Abad said that, of the P2.606trillion national budget for 2015, the approved allocation for basic education to effectively implement the K-to-12 revised curriculum is at P68.7 billion.

At the same time, he said, the Department of Budget and Management has allocated an increased budget of P62.3 billion for the conditional cash transfer (CCT) program assistance of some 4.3 million families this year.

“The government remains committed to providing ample social protection and basic social services to boost the capacity of people to rise from poverty,” Abad said in a 2015 nationalbudget briefer.

He added that, of the P68.7 billion allocation for basic education this year, P53.9 billion will be used for the construction of 31,728 classrooms, as well as the repair of other facilities in public elementary and high schools nationwide.

Also, he said, P11.3 billion of the allocation will be used to hire 39,066 new publicschool teachers and 1,500 nonteaching personnel.

He added that P3.5 billion of the funds will be used to buy 70.5 million new textbooks and other instructional materials to augment the increasing needs of textbooks in public schools.

Meanwhile, Abad said, as part of the MDG commitments, the government is seeking to reduce chronic and multigenerational poverty with P62.3-billion allocation for the CCT program, also known as the Pantawid Pamilyang Pilipino Program.

Estrella Torres

SundayV

Busine

A4 Sunday, January 25, 2015

editorial

Much-needed: A new immigration policy

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O this very day, starting from 1940, a lengthy period of 75 years, our immigration policy has remained focused on one single consideration: The discouragement of foreigners, through a maze of restrictive admission measures, from coming into the country to engage in business that will pose a competition to our domestic producers.

This is the policy as enunciated in Commonwealth Act of 1940, better known as “An Act to Control and Regulate the Immigration of Aliens into the Philippines.”

This is the exact opposite of the immigration policy we badly need today, which must aim precisely at the encouragement of foreigners to come into the country to engage in business— invest in the economy’s industrial and agricultural sectors, create employment opportunities for our people, make a lot of money and obey applicable laws of the land.

Thanks to Speaker Feliciano Belmonte Jr., we are about to have the policy change we direly need. Speaker Belmonte, with the support of many of his colleagues in the House of Representatives, is sponsoring a bill that will revamp our immigration policy from A to Z. As articulated in what is to be called the Philippine Immigration Act of 2015, our new immigration policy will take into account the spirit of liberalization and globalization now sweeping planet Earth. We will want to welcome the rapidly increasing number of foreigners traveling to the Philippines for various purposes, including business, employment and pleasure.

At the same time, the proposed new policy will give explicit cognizance to the new kinds of nefarious activities that have arisen in the world: Human smuggling, trafficking in persons, kidnapping, drug trafficking, even terrorism. As the Explanatory Note of the proposed bill puts it, “These criminal activities have become more complex, more threatening to the integrity of our borders, national security, national sovereignty and the rule of law.” These nefarious activities must be confronted with courage and determination.

At the moment, the Bureau of Immigration (BOI) is organizationally inadequate to deal with this changed environment. The tools available to it, legal and administrative, to carry out its mandate are similarly woefully inadequate.

The proposed bill will reorganize the BOI and convert it into a commission, “with expanded jurisdiction and streamlined powers and functions to eliminate red tape and enhance efficiency and efficacy in the bureaucracy, taking into account national sovereignty, territorial integrity, national security and the right to self-determination.

“The Bureau of Immigration will become one of the most important government agencies In view of its vital role not only as gatekeeper, but also as agent of economic development.”

At this point, we pause to give credit where credit is due: To Immigration Commissioner Siegfrid B. Mison, who, despite severe handicaps, has succeeded in the last few years in leading the BOI to commendable levels of achievement.

We lend our strongest support to this initiative of Speaker Belmonte to revamp our immigration policy, to better redirect it to the requirements of national development and the challenges of the new global environment.

Australia has to rescue itself F

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Gospel

Sunday, January 25, 2015

EW central bankers in modern history have had a better run than Australia’s Glenn Stevens. He steered his country around the global financial crisis, drove its currency to record highs and extended its recession-free run past the two-decade mark.

That’s all in jeopardy now, however, as Stevens, governor of the Reserve Bank of Australia, stands still, while China’s slowdown and deflationary forces close in. Markets are registering their disappointment by driving the Aussie dollar below $80 cents for the first time since 2009. The message from traders: It’s time for a rate cut. The question is: will Stevens act ahead of, or at, the central bank’s February 3 policy meeting?

The odds he will are rising, but remain too low for comfort. The European Central Bank’s (ECB) quantitative-easing program and the Bank of Canada’s surprise rate cut add to the pressure on Stevens to trim a benchmark rate he’s held at 2.5 percent for 17 months.

The most immediate danger is China, to which commodity-rich Australia has increasingly hitched its fortunes. The collapse in global commodity prices challenges Beijing’s claim that its economy is growing 7.3 percent. Even more than the plunge in crude oil, iron ore at its lowest price in more than five years suggests China is growing slower. Such metals fuel the Chinese urbanization trend that’s been lifting world growth. As Premier

N

As Goldman Sachs and others call an end to the commodities supercycle, the Australian government’s fiscal policies are anachronistic. Prime Minister Tony Abbott’s efforts to trim the budget deficit are out of sync with a deflationary world. The nation’s 2.7-percent growth rate has lulled the Canberra establishment—and, unfortunately, the central bank—into a dangerous complacency.

Li Keqiang explained at Davos this week, China’s move to a consumerled economy from an investment-led one is real, and the fallout will be felt everywhere. China’s “new normal” is particularly bad news for Australia’s mining industry.

“People are covering their eyes and refusing to believe that what is happening now is not just a cyclical story, but also a structural story,” economist Dong Tao of Credit Suisse told Bloomberg News.

As Goldman Sachs and others call an end to the commodities supercycle, the Australian government’s fiscal policies are anachronistic. Prime Minister Tony Abbott’s efforts to trim the budget deficit are out of sync with a deflationary world. The nation’s 2.7-percent growth rate has lulled the Canberra establishment—and, unfortunately, the central bank—into a danger-

OW, after John was arrested, Jesus came into Galilee, preaching the gospel of God and saying, “The time is fulfilled, and the kingdom of God is at hand; repent, and believe in the gospel.”

And, passing along by the Sea of Galilee, He saw Simon and Andrew, the brother of Simon, casting a net in the sea; for they were fishermen.

And Jesus said to them, “Follow Me and

ous complacency.

Though the ECB’s bond-buying dominated the week, the more important action for Australia came in Canada, a fellow “commodity currency” nation. Its January 21 move to cut its benchmark rate a quarter of a percentage point to 0.75 percent “led to a mini-explosion in speculation” that Australia might be next, says Nick Parsons of National Australia Bank. And, rightly so, considering that Australia’s key rate is at least 1.25 percentage points higher than that of any other major developed economy outside New Zealand.

Central bank policy must lead economic dynamics, not follow them.

Today’s 2.3 percent inflation rate in Australia leaves Stevens reluctant to ease policy. But more important is where prices are headed six to 12 months from now. Here, events in Singapore may be instructive. (For the Asia region, its small but open economy often acts a weathervane.)

At the moment, Singapore—where consumer prices fell 0.2 percent in December—points to deflation ahead.

Stevens should be preparing Australia for its arrival. Why isn’t he?

Perhaps it’s the RBA’s strict mandate to keep inflation between 2 percent and 3 percent. Or the same doctrinaire fear of overheating that has central banks from Seoul to Jakarta maintaining tight policies. But these blind spots can cause even the best central bankers to lose their way in this fast-changing world. Stevens must get his bearings to avoid a big policy mistake.

I will make you become fishers of men.”

And, immediately, they left their nets and followed Him. And, going on a little farther, He saw James, the son of Zeb’edee and John his brother, who were in their boat mending the nets.

And, immediately, He called them; and they left their father Zeb’edee in the boat with the hired servants, and followed Him. — Mark 1:14-20

Voices

essMirror

opinion@businessmirror.com.ph • Sunday, January 25, 2015 A5

Leave my mama alone P

Free Fire

By Teddy Locsin Jr.

IERS Morgan was at long last the good-looking face of CNN, but he was fired by public demand for being a voice of reason against that public’s insanity. Now he speaks up against something the pope said and something the pope did. Said Piers Morgan in a newspaper column, “The pope, the leader of the Catholic Church, of which I am a member, endorsed violence as a way to respond to insults. I could barely believe it, but he said it. It is there in plain language.” Asked by reporters for his response to the Charlie Hebdo massacre, the pope said, “It is a fundamental right of every person to speak his mind.” But the pope qualified his remark. “There are limits to how far this freedom extends. There are so many people today who speak badly about religions; who make fun of religions; and who make a mocking game out of the religions of others.

They are provocateurs.”

Morgan said, “This was upsetting enough, but then came the analogy which shocked me to the core.” Pope Francis added, “If my good friend Dr. Gaspari says a curse word against my mother—then a punch awaits him. It’s normal. One cannot provoke. One cannot insult the faith of others. One cannot make fun of faith,” Pope Francis told a planeload of journalists en route to the Philippines.

“But to illustrate his point,” said Morgan, “the pope threw a pretend punch toward Gaspari. The imagery was startling.”

Well, maybe to him, certainly not to me. That’s my mama you are talking about.

Morgan went on: “Here was my Holy Father, supposedly the man who espouses turning the other cheek, telling us all to whack someone in the face if they insult us.”

Meanwhile, said Morgan, an Arab

advocating reforms in Islam will be flogged 50 times a week for 20 weeks.

With what Francis said, how could Morgan condemn that now?

Morgan compared Francis’s words to the words of the murderers’ of the staff of the scurrilous— and frankly corny—Charlie Hebdo cartoon magazine.

Excuse me, Mr. Morgan, but Francis did not espouse violence for a personal insult. He did not espouse anything. He merely described the human response to an insult directed at that human’s mother—not an insult to him but to his mama.

Now, I don’t know about Canadians; but insofar as Italians, Spaniards, Latin Americans and Filipinos—you, now the people with cojones are concerned, you talka badah ’bout maya Mama and you dead.

Now, neither we nor the pope say that you should be a dead man. We merely say that, as a matter of fact

and not as a value or moral judgment, you will be dead and we ya gonna feelah goodah ’bout it—and so will Mama, God rest her soul.

There is a philosophical distinction made in Harvard between a fact, which is just there, and a value by which you judge the fact. A punch, e.g., is a fact. You can avoid a fact by shutting your mouth. Now a value es otra cosa. Francis did not suggest that violence is a moral response to insult. I myself think it is, but then I am not Canadian.

What Francis said is that, if you provoke a man, by insulting what he most holds dear, which is Mama for us Latins and religion, too, for all serious people, then expect the fact that you gonna get whacked.

Jesus never said that is wrong; He even admitted it is natural.

What He said is that turning the other cheek will be better—but not, I think, very likely.

Indeed, Jesus did not deny that getting whacked will happen as a matter of fact in such circumstances. It was precisely because He provoked Jewish fundamentalists and He worried Roman homeland security that He was whacked even if he was innocent.

But then He had to do it to save all of us, including Canadians.

Christ’s penultimate words were, “Father, forgive them for they know not what they do.” But to Himself He might have said, “Though frankly we really pissed them off. But that’s what it took to get Me on the cross to save mankind from itself.”

Meanwhile, as a result of the March of the United Self-Important, churches are razed and innocent Christians slaughtered by outraged Muslims—all for the fundamental right to go ballistic with a pencil, but with no regard whatsoever for the safety of fellow human beings.

After the terrorist attacks in Paris

By Johan Galtung InterPress Service

K

UAL A LUMPUR—W hat happened in Paris on January 7—known all over the world—is totally unacceptable and inexcusable.

As inexcusable as 9/11, the coming Western attack and the Islamist retaliation, wherever. As inexcusable as the Western coups and megaviolence on Muslim lands since Iran 1953, massacring people as endowed with personality and identity as the French cartoonists.

But to the West they are not even statistics, they are “military secrets.”

However, the unacceptable is not unexplainable.

In this tragic saga of West-Islam violence, the way out is to identify the conflict and search for solutions.

I wonder how many now pontificating on Paris—a city so deep in our hearts—have taken the trouble to sit down with someone identified with al-Qaeda, and simply ask: “What does the world look like where you would like to live?”

I always get the same answer: “A world where Islam is not trampled upon but respected.”

“Trampled upon” sounds physically violent—but there are two types of direct violence intended to harm, to hurt: physical violence with arm-arms—armies; and verbal violence with words, with symbols, with, for example, cartoons.

The naiveté in blaming the secret police for not having uncovered the brothers on time is crying to the heavens. What happened to Charlie Hebdo was as predictable as the reaction to the 2005 cartoon in Jyllands-Posten, whose cultural editor thought he should save Danish media from the self-censorship he had found in Soviet journalists.

But one thing is political criticism of and in the former USSR, quite another is existential stabbing right in the heart of the basis of existence.

Undermine the spiritual existence of others—as Charlie Hebdo did all over the spiritual world—but there may be reactions to that verbal violence. Some of the others deeply hurt by Charlie Hebdo and its cultural autism, sitting in some office and sending poisoned arrows anywhere, may celebrate the atrocity—but inside themselves, not publicly.

The West has one presumably killing argument in favor of verbal

violence for spiritual killing: freedom of expression—a wonderful freedom, deeply appreciated by those who have something to express.

And very easily undermined, not by censorship by self or some other, but by freedom of nonimpression, the freedom not to be impressed: let expression happen, let them talk and write, but do not listen and read, make them nonpersons. Nevertheless, a major achievement of, by and for the West more than elsewhere.

How simple life would be if that freedom were the only norm governing expression! Say or write anything about others as if they were stones, inanimate objects, unimpressed by oral and written expression. But human beings are not.

Of course, the targets of verbal violence can opt for the freedom of nonimpression, shutting themselves off from the perpetrators, neither reading nor listening. Do we really want that, a society now polarized by cartoons—into those who laugh and enjoy, and those who are hurt, suffering deeply?

We do not, and that is why there are others value, other norms, in the land of expression: consideration, decency, respect for life. We have libel

laws asking not only “is it true?” but “is it relevant?” to cut out nastiness in, for example, political “debate”.

We rule out hate speech, propaganda for torture, genocide, war, child pornography. Some people unable to argue about issues insult persons instead; that is why they are often—perhaps not often enough— called to order: stick to the issue!

Many, unable to understand or argue with converts to Islam in France, overstep norms of decency instead.

Islam retaliated, and in Paris overstepped its own rule about doing so mercifully. No Muslim can retaliate with spiritual killing of JudaismChristianity because both are believed to be the “incomplete message.” Bodies were killed in return for spiritual killing instead.

Incidentally, there is somebody else doing the same: the United States, very attentive to critical words as indicative not only of somebody being anti-American, but even a threat to America, to be eliminated.

Could “freedom of expression” also be a tool to lure, smoke them out into the open, make them available for killing by snipers?

How should the Islamic side have handled the issue? The way they

tried, and to some extent managed, in Denmark: through dialogue. They should have invited the Charlies to private and public dialogue, explaining their side of the cartoon issue, appealing to a common core of humanity in us all. There is no argument against humor and satire as such, but there is against verbal violence hitting, hurting, harming others.

The Islamic side should also control better its own recourse to selfdefense by violence: only legitimate if declared by appropriate Muslim authority. That the West fails to do so—just look at the enormities of violence unleashed upon Islam since 1953—is no excuse for Islam to sink down to Western governmental levels, using democracy as a blanket check for war.

The two sides have millions, maybe billions, of common people who can easily agree that the key problem is violence by extremist governments and others. The task is to let such voices come forward with concrete ideas. Like the next Charlie online, hiring a Muslim consultant to draw a border between freedom and inconsideration? This could have saved many lives, in Paris and where the West retaliates.

Laws need to be put in place to keep data miners from ruling our lives

By Frank Pasquale Los Angeles Times/TNS

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HE White House recently announced two major privacy initiatives. A proposed Personal Data Notification and Protection Act would force companies to notify customers about data breaches. A Student Data Privacy Act would, if passed, prevent a growing ed-tech sector from using student data for ads.

These are commendable initiatives. Corporations shouldn’t be able to hide their data-security failures.

Students’ privacy is important, too: They are particularly vulnerable to slick marketing efforts.

But it’s time for policy-makers to aim higher. “Big data” creates problems that go well beyond traditional privacy concerns. For example, colleges are now using data to warn professors about at-risk students.

Some students arrive in the classroom with a “red light” designation—which they don’t know about, and which is based on calculations they can’t access.

A better student privacy act would focus not only on uses of data outside

the education sector, but inside it, as well. Students should not be ranked and rated by mysterious computer formulas. They should know when they’ve been marked for special treatment. Algorithms—step-bystep patterns of computation that can sometimes include thousands of variables—can enormously advance our understanding. But when they are deployed to judge people, those affected need a chance to understand exactly what is going on.

It’s not just students who are affected by big data and the algorithms powered by it. Employers love new evaluative software, too. “Sociometric badges” can now monitor an employee’s every conversation, and combine it with performance data. Cuttingedge human-resources departments are sorting people the same way colleges are: red (poor candidate), yellow (middling) or green (hire away).

Even more worrying, these evaluations may be based on data from well outside the workplace. There are now thousands of scoring services available for businesses to tap into—and very little regulation, transparency or quality control. Use

“inappropriate language” on social media? You may be blackballed at promotion time.

Data-driven decision-making is usually framed as a way of rewarding high performers and shaming shirkers. But it’s not so simple. Most of us don’t know that we’re being profiled, or, if we do, how the profiling works.

We can’t anticipate, for instance, when an apparently innocuous action— such as joining the wrong group on Facebook—will trigger a red flag on some background checker that renders us in effect unemployable. We’ll likely never know what that action was, either, because we aren’t allowed to see our records.

It’s only complaints, investigations and leaks that give us occasional peeks into these black boxes of data mining. But what has emerged is terrifying. Data brokers can use public records—of marriage, divorce, home purchases or voting—to draw inferences about any of us. And they can sell their conclusions to anyone who wants it.

Naturally, just as we’ve lost control of data, a plethora of new services are offering “credit repair” and “reputa-

tion optimization.” But can they really help? Credit-scoring algorithms are secret, so it’s hard to know whether today’s “fix” will be tomorrow’s total fail. And no private company can save us from the thousands of other firms intent on mashing up whatever data is at hand to score and pigeonhole us.

New approaches are needed.

What might those look like? I take some inspiration from a Virginia law that bars auto insurers from requiring their customers to release eventrecorder data from their cars, or from raising their rates if they refuse. That is forward-thinking regulation that is getting ahead of algorithmic monitoring, rather than belatedly reacting to it. Some states have banned employers from demanding their employees’ Facebook passwords. They could go further, requiring employers to share with applicants and current workers the types of outside intelligence they use when making decisions about them.

In general, we need what technology law and policy researcher Meg Leta Jones calls “fair automation practices” to complement the “fair data practices” that President Obama

is proposing. We can’t hope to prevent the collection or creation of inappropriate or inaccurate databases. But we can ensure that the use of that data by employers, insurers and other decision-makers is made clear to us when we are affected by it. Without such notification, we may be stigmatized by secret digital judgments.

Law can prevent the worst uses of data as well. Even if new federal legislation is hard to imagine in an era of federal gridlock, states have the authority to regulate the terms of hiring, employment and insurance. They ought to step in and strictly limit the use of black-box algorithms in those contexts.

We need the right to keep certain intrusive, powerful players— be they our bosses, banks or insurers—from monitoring every aspect of our lives, or basing decisions on unvetted or secret sources. That is reputation protection we can count on. Without it, we’re consigned to a black-box society—one in which we are monitored ever more closely but have no chance of inspecting, challenging or correcting the supposed data that is collected.

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Sunday, January 25, 2015

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Judge nixes Senate subpanel’s request for Lee’s appearance

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By Ashley Manabat | Correspondent

LARK FREEPORT—A judge in the City of San Fernando in Pampanga prevented businessman Delfin Lee from testifying in the Senate BlueRibbon subcommittee hearing on the allegedly overpriced Makati City Building II on Thursday.

Judge Amifaith Fider-Reyes of Branch 42 of the Regional Trial Court in San Fernando said Lee’s testimony in the Senate is sub judice.

Lee was mentioned in Pag-Ibig Fund President Darlene B. Berberabe’s opening statement during the hearing on Thursday, prompt-

ing Antonio Trillanes to subpoena Lee is who facing syndicated estafa charges.

Willy Rivera, Lee’s chief legal counsel, showed Reyes’s January 21 order denying the request of the Senate for Lee’s appearance in Thursday’s hearing.

Rivera, speaking at the media

forum “Balitaan” organized by the Capampangan in Media Inc. in cooperation with the Clark Development Corp. and the Social Security System at the Bale Balita (House of News) here, said the Senate hearing would have been an opportunity for Lee to tell the truth about the Pag-Ibig Fund.

“We are looking for the truth and how Vice President [Jejomar] Binay was handling the Pag-Ibig Fund. If this [Lee’s testimony] would help in determining the truth, my client welcomes it,” Rivera said.

But Reyes won’t budge.

Rivera said Pag-Ibig officials had been allowed to air their views on Lee’s case during past Senate hearings without being warned by Reyes that their actions are subjudice.

“We would like to tell the Senate why my client is being persecuted,” he added.

Lee is currently detained at the

Pampanga Provincial Jail in San Fernando for alleged syndicated estafa.

He has denied any wrongdoing and insisted on his innocence, saying he was a “political detainee.”

Pag-IBIG Fund is headed by Binay being the country’s housing czar.

Several allegations against Binay had been raised in past hearings of the subcommittee, including bid riggings, receiving kickbacks during his term, and using dummies to advance his interest in several companies.

Accusations on alleged ownership of a 350-hectare property in Rosario, Batangas, a log cabin in Tagaytay Highlands and units in several condominiums in Makati City had also been hurled against him.

Binay has repeatedly denied the allegations, saying these were part of an operation to diminish his chances of winning in the 2016 presidential elections.

Residents urged to heighten vigilance against criminals

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AGUPAN CITY—Residents of Barangay Lucao here, near the border of Binmaley town, have been urged to be more vigilant following two shooting incidents on January 20 in which an armed man was killed and three of his companions were arrested by the police.

The call was made by Barangay Chairman Marcelino Fernandez, who is also the president of the Liga ng mga Barangay in Dagupan, as he expressed alarm over the shooting incident in Sitio Tocok, Lucao, at past noon of January 20 and in Sitio Abalosky, also in Lucao, hours later.

The first incident happened when armed men opened fire on a man and his son who were harvesting milkfish.

Rudy Padilla Sr. and son Rudy Jr. were left unhurt as the elder Padilla prevented the gunmen from getting near them by firing back with his own licensed firearm.

This prompted an immediate police response, forcing the gunmen to scamper in various directions.

One of the gunmen was cornered hiding in one house in Sitio Tocok.

Karapatan urges govt: Stop attacks vs people’s lawyers

By Marvyn N. Benaning Correspondent

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HE human-rights watchdog Karapatan has called on the Aquino administration to stop the attacks on people’s lawyers, citing the killing of lawyer Rodolfo Felicio in Rizal on August 24, 2014, as the latest atrocity committed by suspected military agents.

Karapatan issued the call on Friday, January 23, that is celebrated internationally as the “Day of the Endangered Lawyer.”

Felicio had been counsel to farmer in land cases and had participated in many fact-finding missions and searches by humanrights groups.

He was also a member of the prosecution panel in the kidnap, torture and murder case of trade union leader Rolando Olalia and his driver Leonor Alay-ay in 1986.

Olalia himself was lawyer for workers and his abduction and killing was pinned on military officers. “ We at K arapatan A lliance for the Advancement of People’s Rights-Philippines express our full support and solidarity with the peoples’ lawyers in the Philippines in their call to stop the attacks against human-rights lawyers and to render justice to the lawyers who were ruthlessly killed and those who became subjects of attacks because of their work and advocacies as people’s lawyers,” the human-rights watchdog said.

“We laud the tireless efforts of people’s lawyers in the Philippines led by the National Union of Peoples’ Lawyers [NUPL] in bringing to fore the issues concerning the continuing attacks against lawyers, as well as on the rights of the marginalized and oppressed sectors in society,” Karapatan added.

“We thank the European Association of Lawyers for Democracy and World Human Rights [ELDH], the European Democratic Lawyers [AED-EDL], and the European Bar Human Rights Institute [IDHAE], who are working with the NUPL in highlighting the attacks against lawyers in the Philippines in today’s ‘Day of the Endangered Lawyer,’” it added.

Karapatan noted that people’s lawyers have been standing side by side with the poor and oppressed in the Philippines and claimed that it was the very reason they are harassed, surveilled, intimidated and worse, killed.

“Constantly sur veilled and intimidated by the military, lawyer Juvy Magsino, who was then incumbent vice mayor of Naujan, Mindoro Oriental, and acting secretary-general of Karapatan was shot on February 13, 2004, by men from the 204th Infantry Battalion of the Army. Magsino criticized the presence and operations of military troops in the province, which resulted in numerous cases of human-rights violations,” Karapatan said.

“In March 14, 2005, Tacloban City-based lawyer Felidito Dacut, a member of Bayan Muna and legal counsel of Katungod-Eastern Visayas, a local chapter of Karapatan, was killed by an unidentified gunman shortly after he came from a meeting,” it noted.

In 2009 at the height of the campaign calling for the ouster of former President Gloria Macapagal-Arroyo, respected activist and trade union lawyer Remigio Saladero, along with 71 leaders of Karapatan and other people’s organizations from the Southern Tagalog region, were also charged with fabricated crimes meant to harass and silence them.

Time to play Children enjoy the slides at the Children’s Park in Roxas, Isabela. As part of its commitment to be a child-friendly town, the local government has established a playground complete with amenities for children. LEONARDO PERANTE II

Saladero was arrested and was held at the Calapan City Provincial Jail for three months.

Karapatan said he was only released after the strong campaign at the national and international levels was launched and the court hearing their case eventually threw out the

charges for lack of evidence.

“Lawyer Catherine Salucon was also harassed and surveilled by the military for her involvement in human-rights cases. Salucon recently sought for protection through a petition for the writ of amparo filed before the Supreme Court. Her

paralegal, William Bugatti who is also a coordinator of Karapatan, was gunned down by state security forces on March 25, 2014, after he and Attorney Salucon attended a court hearing on cases against political prisoners,” the human-rights watchdog claimed.

Seminar focuses on quality of life, empowering families

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ALAUAN, Laguna—The Consuelo FoundationPhilippine Women University (CF-PWU) Institute of Family Life and Children Studies (IFLCS) has conducted a two-day Seminar Workshop to promote gender equality, reproductive health and responsible parenting in this province.

The seminar workshop was held on January 22 and 23 at Dewi’s Organic Farm and Resort in Pila, Laguna. It focused on improving the quality of family

life and empowering families.

Participants who came from the Calauan Resettlement Project at Southville 7, Barangay Dayap, are members of relocated families who were victims of Typhoon Ondoy and former squatters in Pasig and Pasay cities.

The project manager of CFPWU IFLCS, Glenda Relova, said that her group is trying to address the problems of the village.

“Since they are relocated from

an informal settlement to a new site, they carry the concept of the style of living from where they came from. They have a problem in social preparation causing high incidents of abuse specially on women and children,” Relova said.

CF-PWU IFLCS aspire to create a structure group through building a pool of trainers to propagate information through the grassroots.

“This is the first batch of participants and we have 15

youth and 15 community leaders who learned from this workshop,” Relova said. “Information is ver y effective to resolve their problem by themselves and if the community is aware, especially the children, they will be more confident to report cases of abuse.”

Assistant Secretary Catherine Jonne T. Licudine-Dalen, of the Presidential Communications and Operations Office was the resource speaker.

She discussed in the workshop equality of the genders with the primary view that men and women should receive equal treatment, and should not be discriminated based on gender, including the merits of Republic Act 9710, or the Magna Carta for Women.

In the ensuing open forum, Dalen and News and Information Bureau Director Danilo S. Jamora discussed and answered queries from the participants. PNA

In a follow up operation at past 8:00 p.m., the police killed a gunman who opened fire on them while they were closing in on the group’s safe house in sitio Abalosky, where two other suspects were arrested.

The barangay chairman was surprised to learn that the suspects were armed with powerful firearms, including M-16 rifles, a caliber .45 pistol and a 9mm pistol.

Police said the gunmen had a large stockpile of ammunition.

Fernandez admitted that two of the suspects, including the fatality, are from his barangay.

The police have filed cases of attempted murder and illegal possession of firearms against the arrested suspects.

In view of the incident, Fernandez called on his constituents to be more vigilant and immediately report strangers acting suspiciously to barangay officials or the police.

As a result of the incident, the Dagupan police led by its chief, Supt. Christopher Abrahano, has strengthened its checkpoints to prevent the entry of criminals. PNA

Baguio City preparing for February events

B

AGUIO CITY—Baguio City Mayor Mauricio Domogan gave emphasis on the support, participation and cooperation needed from the different sectors in Baguio City and those of the towns around the city in the recently concluded Transportation and Traffic Management Summit.

In an interview, Domogan said a technical working group was created to oversee proposals to solve the traffic tangles, or at least minimize such occurrences during long weekends or big events.

The opening parade of the 20th Panagbenga Festival on February 1 will serve as a test for the suggestions.

Domogan suggested that Kennon Road be used as a one-way traffic road either to or from the city.

The Palispis-Aspiras Highway (Marcos Highway) and Quirino Highway (Naguillian Road) will remain as two-way traffic roads.

He said the influx of vehicles to Baguio City during the holidays and the Papal visit were unexpected and that occurrence should not happen again.

Alternate routes to the tourist spots-Mines View Park, Philippine Military Academy, John Hay, Baguio Country Club, Mansion House, Lourdes Grotto, Dominican Hill and the newest attraction, sitio Pungayan (Sitio La Presa) in Mount Santo Tomas—should be looked into, Domogan said. The mayor also emphasized the need for volunteers to direct traffic during long weekends, and big events as well as emergencies.

Suggestions for the Baguio-La Trinidad-Itogon-Sablan-Tuba and Tublay expansion through the circumferential road outer ring could help solve traffic, Domogan said.

The heavy traffic in December 2014 may be attributed to the long weekend-vacation, fuel-price rollback, opened Tarlac-PangasinanLa Union Expressway, lifting of the number coding, parking spaces and undisciplined motorists and pedestrians.

The summit was in preparation for visitors coming up during long weekends next month—the Baguio Flower Festival opening parade on February 1; Handog ng Panagbenga, kite-flying, variety show and fireworks display on the third Sunday, Chinese Spring Festival on February 19; the Philippine Military Academy homecoming from February 20 to 22; Panagbenga street dancing and float parade on February 28 and March 1; and Pony boys’ day and closing ceremonies on March 7 and 8. PNA

NewsSunday

A6 Sunday, January 25, 2015 • Editor: Vittorio V. Vitug

BusinessMirror

Crime wave prompts legislator to seek reorganization, modernization of NBI

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By Jovee Marie N. dela Cruz

O arrest the crime wave that continues to escalate and grip the country, a lawmaker recently filed a bill seeking the reorganization and the modernization of the National Bureau of Investigation (NBI).

House Bill (HB) 5304, or the National Bureau of Investigation Reorganization and Modernization Act, filed by Nationalist People’s Coalition Rep. Erico Aristotle C. Aumentado of Bohol, seeks to provide the agency the much-needed capability to successfully address the “hightech” level at which criminals pursue their trade.

Under the bill, the NBI is mandated to implement a modernization program geared toward the acquisition of state-of-the-art investigative and intelligence equipment, and the establishment of forensic and scientific laboratories. The bill provides for the training of personnel.

Likewise, the bill mandates that the investigative and noninvestigative staff of the NBI be increased

and their positions upgraded to adequately meet the increasing demands of an expanded investigative and detective work.

The NBI shall establish a regional office in every region and a suboffice in every province, to be headed by a regional director and a head agent, respectively.

Likewise, field offices in congressional districts shall be established and maintained, the measure provides.

It also mandates that the present organizational structure of the NBI shall be reorganized into the Office of the Director, Office of the Deputy Director for Administration and Office of the Deputy Director for Operations, Office of the Assistant Directors for Investigation Service, for

Intelligence Service, for Comptroller Service, for Internal Audit Service, for Forensic and Scientific Research Services, for Legal Services and for Information and Communications Technology Service. Each of the services shall be composed of divisions and sections.

The bill said that funds required for the implementation of the proposed act, including employee benefits, shall be taken from: All collections from NBI clearance and certified fees; All service incomes from training, DNA, drug tests, confirmatory and neuro tests and the like; seizures; Other miscel laneous incomes; and Appropriations by Congress, as maybe necessary.

In filing the bill, Aumentado said that it is the policy of the state to promote and maintain a modern, competent and highly trained investigative body, functionally integrated and national in scope.

“Law enforcement does not seem able nor capable to deliver and respond fast enough or good enough,” the author said.

He recalled that a version of this bill was adopted by both the Senate and the House during the previous Congress, but was, unfortunately, overtaken by the adjournment without the bicameral conference

action being ratified.

“It is difficult to imagine how law enforcement can truly be efficient and effective if its growth and expansion are stifled by age-old organizational system and procedures and chained by too much financial restriction,” he added.

The Committee on Justice, to which the Aumentado bill has been referred to, is also in receipt earlier of a similar bill, HB 4556, filed by Liberal Party Rep. Ann K. Hofer of Zamboanga Sibugay.

“Reorganization, modernization and expansion of the National Bureau of Investigation are long overdue,” Aumentado added.

The NBI—the equivalent of the Federal Bureau of Investigation in the United States—“is passionately eager to face the challenges of the present and the approaching millennium, but it needs to be adequately equipped in terms of developed human resources, stateof-the-art equipment and facilities, and necessary logistics for mobilization,” he added.

The lawmaker said the latest killings of members of the media, judges, elective officials and other government officials have caught the attention of international organizations and those concerned sectors of the country on the government’s inability to solve crimes.

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Palace confirms receiving ‘raw’ info on plot to kill pope in PHL

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alacañanG has confirmed receiving unverified information about the assassination attempt on Pope Francis when he was in a five-day visit to the Philippines last week.

“We were able to speak to those in the security establishments on that, and I was told that they were aware of that particular piece of unverified information that was passed on,” Palace Deputy Spokesman Abigail Valte said in a radio interview on Saturday.

“Aware po sila, although they did make it a point to establish that the information had no details and was unverified, but because of the situation, it was passed on anyway,” Valte told dzRB Radyo Ng Bayan.

The report was classified as a “raw” information that was passed on and that was received,

without much details, she added.

The country’s security establishments exercise prudence and authorities look into those things and they take it into account, the Palace official said. Asked whether the measure to turn off cell-phone signals was related to the threat, Valte said the decision to turn off the signals was made even prior to the reception of the raw and unverified information.

A former military intelligence officer claimed there were two attempts to assassinate the pope during his visit in the Philippines —one in Manila and another in Tacloban, Leyte.

A few months ago, the Iraqi government warned that the Islamic State, which has been sowing terrorism in the Middle East, wanted the pope killed, and that the threats against Francis are credible. PNA

Garlic gross receipts surged 203.43% in 2014–BAS report

By Catherine J. Teves Philippines News Agency

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arlic registered the highest value of production growth among crops in the country last year, soaring 203.43 percent from its 2013 level.

“Among crops that recovered from negative growth last year, garlic posted the biggest gain in gross receipts,” noted the Bureau of Agricultural Statistics (BAS).

The BAS cited higher output and price of garlic as factors that drove such growth. BAS data released this week showed garlic’s 2014 value of

production reached nearly P946 million at current prices, exceeding the P311.59-million gross receipts from this crop in 2013.

Garlic’s lackluster performance in 2013 led to a 61.12-percent drop in its growth that year, from the crop’s P801.50-million value of output in 2012, BAS data also showed.

Growth of garlic in 2014 contributed to the Philippine crops subsector’s P933.7 billion gross value of production last year, noted the BAS. The BAS further reported garlic's volume of production last year rose 0.89 percent to some 9,000 metric tons from its 2013 level.

Zamboanga City blast kills 2, wounds 54

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powerful explosion killed at least two people and wounded 54 others in a southern Philippine port city that has been hit by similar blasts blamed on Muslim militants, the police said on Saturday.

The blast occurred at a bar across the street from a busy bus terminal in Zamboanga City, damaged nearby establishments and hitting the victims with flying glass and debris. One officer was among the wounded, the police said.

The Police suspected the militant Abu Sayyaf Group, which operates in Zamboanga and nearby provinces, saying the attack could have been in retaliation for the foiled prison escape of a brother of one of the group’s leaders.

Earlier this week, army special forces killed at least three Abu Sayyaf gunmen in running

gunbattles and have continued to pursue the militants in nearby Basilan province. The group has previously set off bombs to divert attention from military operations.

Regional police chief Edwin Basbas said investigators were looking for three men who were seen in the vicinity shortly before the blast.

Zamboanga Police Information Officer Alex Mabalot said the blast killed a motorcycle taxi driver and another man who succumbed to his wounds. Only 10 people remained in hospitals, he said.

The bar and the bus terminal had been separately hit several years ago by bomb blasts blamed on the Abu Sayyaf. At least two suspected militants were arrested in another bomb attack near a police station last month, he said. AP

Power of recycling Sen. Cynthia Villar (center) poses for a souvenir photo with school officials and students, following the turnover ceremony of school chairs made from recycled plastic waste to the Upper Bicutan National High School in Taguig City. The school chairs were manufactured by Las Piñas Waste Plastics Recycling Factory as part of the senator’s livelihood program. With Villar are (from left) Joseph Alar, president of the Faculty and Employees Club; Roldan Jamindang of the General Parents-Teachers Association; Gina R. Poblete, school principal of the Mataas na Paaralan ng Upper Bicutan; and Dr. Danilo Gutierrez, school division superintendent. Roy Domingo

Red Cross deploys field hospital during papal visit

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65-YEAR-OLD woman, whose identity was withheld for patient confidentiality reasons, was among those waiting for the pope’s convoy at the area of Roxas Boulevard corner United Nations Avenue on January 18.

But by 12:40 p.m., she was no longer part of the estimated 6 million people who were present in and around the Quirino Grandstand, where Pope Francis celebrated Mass.

The woman, who reportedly lost consciousness, had a negative pulse (pulseless) when medics took her from Metropolitan Manila Development Authority personnel, who first responded to her. The medic team who responded to the incident reported that the patient was pale, unresponsive and has negative initial blood pressure when they were checking her vital signs inside the ambulance.

The attending medic immediately performed chest compression and reported that, after less than 15 compressions, the patient opened her eyes and was already conscious upon arrival at the emergency field hospital (EFH) at the Cultural Center of the Philippines Complex, where she was monitored until her condition stabilized.

The EFH at CCP

THE case of the woman who was revived en route to the field hospital was just one

of the many cases received and attended to by Philippine Red Cross (PRC) personnel and volunteers at the EFH at CCP during the five-day visit of Pope Francis to the country. Those who were brought in at the EFH had abrasions, experienced difficulty of breathing (DOB), dizziness and hypertension. The majority of the patients were elderly, who complained of DOB and signs of elevated blood pressure.

The PRC’s Operation Center (OpCen) reported a total of 80 patients, who were brought in at EFHs that were set up by the PRC. The EFH at the CCP Urban Forest was the main field hospital unit that was established by the PRC for the papal visit.

Aside from this, five other EFHs were put up at the following locations: Clam Shell in Intramuros, Manila Bulletin on Recolletos Street, Palacio de Manila in Malate, Le Pavilion in Pasay and at the Philippine General Hospital.

The field hospital was equipped with medicines and medical supplies, base and portable radios, mass casualty incident (MCI) kit, cadaver bags, AED, an ER setup with oxygen, pulse oximeter, ECG machines and a standby ambulance. It also has an xray machine, water bladder with tap stand, water tanker, drinking station, tents for transit accommodation for staff, portalets

and a hot-meal vehicle.

Field hospital staff were responsible for the recording and documentation of all data of first aid and health stations, communication and linking with PRC OpCen and other medical stations; coordination with hospital blood bank; providing transit accommodation for health personnel (with provision of water, sanitation, electricity); and emergency response staging area (ambulance, motorbike and fire truck).

The EFH also took care of the mobilization and deployment of volunteer doctors and nurses, as well as coordination with hospitals and other medical teams in the field operation.

About the EFH

EMERGENCY field hospitals attend to patients who have been transported from first aid and health stations who needed treatment of major injuries and illnesses prior to transport to hospitals for advanced medical treatment, as may be required by the patient’s condition. A team of doctors and nurses attend to, and monitor, all patients from first aid and health stations, stabilize patients for intubation, trauma, initial management of fracture, suturing, administering of IV fluids and medicines, and referral of patients to higher level of care.

2nd Front Page BusinessMirror

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Sunday, January 25, 2015

DOTC awards ITS Southwest Terminal deal to Megawide; construction seen to start in Q4

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By Lorenz S. Marasigan

ONSTRUCTION of the P2.5billion intermodal terminal southwest of Metro Manila should start early in the fourth quarter of the year after the government awarded late Friday the contract to the consortium led by Megawide Construction Corp.

Transportation Spokesman Michael Arthur C. Sagcal said the Department of Transportation and Communications had issued the notice of award late Friday, after a quick but thorough review of the MWM Terminals’s bid, which carried a request for P100-million annual subsidy all throughout the 35-year concession period.

“MWM Terminals has now

until February 12 to complete post-award requirements. We are aiming to sign the concession agreement by the fourth week of February,” he told reporters via text message on Friday evening.

So far, the P2.5-billion Integrated Transport System (ITS) Southwest Terminal is the first public-private partnership (PPP) contract that the government has

awarded this year.

“The proponent will have eight months from then to begin construction, and another 18 months— or until the end of April 2017—to start operations,” Sagcal said.

The consortium is led by Megawide, a mainstay in the PPP arena, and Walter Mart Property Management Inc. of billionaire and retail magnate Henry Sy.

The group’s bid was declared superior over its only competitor’s offer. Filinvest Land Inc. sought for a higher P650-million annual subsidy.

This is the second key infrastructure contract in which Megawide and Filinvest clashed. The first one being the P17.5-billion Mactan-Cebu International Airport, a deal whose awarding was delayed because of legal hurdles.

Megawide won the battle for the airport construction contract.

The multibillion-peso transport-terminal contract, meanwhile, provides for the construction of an intermodal terminal near the Manila-Cavite Expressway to connect passengers coming from Cavite to urban-transport

systems in Metro Manila.

It will include a passengerterminal building, arrival and departure bays, public-information systems, ticketing and baggagehandling facilities and park-ride facilities.

The government has awarded eight contracts since the infrastructure program’s inception in 2010.

It aims to sign at least 15 contracts by the time President Aquino steps down from office in 2016.

Megawide has cemented its image as a mainstay in the government’s flagship infrastructure program, bagging a number of PPP projects, including the P16.42billion PPP for School Infrastructure Project (PSIP) Phase 1; two of the five contracts under the P8.8billion PSIP Phase 2; and the P5.7billion deal for the construction, operation and maintenance of the Philippine Orthopedic Center.

The state intends to plug the gap in the country’s transportation infrastructure in the next decade by rolling out massive infrastructure projects that are seen to spur economic growth.

BAP bares merger of Bancnet, Megalink

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UTOMATED teller machine (ATM) networks BancNet Inc. and Megalink have formally merged, with the former as the surviving entity.

Bankers’ Association of the Philippines (BAP) President Lorenzo V. Tan said BAP, BancNet Inc. and Megalink have already signed the agreement that was submitted to Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. on Friday night.

“It was signed already. It’s finally signed. It’s just an agreement to join the two networks. BancNet will survive.

We haven’t decided what to name it.

We will come up with a common name,” Tan told the BusinessMirror.

The banking community is finally moving on a single switch, after about two decades of talks about the consolidation.

“This is a milestone that we’ve been looking forward to. The way to the greater goal of establishing a national retail-payment system that will achieve interoperability, efficiency, security and inclusiveness in the way we set up financial transactions. The BSP is pleased that banking community is fully engaged with us in the implementation of prudent and systematic banking reforms,” Tetangco said in a speech.

He congratulated the banking sector for its “job well done last year.”

He said Philippine banking system is sound, profitable and stable and responsive to the needs of the economy.

The banking sector is also responsible in managing the funds entrusted to them by customers and were increasingly financially inclusive.

Tetangco cited the banking sectors contributions, such as the growing number of deposit account starting with children, the greater use of electronic money, the expanding of size of microfinance portfolio and the wider coverage of ATMs. G. Factao

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Party-list lawmakers seek probe of DSWD for ‘hiding’ street children during pope’s visit

By Jovee Marie N. dela Cruz

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WO party-list lawmakers on Saturday urged the investigation of the Department of Social Welfare and Development (DSWD) for “hiding” street children during the recent five-day visit of Pope Francis in the country.

Party-list Rep. Emmi de Jesus of Gabriela said the Commission on Audit (COA) should conduct a special audit on the fund used by the department, while Party-list Rep. Lito Atienza of Buhay wants the House of Representatives to investigate the matter.

Citing a Time magazine report, de Jesus said Social Welfare Secretary Corazon T. Soliman was quoted as saying that about 100 homeless families were, indeed, removed from Roxas Boulevard and taken to the posh Chateau Royal in Batangas under the DSWD’s Modified Conditional Cash-Transfer (CCT) Program.

She said the COA should look into conflicting pronouncements from DSWD officials concerning the way they budgeted and spent budget items for the so-called Modified CCT.

“The DSWD could have done ‘assessments’ on site, why the need for costly accommodation? It’s really hard for taxpayers not to suspect the real reason was to hide the poor out of sight of the pope, especially considering that the pope went to the Philippines to meet the poor,” de Jesus added.

The lawmaker said the COA should make a special audit of the CCT and submit to Congress its findings.

De Jesus cited media reports that Chateau Royale resort in Nasugbu, Batangas, where around seven busloads of homeless enjoyed swimming pool and rockclimbing facilities for four days during the papal entourage, charge up to P24,000 ($544) a day.

She also said the DSWD should

come clean on the complaints from urban-poor groups that the DSWD not only uses CCT for street sweeps during the visits of the pope, US President Barack Obama and other dignitaries, but also to discourage membership in antisquatter-colony demolition organizations.

De Jesus expressed fears that the CCT beneficiaries can again be deployed when foreign delegates visit in November for the Asia-Pacific Economic Cooperation meetings.

House investigation

Atienza backed the call for Soliman to face a congressional probe as soon as possible to explain the case of the maltreatment of the street children of Manila.

“I support the call for a congressional probe into this very serious matter, as I myself am calling for one. Secretary Soliman should explain why she committed such an affront to the dignity of these street children and homeless people, who were reportedly whisked away from the streets of Manila to a resort in Batangas,” Atienza said, referring to the sudden disappearance of beggars and street kids during the visit of Francis.

“The problem of extreme poverty, as evidenced by the beggars and street children, is a very real problem that needs to be addressed. This problem should not be swept under the rug. Hiding them does not solve the problem of vagrancy. Now that the pope has left, they are back on the streets, fending for themselves,” he said.

In a news report, Palace Deputy Spokesman Abigail Valte said the DSWD program was meant to “assess” street children and homeless families for the government’s CCT.

She added that the DSWD action was also meant to keep street children safe from the areas that filled with people during the papal visit, from January 15 to 19.

French president set to visit Manila

By Recto Mercene

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RENCH President François Hollande is set to visit Manila for two days in late February in return for the visit of President Aquino to Paris in September last year.

Mr. Aquino visited Paris during a four-country European swing that included Spain, Belgium and Germany.

The visit was announced by Nicolas Hulot, special envoy of Hollande, during a news conference at the French ambassador’s residence in Forbes Park, Makati City.

“This is the first visit of a French president since the inauguration of the Philippine independence,” said Hulot, a reporter, writer and television-program maker. He had made three documentaries on the Philippines.

He said that “the two presidents agreed to focus on climate change as one of the objectives of the visit.”

“This visit will be doubly historic,” Hulot said, adding that a French president is not only coming to visit after a long hiatus, but also to discuss the role of France as host of a conference on climate change on December 12 in Paris.

Hollande, as president of the Conference of the Parties, consisting of 195 countries, will act as an impartial facilitator in carrying out constructive negotiations among governments, said Hulot, who was appointed special envoy for the protection of the planet.

“In our experience, climate conference’s success is determined well before the conference opened, and the influence of head of states is essential.”

“I believe that the two presidents can send a common message, as a symbol or spark to mobilize will and reason,” Hulot added.

The Philippines, he said, is in a

position to convey the effects of climate change among the 195 participants in Paris, because of the “terrible tragedy and consequences of Supertyphoon Yolanda [international code name Haiyan] in 2013.”

He said the conference will set a limit of 2 degrees Celsius as a maximum limit in global temperature, a boundary set by scientists during an intergovernmental panel of the International Conference on Climate Change.

“If we don’t succeed [to limit global warming], this phenomenon of increased temperature will be irreversible and will continue to increase.”

He said the 2°C cap is the only target within range, but still will not be without consequences, especially to vulnerable countries like the Philippines and South Africa.

“In my trips around the world, I have discovered that climate change caused the death of hundreds of millions every year as a consequence of climate change,” said Hulot, author of several books, including How Many Catastrophes Before Taking Action?

In reply to skeptics who do not believe in global warming, Hulot pointed out that in 1980, the cost of damage to the world economy owing to climate change brought about by global warming was $2 billion in 1980, $14 billion in 2000 and $200 billion in 2012.

“This is a clear trend that climate-change proponents were not able to convey because of lack of funds,” Hulot said.

He said the $100 billion needed for proponents of climate change has not been met because donors failed to honor their commitments.

The Paris conference would attempt to clarify the financing mechanisms that highly industrialized countries will put in place, he said.