Businessmirror july 05, 2015

Biodiversity »B2-3

Participants in a two-day training on sustainable fisheries, held in Boracay from June 25 to 27, pose for a souvenir photo with clam and fish mascots.

According to Rare, an international nature-conservation organization, with around 41 percent of coastal fishermen still living beyond the poverty line—way above the 26.5-percent poverty incidence in the Philippines— the need to address the problem besetting the fisheries sector through a different kind of approach becomes even more pressing.

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

U.N. Media Award 2008

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A broader look at today’s business

n Sunday, July 5, 2015 Vol. 10 No. 269

Banking in PHL still inconvenient–survey

By Bianca Cuaresma

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ESPITE 10,456 bank branches nationwide and still increasing, the average Filipino will still have to travel for about half an hour and spend an average cost of P52 to access the nearest bank in his locality, the Bangko Sentral reported.

Just last week, the central bank formally announced the results of the National Baseline Survey on Financial Inclusion (NBSFI)—the maiden survey to measure the financial penetration of the system into the Filipino citizenry.

“The results tell us that there is really a need to scale

up the provision of financial services in the country. The results tell us that there is a need to improve access to as many people as possible,” Bangko Sentral Gov. Amando M. Tetangco Jr. said.

One of the salient points in the nationwide survey was the overall access of Filipinos

to banks, automated teller machines (ATMs) and other access points.

The survey results showed that going to a nearest bank is relatively more time-consuming and expensive than going to other access points—such as payment centers, money changers and remittance agents—as these alternative access points outnumber bank branches in the country.

In particular, the average length of time to reach the nearest bank in the Philippines, according to the survey, is 26 minutes, and a roundtrip would cost P52.

Meanwhile, the survey also showed that the average length of time to reach the nearest ATM in the Philippines is 22 minutes, and a two-way trip would cost P47.

This is a bit more expensive and more time-consuming, that if a financial consumer goes to an alternative See “Banking,” A2

‘Philippines must prepare for influx of foreign retirees’

By Roderick L. Abad

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HE Philippines should prepare now for the expected surge of foreign retirees in the country, as the global population is seen to explode in the next 15 years.

Jones Lang Lasalle (JLL) Regional Director Lindsay Orr said that the number of older people in less-developed countries is projected to increase by 140 percent by 2030, as those in more-developed nations will

rise by 51 percent.

Orr said it will open up more growth chances not only for the local retirement industry, but also for the real-estate sector.

“If you look at the areas that would need to evolve and develop—health care, financial planning and retirement communities—in the middle of it all are the opportunities that will open up in the particular [retiring] marketplace [which are] quite significant. And, I think, it’s certainly a very upcoming sector that will be going to have an impact on the overall real-estate market here in the

PESO exchange rates n US 45.1630

Philippines,” he stressed.

Seeing this trend, JLL International Director David T. Leechiu encourages both the government and the private sector to make the country’s infrastructure ready as early as five to 10 years from today.

“So we have to prepare by establishing these masterplanned communities that will not only cater to mallgoers [or] resortgoers, but also to the retirement market,” he said.

Data from JLL as of July 2013 reveal that Asia is the region with the highest number of people aged 65 and up at 304 See “Retirees,” A2

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Papal visit puts Andes presidents’ ecology record under scrutiny

week ahead

ECONOMIC DATA PREVIEW

n Previous week: The local currency continued to trade within the 45 territory in the previous week, largely on the suasion of international events—such as the crisis and eventual default of the Greek economy, which rocked markets globally. The peso started the week at 45.19 to a dollar. The peso then appreciated back to 45.09 to a dollar on Tuesday, and reverted back to 45.11 against the greenback on Wednesday. The peso then hit 45.155 on Thursday, and ended the week with a strong note on Friday at 45.02. The total traded volume is at $2.34 billion, and the average trading value of the peso for the week is at 45.113 to a dollar.

n Week ahead: After the Greek drama, markets have now settled and, as such, traders in the Philppines’s foreign-exchange platform are looking to focus on the economic data within the country in next week’s trade. The most salient economic release for the week will be the June inflation rate.

Inflation (June)

Tuesday, July 7

n May inflation: The Philippine Statistics Authority announced last month that inflation hit a 20-year low at 1.6 percent. “The May inflation rate falls within our inflation forecast for the month, albeit at the low end of the target range of 1.6 percent to 2.4 percent. Inflation expectations continue to be well-anchored, and growth is still sound [solid],” Bangko Sentral Gov. Amando M. Tetancgo Jr. said earlier. “We nevertheless remain watchful of developments, particularly in oil-price movements, as these

See “Outlook,” A2

Guarani Indian men listen to a leader, as they hold a meeting in the southeastern Bolivian village of Iviyeca near a natural-gas field by French-run Total E&P Bolivie. AP/Juan Karita

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GUARAGüE NATIONAL PARK, Bolivia—In the vine-entangled forests of the Aguaragüe National Park, crude that seeped for decades out of abandoned wellheads saturates the soil and has stained the bedrock of creeks that provide water to the indigenous Guarani who live nearby.

The petroleum stench is overpowering, as David Benitez, who lives in the park and grazes his cattle among the wells, sifts tainted soil between his fingers.

“The odor is much stronger in the summer, when there’s no water to wash the oil downstream,” the 47-year-old farmer says.

Pope Francis is expected to raise concerns about the environmental costs of development next week, when he meets with Bolivian President Evo Morales and his counterpart in Ecuador, Rafael Correa, on the first two stops of a three-country tour.

Francis’s weeklong trip follows his landmark encyclical demanding dramatic measures to halt climate change and ensure future generations aren’t living in “debris, desolation and filth.”

The Guarani for years have fought to protect their native lands in and around this narrow 70-mile-long park in the southeastern Chaco region that flanks Bolivia’s richest natural-gas fields.

Francis has called on governments to better engage such indigenous peoples, calling them nature’s best caretakers, because the land, for them, is sacred.

Respecting native peoples, working to alleviate the poverty and living less wasteful lives are part of Francis’s calls to action. But his critics say such prescriptions are unrealistic for developing economies, like those of Ecuador and Bolivia that rely on mining and oil and gas extraction.

Morales, an environmental hero to many for demanding rich nations See “Papal Visit,” A2

n japan 0.3669 n UK 70.4949 n HK 5.8270 n CHINA 7.2786 n singapore 33.5087 n australia 34.4782 n EU 50.0677 n SAUDI arabia 12.0435 Source: BSP (3 July 2015)

NewsSunday BusinessMirror

A2 Sunday, July 5, 2015

Papal visit...

continued from A1

do more to halt global warming, is assailed by conservationists at home who say he puts extraction ahead of clean water and forests.

After taking office in 2006, Morales renegotiated contracts to give Bolivia a bigger share of natural-gas revenues, which account for half its exports, helping him cut the poverty rate nearly in half.

But with demand outpacing production, Morales has pushed to expand oil and gas drilling. A decree issued in May would permit drilling in all 22 of Bolivia’s “protected” wilderness areas, despite objections from indigenous communities.

Lacking major industries, Bolivia has no other option, he argues.

“If we don’t drill for gas, what will Bolivia live off?” he told state oil workers last year.

The Guarani, the nation’s third-largest indigenous group, believe the drilling only will make

Outlook... continued from A1

have knock-on effects on domestic pump prices, transport and other utilities and consumption, in general, as well as the impact of a possibly prolonged El Niño on the food-supply chain,” he added.

n June inflation: Tetangco said that inflation could hit as low as 1.1 percent in June, beating the record-low inflation rate in May at 1.6 percent. Tetangco’s forecast range for the month is within 1.1 percent to 2 percent for June 2015, as announced to reporters on Friday. “Lower diesel, kerosene, LPG [liquefied petroleum gas] prices and decline in Meralco [Manila Electric Co.] electricity rates provide downside inflation pressures for the month,” Tetangco said in a text message.

them poorer. Aguarague park is the sole water source for the roughly 150,000 people in Bolivia’s hottest, driest region.

They point to the legacy of drilling by the state-owned YPFB oil company along the narrow ridge on which the park sits.

Oil began oozing from wellheads in the 1980s after drilling ended, but nothing was done until 2010, when Guarani protests spurred the government to promise a cleanup. Even so, the work didn’t begin in earnest until this year, and the job is not done. Tons of petroleum-soaked soil need to be hauled away. Wells remain unsealed.

Officials defending the steppedup extraction say new technology will keep production clean. But the Guarani are skeptical. Environmental protection is weak in Bolivia.

Highlands mines dump toxic tailings into rivers unhindered, while

Banking...

fines have been set so low that polluters would rather pay than clean up, environmentalist say.

Bolivia’s environment and energy ministries did not respond to Associated Press requests via e-mail and phone calls for current data on polluters and fines levied. It’s not known, for example, whether a fine was ever levied against the operator of a gas pipeline across Aguarague after a 2006 spill into the Pilcomayo River.

“There’s no information. No one knows,” said Marco Ribera, a biologist with the Environmental Defense League, or Lidema

Benitez said there’s also less wildlife in the park, which was established as a natural reserve in 2000 and is habitat for jaguar, foxes and anteaters. With few rangers patrolling the area, there’s little to stop illegal logging and hunting.

As for working with local natives, as Pope Francis has urged, that’s not happening, according to Celso Padilla, a top leader of the Guarani, who are nominal co-ad-

ministrators of Aguarague park.

“We’re in an emergency,” he said. “The government is doing away with Mother Earth.”

Pope Francis will have an opportunity to hear that message directly in the nearby city of Santa Cruz during his tour, which takes him first to Ecuador and later to Paraguay.

The Argentine pontiff is wellversed in regional environmental issues and will raise them in private with both Morales and Correa, said Peruvian Archbishop Pedro Barreto, who coordinates a Roman Catholic Church network launched last year to fight deforestation and contamination in the pan-Amazon region.

Barreto said the pope would give each a copy of his encyclical, which accuses politicians of listening more to the oil industry than Scripture, common sense or the cries of the poor.

Both Morales and Correa have moved recently to restrict environmental groups. AP

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financial access point—at 21 minutes and an average roundtrip fare of P43.

The recent survey shows that, while banks and ATMs are within easy reach in highly urbanized areas, the lack of ample bank infrastructure in rural areas offset this, thus resulting in the numbers in the survey.

Moreover, the survey found out that only three out of 10 Filipino savers put their savings in the bank, while the other seven opt to put their money at home, thinking that it would be safer and more convenient.

As such, the central bank, along with 13 other national agen-

cies, signed a memorandum of agreement at the Philippine International Convention Center at the formal launch of the National Strategy for Financial Inclusion (NSFI) last week.

Tetangco said the NSFI will be a public document that will serve as a road map for the country to promote inclusive growth, encourage shared and coordinated government efforts to avoid overlaps and bring the efforts to the masses more efficiently.

The launch of the road map to financial inclusion was witnessed and lauded by Her Majesty Queen Maxima of the Netherlands, who is also currently serving as the

United Nations secretary-general’s special advocate for inclusive finance for development.

The Queen of the Netherlands, who was present at the event as the keynote speaker, said the launching and signing of the NSFI is “one step in the right direction” and will provide a “huge room for improvement” in the overall financial access in the country.

The road map, she added, will provide help to people who are recently out of poverty and prevent them from falling back into poverty again should a certain financial shock come such as drought, floods or death of a family member among others.

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Retirees...

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million, with China comprising 39 percent or 120 million.

At present, Japan has the highest average of age at 45, followed by Hong Kong, 43; Germany, 40; Singapore, 40; South Korea, 39; the United Kingdom, 37; China, 36; the United States, 35; Thailand, 34; United Arab Emirates, 30.2; Indonesia, 28; India, 26; and the Philippines, 23.

Apart from having the youngest population in the group, the latter’s advantage from others, especially to its neighbors in the region, is that it is the third nation with the lowest cost of living within Southeast Asia, next only to Thailand and Malaysia.

In addition, its Special Resident Retiree’s Visa allows members to retire and live here for as long as they want.

As of 2013, 30 percent of the Philippine retirement-visa enrollees are Chinese, followed by the Koreans at 22 percent; Taiwanese, 13 percent; Japanese, 9 percent; Americans, 5 percent; British and Indians, 3 percent.

“Depending on your age, you deposit a certain amount of money with the Philippine Retirement Authority [PRA], have it held in their bank for about six months, and then you can take it out. For as long as you’re invested in the country, it doesn’t have to stay in a PRA-nominated bank, [but you can also invest it in] a condominium or a house or whatever you want,” Orr said.

Being included in Forbes magazine’s “20 Best Foreign Retirement Havens for 2015,” this island-nation offers various top retirement destinations, such as Baguio, Cebu, Clark, Davao, Dumaguete, Subic and Tagaytay. Makati City is the first choice for alien retirees in Metro Manila.

While the entire Filipino busi-

ness community has been already seeing and discussing the potential of the retirement industry in the near future, Leechiu cited that it still has not taken off because the global market remains very small at present.

It’s small enough that the economies of those countries— Japan, Europe and the US—their health-care systems can still afford to support the aged today,” he said.

But the Philippines, he suggested, should now take advantage of the foreseen growth in the aging population worldwide.

“To design a hotel or a hospital will take at least one year. To get the [necessary] permits, that’s another three to six months. Then you construct, which will take three years.

So before you know it, you would have easily eaten up five years into this process,” he said, while noting that there will be around 400 million aged people in Asia alone in the next five to six years.

So how many economies or families can support the looming burst in aging population?

He estimated that between five and eight years from now, there will be countries getting crushed by the pressure of this global aging market.

“But today, everyone is taking it for granted,” he said.

Given that the cost of health care in mature markets is more higher than in emerging economies like the Philippines, yet the quality is almost the same, he expects that this will favor the country.

“That’s what going to keep driving people to come to the Philippines to retire here—and possibly to pass away here,” he said.

“We have all the facilities here, the technology and manpower.

So very soon, we make the clients themselves to come here.”

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MPIC wants to link its expressways

Release of remaining budget hinges on documentary compliance—DBM

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HE Department of Budget and Management (DBM) said the release of the remaining P427.9 billion from the 2015 national budget will depend on the documentary compliance of key spending agencies and departments still entitled to the funds.

In a disbursement report, the DBM said the key spending agencies need to accelerate spending to sustain growth and development. But before the remaining funds are released, these agencies need to improve budget planning and spending.

“The government sees a continuous acceleration in monthly spending in the following months,” latest DBM disbursement report said.

It added that “to further improve government spending, Cabinet-level discussions were held to address the issues that hampered spending in the previous month and to adopt measures to help departmentsagencies achieve their spending and physical.”

The DBM said large program balances under agency-specific budgets include the P48.1-billion current year allocation for the basic educational facilities fund of the Department of Education, which was transferred to the Department

of Public Works and Highways for implementation.

These unreleased funds also include the P12.5-billion appropriation under the Department of Health budget for the health facilities enhancement program, as well as the operation of special hospitals, medical centers, sanitaria and other medical hospitals.

The DBM said the bulk of unreleased budget includes funds under the special purpose funds (SPFs), including the P109.7 billion for the grant of productivity enhancement incentive.

The department also said that P83.7 billion, which is intended to cover pension requirements and terminal leave-retirement gratuity benefits for the rest of the year, remains unreleased.

Other unreleased SPF include budgetary support for governmentowned and -controlled corporations worth P85.4 billion, which is composed mostly of the National Health Insurance Program for indigent families of the Philippine Health Insurance Corp., P37.2 billion; balance for irrigation projects of National Irrigation Administration, P20.1billion; and resettlement programs of the National Housing Authority, P5.1 billion. Estrella Torres

I

A

By Lorenz S. Marasigan

NFRASTRUCTURE holdings company Metro Pacific Investments Corp. (MPIC) is planning to link all the expressways that it operates to provide seamless travel to motorists.

Metro Pacific Tollways Corp.

(MPTC) President Ramoncito S. Fernandez said the company plans to integrate the future CaviteLaguna Expressway (Calax) with the Manila-Cavite Toll Expressway (Cavitex), once it gets the go signal from the government to start building the multibillionpeso highway.

Cur rent ly, t he company is also connecting the North Luzon (Nlex) and the Subic-Clark-Tarlac Expressways (Sctex) under a

FERNANDEZ: “Once completed, Calax will integrate with Cavitex and will feature the same modern facilities of MPTC’s existing toll roads.”

P600-million project.

“Once completed, Calax will in-

MISON: “Due to system limitations, some papers need to be transmitted to our main office in Manila for approval.

But through ‘Service Beyond the Metro,’ we are basically bringing our main office services around the country.”

drivers to haggle for passengers, even up to the extent of violating traffic rules and worse, risking passengers to accidents.

In 2012 the Department of Labor and Employment (DOLE) released the Department Order 118, mandating the payment of fixed salaries and incentives-based portion to bus drivers and conductors.

Unfortunately, the DOLE scheme might not be creating any difference because it still has a commission based portion.

The existence of large num-

Recto pushes release of govt allocation for PWDs

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HE government should release 10 percent of this years P16-billion education budget without delay for school access ramps and furniture for persons with disabilities (PWD).

Senate President Pro Tempore Ralph Recto also called for the strict observance of the national budget provision obliging all infrastructure and civil works projects to be built this year to conform with Batas Pambansa (BP) 344 and other laws that require the design of these facilities “to enhance the mobility and safety of the disabled.

Another “funded program which must carry a ‘Do not delay’ sign,’’ he said, is the P100 million for the purchase of textbooks and instructional materials “for children with special needs.”

The amount is included in this year’s P16-billion allocation of the Department of Education (DepEd) for the “provision of learning resources” to public schools, Recto explained.

“I hope that what the DepEd will buy this year will include books in Braille,” Recto said.

Another “special provision” in the DepEd’s P319.3-billion 2015 budget is the contracting out of 10 percent of the budget for new school cooperatives for chairs, desks and

the improved infrastructure. Living standards of people in remote areas along the alignment with the improved transportation of goods and increased access to social services,” Fernandez added.

MPCALA Holdings Inc., a unit of the infrastructure conglomerate, topped the rebidding for the multibillion-peso deal with a P27.3-billion premium bid, edging out the P22.2billion premium offered by the San Miguel Corp.’s Optimal Infrastructure Development Inc. The flagship of Hong Kong-based First Pacific Co. Ltd. is the country’s largest expressway operator.

Fernandez earlier said his company is encouraging both the government and the private sector to jointly work on doubling the toll roads all over the country to 600 kilometers from the current 300 km.

The company, he added, hopes to contribute half of the projects 600-kilometer growth.

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OVERNMENT regulators and groups, seeking an efficient transportation system, suggested the reorganization of the numerous bus operators who ply Edsa to ease traffic congestion in one of Metro Manila’s busiest highways.

This as the social cost of traffic congestion along Edsa is now pegged at P5.5 billion a year, according to a study released by the state think tank Philippine Institute of Development Studies (PIDS).

Prof. Roehlano Briones, speaking during a back-to-back event dubbed “Competition Reforms in the Bus Transport and Rice Sector,” a meeting organized by Action for Economic Reforms, Consumer Unity and Trust Society International and PIDS held recently also underscored the importance of reforming the bus drivers’ compensation scheme to make them become more compliant with the traffic rules.

The PIDS’ study stressed that an effective decongestion policy among buses would significantly reduce the time-delay and productivity costs to commuters.

Previously, a 2014 study by the Japan International Cooperation Agency (Jica) resulted in a relevant conclusion, saying that a 50-percent bus reduction in Edsa was possible without a decrease in service level.

Aside from better traffic management and infrastructure, among the solutions currently being proposed is the fixing of the wage system of bus drivers and conductors.

The past system called “boundary system” has been seen to cause

“Due to system limitations, some papers need to be transmitted to our main office in Manila for approval. But through Service Beyond the Metro, we are basically bringing our main office services around the country,” he said.

The caravan offers the following services: long-stay visitors’ visa extension; extension and implementation of student visa; updating of stay; alien registration program (ARP); and application and issuance of ACR I-Card.

The program will run for two months and will include services to Cebu, Davao, Bacolod, Iloilo and Cagayan de Oro, among others.

The Service Beyond The Metro caravan is set to be opened in Baguio this week. Ashley Manabat

By Recto Mercene

tegrate with Cavitex and will feature the same modern facilities of MPTC’s existing toll roads. This is in line with our vision of eventually linking all our expressways— including the soon to be integrated Nlex-Sctex, Harbor Link—providing seamless travel experience to motorists,” Fernandez said.

Harbor Link is essentially the extension of the Nlex to the pier area in Manila to decongest the ports in the capital.

Calax, a 47-kilometer highway that will link Cavitex and the South Luzon Expressway, is expected to be completed by 2020. It is aimed at enhancing trade and socioeconomic activities in the region.

“The project is expected to directly generate more than 3,000 new jobs during the construction. This does not include the thousands of new jobs from the expected new investments along the Cavite-Laguna corridor from

Reorganization of bus operators plying Edsa sought

Immigration launches ‘Service Beyond the Metro’ caravan

NGELES CITY—The Bureau of Immigration (BI) has launched its nationwide caravan which offers a “onestop service that allows the transacting public to receive their immigration documents on the same day that the application was filed.”

The caravan, dubbed “Service Beyond the Metro: Lakbay-Ugnayan sa Aming ika-75 Kaarawan” aims to engage and collaborate with the transacting public and the local communities to allow a more transparent and more effective and efficient processing of immigration documents.

Immigration Commissioner Siegfred B. Mison said the caravan is “the first in the history of the BI” and is also part of the program of activities leading to the bureau’s 75th anniversary in September.

“This is a first in the history of the BI,” Mison said during the launching at the Marquee Mall here, where the bureau maintains a field office.

Heads of issuing offices of the BI are also present to address queries from the public and receive suggestions to improve immigration services.

Sunday, July 5, 2015 A3

RECTO: “I hope that what the DepEd will buy this year will include books in Braille.”

fixtures for PWDs. Another 15 percent will be allocated to other cooperatives, raising to one-fourth the “reserved share” of co-ops from the P1.2-billion DepEd budget for school furniture.

“This may not be much, but if successful, it could encourage the formation of local co-ops that will supply the furniture needs of local schools,” he said.

Recto also called for the augmentation of the measly P11-million budget of the Department of Social Welfare and Development (DSWD) “to assist PWDs.” “If budgeting laws allow it, then perhaps, the DSWD can shift some of its savings from

the P6.2-billion overhead for the Conditional Cash- Transfer Program to interventions that will help the disabled,” he said.

He added that the Department of Public Works and Highways (DPWH) “traditionally has funds at its disposal” which can be used to repair “existing streets, sidewalks and pedestrian overpasses” so they would comply with accessibility laws.

For the current year, the DPWH has a budget of P290 billion.

But in using this fund, Section 35 of the General Provisions of Republic Act 10651, the General Appropriations Act (GAA) for 2015, directs the DPWH to ensure that structures to be built must comply with BP 344.

So that there will be proper accounting on how much is spent for “the welfare of the disabled,” Recto said budget planners should start cataloguing resources that will be funnelled to this “unrepresented sector.”

“The idea is to set a disability index in the GAA. We’re using the traditional metrics of, for example, regional spending, or by object of expenditure. But, perhaps, in the years to come, we should start reckoning how much really is being spent for the blind, the deaf, or children with special needs.”

ber of buses implies profitability despite the “cut throat” competition, and thus, operators may be assumed of being capable of fixing their drivers’ wages.

Working toward this, alongside with disseminating stories of good practices in the bus transport sector and initiating a political analysis of the bus transport sector, are among the activities to undertake regarding the issue, the study said.

The meeting was attended by representatives of the Department of Justice-Office for Competition,

Business Licensing of Fair Trade and Enforcement Bureau, Land Transportation and Franchising Regulatory Board and Metropolitan Manila Development Authority, Asian Institute of Management, University of the Philippines (UP) National College of Public Administration and Governance and UP National Center for Transportation Studies, Foundation for Economic Freedom, Trade Advisory Group, Alternative Legal Services and Philippine Chamber of Commerce and Industry.

Country’s trade with Apec economies surpasses $100B

By Kris M. Crismundo Philippines News Agency

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HE country’s trade with other Asia-Pacific Economic Cooperation (Apec) member- economies has accounted for a big chunk of its total external trade in 2014, the Philippine Statistics Authority (PSA) said.

Recently released PSA data showed that the country’s trade with Apec economies reached $103.2 billion, or 80 percent, of the total external trade last year.

A total of $52.8 billion were revenue from exports to Apec economies, while $50.4 billion were the country’s imports receipt.

“Trading with this economic bloc resulted to a favorable balance of trade in goods to the country, which amounted to $2.4 billion,” the PSA said.

The Philippines’s top exports to other Apec economies in 2014 were electronic products, which exports amounted to $22 billion; other manufactures at $4.4 billion; woodcraft and

furniture at $3.2 billion; machinery and transport equipment at $3.2 billion; and other mineral products at $2.6 billion.

The country’s top exports destination in Apec in the previous year were Japan, the United States, China, Hong Kong and Singapore.

Top imported products from Apec economies comprised of electronic goods at $13.1 billion; mineral fuels, lubricants and related materials at $8.5 billion; transport equipment at $3.8 billion; industrial machinery and equipment at $2.6 billion; and plastic in primary and nonprimary form at $1.8 billion.

On the other hand, top imports source for the Philippines were China, the US, Japan, South Korea and Singapore.

Meanwhile, total foreign trade in 2014 grew by 7.0 percent, from $119.1 billion in 2013, to $127.5 billion with exports worth of $62.1 billion and imports amounting to $65.4 billion.

The country’s trade deficit in 2014 has eased to $3.3 billion from a deficit of $5.7 billion.

SundayV

Busine

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editorial

On a possible war between the US and a major power

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ISTURBING will be the mildest word to describe recent news quoting a report released by Gen. Martin Dempsey, chairman of the United States Joint Chiefs of Staff, warning of the “low but growing” probability of the United States fighting a war with a major power with “ immense” consequences.

While the report mentions Russia, Iran and North Korea as posing threats to the US and its allies, with Russia being singled out as “repeatedly demonstrating that it does not respect the sovereignty of its neighbors,” there is little doubt that the power referred to is China.

China’s actions are adding tension to the Asia-Pacific region, the document is quoted as saying, referring to China’s land-reclamation efforts to build islands in the contested West Philippine Sea to boost its military and civilian presence.

Whether the US and China will fight over whatever the issue is, we leave to political scientists and military strategists; what we know is that such a war, if it happens, will not be in the best interest of the Philippines. It can only inflict damage to us and our country. Given China’s manifest disgust at us, this damage can be severe, physically and emotionally. That we will fight back “to the last of the 1.4 billion Chinese” or that China will be reduced to radioactive ashes by the US, or vice versa, will be of no consequence.

We are not interested in fighting China or any country for that matter. But we are right in bringing our case to the International Tribunal for the Law of the Sea (Itlos) for a determination of its legitimacy. We hope that China does the same thing and abides by the decision, whether or not it is favorable to it.

For the moment, we wonder whether it is not timely for the Philippines and China to give diplomacy another chance. For the Philippines, the Aquino government may have come to a parting of the ways with China, but this is not irreversible.

We are told that diplomacy has myriad ways of dealing with international issues, including so-called back-channeling. If that is the case, then we can explore one or two of these ways to settle the West Philippine Sea issue, once and for all.

If the current Philippine government cannot do it, we must insist that the next administration be more conciliatory. Short of tipping their hands, which may forewarn the adversary, political personalities aspiring for the presidency must give us an idea of how they hope to deal with the issue. While awaiting the decision of the Itlos, we want to take the issue to the negotiating table.

But it takes two to tango. We hope China is not too impressed by its newly developed military clout and its elevation to major power status to take up with the Philippines the conflicting claims at the West Philippine Sea through dialogue and other peaceful means.

US needs more innovative, job-creating immigrants

By Noah Smith Bloomberg View (TNS)

H

ERE’S a name for you to remember: Yet-Ming Chiang.

It’s the name of an American hero. Yet-Ming Chiang is a professor of materials science at Massachusetts Institute of Technology.

Materials science is an unglamorous-sounding field, but Chiang is doing glamorous things. His quest is much the same as Elon Musk’s— to bring cheap, reliable batteries to humankind and to free us from the tyranny of oil.

In 2001 he cofounded a batteryresearch and manufacturing company called A123 Systems, which manufactured batteries in the US. Sadly, demand was inadequate; the company went bankrupt in 2012 and was sold. But failure and second chances are an American tradition, and Chiang is back, this time with a new battery company called 24M. It uses all-new technology and, like A123, will put its factories here in the US. But this isn’t an article about batteries. It’s an article about immigration.

Chiang was born in Taiwan and moved to the US—Brooklyn, to be precise—when he was 6. If Chiang’s family hadn’t been allowed to move here, he’d still be living in Taiwan, and all his hard work, genius and entrepreneurial drive would be going to serve the Taiwanese economy.

Instead, we let him in, and here he is, creating jobs for Americans and helping build a high-tech, high-value-added industry cluster here. The US has a special superpower, which few other nations can match. We can recruit our own heroes. Imagine if only one National Football League team were able to draft players and all the others had to train theirs from

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Sunday, July 5, 2015

H

birth. You’d want to be that one team, right? Well, that’s us.

Only a few countries, mostly from the Anglosphere—Canada, Australia, Singapore—can match us when it comes to recruiting and assimilating immigrants. Many of the heroes we recruit are of the everyday variety —the guy who fixes your roof, the woman who takes care of your kids while you work. That’s low-skilled immigration, and it has been good for us. But the other kind—high-skilled immigration—is also incredibly important, and that’s where we could do a lot better. Any immigrant adds to gross domestic product, just like any child being born will eventually add to GDP. But a high-skilled immigrant adds the most. Economists Eric Hanushek, Jens Ruhose and Ludger Woessmann estimate that about onefifth to one-third of the differences in income among American states can be explained by differences in human capital—i.e., education and talent. Some of that effect, of course, could be because richer states educate their people more and nurture more talent. But much of it is probably causal: Give people more skills, and the economy benefits. The cheapest way to do this is to admit immigrants with high skill levels. Unfortunately, though many do come here, we keep many others out.

A recent testimonial in Vox by William Han gives a wrenching illustration of just how broken our system is. Han, a New Zealander, has been living legally in the US for 15 years, studying at Ivy League schools, working as a lawyer, earning a high income and paying his taxes. Despite this stellar record, he is about to be forced to leave, simply because the US doesn’t have a system for keeping people like him in the country: To the Americans I have

E went away from there and came to His own country; and His disciples followed Him. And on the Sabbath, He began to teach in the synagogue; and many who heard Him were astonished, saying, “Where did This Man get all this? What is the wisdom given to Him? What mighty works are wrought by His Hands!

“Is not this the carpenter, the son of Mary and brother of James and Joses and Judas and

known, it really seems that people, or at least law-abiding people like me, should be able to just go down to the DMV (Department of Motor Vehicles), fill out some paperwork, and get citizenship.

Time and again, I have had to disabuse my friends of this misconception.... Years spent as a student do not count. Neither do years on a work visa, unless your employer is willing to sponsor your green card.

Usually, when we talk about highskilled immigration, we talk about H1-B visas, which are temporarywork visas sponsored by employers.

But H1-B is a horrible system. The visas last for three years and can be renewed once, for a total of six years.

After that, you need an employer to sponsor you for a green card if you want to stay. The need for H1-B renewal and green-card sponsorship leaves high-skilled workers dependent on their employers, almost like indentured servants. The problem with H1-B isn’t just that it eventually kicks high-skilled immigrants out of the country for no good reason. It’s also that by tying high-skilled immigrants to their employers, it prevents them from starting their own companies, like Yet-Ming Chiang did.

So although high-skilled immigrants are incredibly entrepreneurial, the H1-B program keeps them competing for your job, instead of competing to create new jobs! This has to end. Not only do we need to let in lots more high-skilled immigrants, we need to make it much, much easier to get a green card, not an H1-B. We need to create a huge pipeline by which skilled immigrants can apply for their own green cards, without the sponsorship of a company. If we don’t do this, a whole generation of American heroes will never become American in the first place.

Simon, and are not His sisters here with us?” And they took offense at Him. And Jesus said to them, “A prophet is not without honor, except in His own country, and among His own kin, and in His own house.”

And He could do no mighty work there, except that He laid his hands upon a few sick people and healed them. And He marveled because of their unbelief. And He went about among the villages teaching.— Mark 6:1-6

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opinion@businessmirror.com.ph • Sunday, July 5, 2015 A5

A strategy of governance for the next 6 years First of three parts “It is not enough to say ‘We are doing our best.’ You have got to do what is necessary.”—Winston Churchill

A The Brown Platform

By Michael Brown

S an American living in the Philippines for the last 16 years, I’ve studied this country closely, to satisfy my personal desire to better understand my adopted homeland. As a retired military staffer, formerly assigned to the US Embassy in Manila, I was privy to a view from behind the scenes, allowing me to see in detail the nuts and bolts that make this country work. Now that it’s time once again to choose new leadership, I’d like to offer my candid observations and recommend a strategy for change.

A political “platform for success” if you will.

The Philippines is dysfunctional in many ways. Routine police services are available to most people only for a fee. Much of the judicial system is, likewise, cash-driven. Not entirely, but enough to make truly blind justice impossible for many. Health care is out of reach to more than a third of the population. Not just expensive, but absolutely unobtainable. Labor practices keep millions locked into lifelong contractual employment, with no job security and no employment benefits. More than two-thirds of the population live at subsistence level, in a cycle of never-ending debt, with nowhere to turn for help; a kind of hopeless desperation that drives many to crime, and still others to rebellion. Corruption is routine practice in many, if not most, government offices, with “red tape” designed specifically and intentionally to create a need for under-the-table payment.

In addition, a massive amount of government money is wasted as a result of simple inefficiency and what Marcelo Guigale of the World Bank understatedly calls suboptimal management of public assets (i.e., loose money-management practices).

The Philippines is not as poor as people think, but between corruption and waste, the country barely has enough money left to function.

Worst of all, the leaks are so incredibly easy to plug.

Although on the surface, a robust system of laws, regulations and procedures exists to ensure order and effective governance, in reality, that system is easily bypassed. The simple truth is, corruption and waste thrive primarily because the nation’s laws

are not effectively enforced. Poverty, crime and rebellion are the direct, and inevitable, result.

The wrong approach

PREVIOUS administrations have tried to address corruption and, to a lesser extent, waste, but very little has really changed for the average Filipino. The Arroyo administration talked about building a “strong republic” and did achieve a certain degree of macroeconomic success, in spite of incredible corruption in that administration.

The current Aquino administration calls itself the “tuwid na daan,” or “straight path,” government and again, has been somewhat successful in that effort, but has also been reluctant to apply the straight path standard as aggressively as is really needed. Political accommodation cripples every administration.

But while both administrations can point to statistical indicators to show their gains, very little of that will “stick” over time, and, in reality, the life of the “bottom 50 percent” has not improved in any meaningful way over the last several decades. This is because the national leadership has always approached the country’s problems from the wrong direction.

A strong republic requires a strong foundation, but it is in the Philippines’s foundation that the country is weakest.

This was the fundamental flaw in the Arroyo strategy. Macroeconomic gains will inevitably erode if the foundation on which they stand is dysfunctional. The same can be said for Aquino’s straight path approach. No matter how well-designed, or wellintended, any program is doomed to fail if built on a weak base.

The Philippines is not dysfunctional because it’s weak at the top.

It is dysfunctional because it’s weak at the base.

Traffic in Metro Manila is chaotic and inefficient because laws, rules and procedures are not effectively enforced at the street level. The Kentex factory, and thousands like it, operate the way they do because those same laws, rules and procedures are not effectively enforced at the local government and agency level. Corruption in almost every government office is commonplace because the laws, rules and procedures designed to prevent it are not effectively enforced at all levels. And much of the money lost to simple

While both the Arroyo and Aquino administrations can point to statistical indicators to show their gains, very little of that will “stick” over time, and in reality, the life of the “bottom 50 percent” has not improved in any meaningful way over the last several decades. This is because the national leadership has always approached the country’s problems from the wrong direction. waste and inefficiency throughout the country can be attributed to the simple fact that those charged with managing that money fail to follow, or intentionally bypass, those laws, rules and procedures.

What the Philippines needs is not “reform,” but “reformation”— radical, comprehensive change in the way the country thinks and operates legally, politically, administratively and socially, like the reforms brought

by Ataturk in Turkey, Lee Kwan Yew in Singapore and, to a lesser extent, Deming in Japan. To truly and permanently raise the Philippines to the next level, the country must rebuild its foundation.

And to do that, it needs a president who is willing, as Churchill said, “to do what is necessary.”

The root problem

THE most seemingly urgent problem facing the Philippines is poverty: Tens of millions of citizens living at the subsistence level, with insufficient food, inadequate housing and little hope of ever rising above that situation.

But poverty is a symptom, not the disease itself. It is the result of an environment created by inefficient governance, corruption and waste. A national system that seems almost intentionally designed to keep a large segment of the population poor. The system is the disease.

A disease cannot be cured by treating symptoms, and in the same way, we will never be able to overcome the problems this country faces without first addressing the fundamental reasons those problems exist in the first place.

The highest priority issue, because it is the root cause of every other problem in the country, is the simple fact that we don’t enforce, or follow, the core rules and procedures

that are designed to ensure order and effective governance. The Philippines isn’t weak because it’s poor.

The Philippines is weak because it’s poorly managed.

A robust framework of laws and procedures is already in place, but as Filipinos themselves routinely point out, the weakness is in the implementation. In every public discussion, every newspaper article, and every forum about problems in the country, Filipinos express a frustrated desire for effective enforcement; a demand which is often met with simple silence. I believe it’s time to stop talking about enforcement, and to start actually doing it. The best way to achieve a strong foundation is with a national strategy of aggressive enforcement and accountability.

Even a poor government can dramatically improve the quality of its service, and provide that improved service to more people, by applying the rule of law across the board.

The “rule of law” simply means “law rules.” If the law requires that a certain act be done, it simply must be done, without delay or excuse. Poverty, peace and order, corruption, poor tax compliance, government waste, transportation, pollution, the communist insurgency, and even the issue of Muslim Mindanao, can be radically improved by the simple act of enforcing the laws and administrative procedures that already exist. Most of all, this means applying those laws with equal vigor to everyone, whether ally or enemy.

Filipinos often find this difficult.

Loyalty to friends is valued in Filipino culture, and many elected officials appear to apply a double standard in dealing with allies accused of wrongdoing. This has no place in the government. Any person, who feels uncomfortable applying the same standard to friends and foes alike, has no place in the government.

Accountability

In the business world, when a midlevel manager performs inadequately, the company leadership acts decisively. This may mean taking punitive action or it may mean replacing the individual, but in any case, the officer is held accountable. From a management perspective, this serves two purposes. First, a poor performer is replaced with someone more capable. This corrects a weakness and keeps the company running at peak efficiency. And second, it sends a

In France, extreme secularism

By Doyle McManus Los Angeles Times (TNS)

I

F you think immigration is a poisonous issue in American politics, spare a moment of sympathy for France, where demographics, terrorism and a presidential election have collided to produce a truly toxic mix.

For decades, France has grappled with the problem of a growing underclass in its industrial cities’ gritty working-class suburbs—mostly Muslim immigrants and children of immigrants from former colonies, such as Algeria, Morocco and Tunisia. This year French citizens of North African descent have been charged in at least two terrorist strikes: the January attack on the satirical weekly Charlie Hebdo, and last week’s attack on a factory near Lyon, where a severed head was impaled on a gatepost. And that has predictably intensified the debate among politicians about the challenges of assimilating Muslims into France’s largely secular society.

President François Hollande, a socialist, has insisted that the problem is terrorism, not Islam; his government has expanded discussions with Muslim organizations and increased employment aid for

low-income youth. Conservatives, led by ex-President Nicolas Sarkozy, have criticized the government for “wallowing in naïveté” and called for a national debate on the place of Islam in French society. As France’s 2017 presidential election approaches, Sarkozy—who plans to run again—has also turned up the heat with specific proposals. For example, he’s suggested that Muslim women in universities should be banned from wearing head scarves and that school cafeterias should stop offering menu options that meet Muslim dietary rules.

Like the US, France has a strong tradition of separating church and state, but in France, it takes the more rigorous form of a national policy of laïcité, or secularism. Under laïcité, which bars anyone from wearing religious symbols on government premises, female civil servants cannot wear scarves to work and mothers in veils cannot pick children up from school.

In April a high school in northern France sent a 15-year-old Muslim girl home for wearing a black maxi skirt to class. The principal explained that if her choice had been a matter of fashion, she could have stayed, but because it was an expression of religious belief, she

could not. (The dress rules are less stringent for university students, who are allowed to wear scarves— unless Sarkozy has his way.)

A separate law, known as the “burka ban,” prohibits women (and men) from covering their faces in a public place; last year a woman attending a performance of the Paris National Opera was told to leave unless she removed her veil. (She left.) The clothing rules cover other religious groups, too: Christian children have been told they cannot wear crucifixes to school if they are “conspicuous,” and in March a rabbi in the southern city of Toulouse was ordered to remove his kippa when he arrived at a polling station to vote.

But the laws, which have been widely supported by politicians of the left, as well as the right, affect Muslims more often than others.

That includes indirect effects: A Muslim civil-rights organization says there have been dozens of physical attacks on women wearing veils or head scarves on the street since 2014.

“There’s nothing wrong with the principle of laïcité,” Sefen Guez-Guez, a Muslim civil-rights lawyer in Nice, told me. “The problem is an extremist version of laïcité and it exists on both right and left. It’s not the

The laws, which are currently in force in France and have been widely supported by politicians of the left, as well as the right, affect Muslims more often than others. That includes indirect effects: A Muslim civil-rights organization says there have been dozens of physical attacks on women wearing veils or head scarves on the street since 2014. entire French public, by any means.

But when Sarkozy says the veil has no place in France, people hear that and say, well, if the leader of a major party says it, it must be a legitimate sentiment.” The effect on young Muslims, he warned, is dangerous.

“If you’re a Muslim, it makes you ask: Do I really have a place in France?” he said. “It means some Muslims find it difficult to be French and Muslim, at the same time. It means young people, especially, begin to feel that France doesn’t want us. It gives them a sense of being rejected...it leads to radicalization.”

Jean Bauberot, a sociologist who advised the French Parliament before it passed the 2004 law on religious clothing, agreed.

“If we wanted young people to be

clear signal to other managers that there is a consequence for substandard performance. The company may be sympathetic to the officer’s sense of dignity, but it cannot afford to let that sympathy override the interest of the company.

Individuals, departments and agencies of the Philippine government often operate with a high degree of independence and autonomy.

Regardless of the reason, this approach results in a lack of supervision and a lack of accountability. This leaves officials, even at senior levels, free to complete tasks poorly or not at all, with little or no consequence.

In addition, it opens a variety of opportunities for corruption.

The idea that government agencies are autonomous contradicts the principle that each is accountable.

They cannot be both. This applies at all levels of the government, from Cabinet-level departments down to the smallest barangay. Every government employee, from the top to the bottom, must be held to the highest standard of performance, effectiveness, and accountability, and immediate corrective action must be taken when that standard is not met. Not in theory, but in actual practice. “I’m doing my best” and “explain why you shouldn’t be held accountable” must become a thing of the past. The concept of “due process” cannot be allowed to delay or obstruct the reassignment of a poorly performing government official, at any level.

Government offices should operate as part of a chain of command, which runs through a series of supervisors, all the way up to the president.

Mediation between links in that chain implies an equality that simply doesn’t exist. A strong leader cannot allow disputes or internal discord to disrupt government operations and must require lower level managers to assert themselves. Any government department that doesn’t have a clear line of authority should be restructured. Anyone, whether elected, appointed or hired, who cannot function within that structure, has no place in the government.

To be continued Michael Brown has lived over 16 years in the Philippines. He writes on English, traffic management, law enforcement, and more recently, government. Follow him on Twitter at @M_i_c_h_a_e_l

attracted by extremism, we couldn’t do better than this,” he told Agence France-Presse. And this is in a country that is not notably hostile toward Islam.

A Pew Research survey in June found that the French are actually more hospitable toward Muslims than the citizens of other major European countries. In the Pew survey, 76 percent of respondents said they had “favorable” views toward Muslims; the remaining 24 percent said they had “unfavorable” views. By comparison, 61 percent of Italians said they had an unfavorable view of Muslims.

But even if they are not explicitly anti-Muslim, the French remain antiveil. Polls have found that strong majorities favor prohibiting scarves and other religious garb from public places.

“The French want diversity, but on condition that others resemble them,” Tareq Oubrou, the chief imam of Bordeaux’s mosque, said recently.

“They want the immigrant to integrate and disappear.”

That hasn’t happened. If there’s a lesson here, it may be this: Integrating immigrants isn’t always easy, but demanding cultural assimilation may backfire—and lead to alienation.

NewsSunday BusinessMirror

A6 Sunday, July 5, 2015 • Editor: Vittorio V. Vitug

Bill tightens rules on incumbent govt men who run for elective posts

T

HE House Committee on Suffrage and Electoral Reforms has approved a measure seeking to disqualify candidates who fail to vacate their appointive positions on the day of filing their certificates of candidacy (COCs).

House Bill (HB) 1976, authored

by Centrist Democratic Party Rep. Rufus Rodriguez of Cagayan de Oro and Party-list Rep. Maximo B. Rodriguez Jr. of Abamin, seeks to amend Section 15 of Republic Act (RA) 8436, or the Automated Elections Act. The amendment provides that “any person holding a public appointive office or position, including active members of the armed forces, and officers and employees in government-owned and -controlled corporations, shall be considered ipso facto resigned from his/ her office and must vacate the same at the start of the day of the filing of the certificate of candidacy: Provided, finally, that any appointive official who fails to vacate the office on the day of filing the certificate of candidacy shall be automatically disqualified as candidate for the elective position and shall not be eligible to assume the functions of the elective office.”

According to the authors, Batas Pambansa (BP) 881, or the Omnibus Election Code, provides that persons holding an appointive office or position are automatically resigned on the date of the COC filing.

However, Rufus said subsequent election laws, RA 8436 (Automated Elections Act) and RA 9006 (Fair Elections Act) are both silent on this election rule, thereby making BP 881 still the applicable law, insofar as the deemed resigned provisions for appointive office are concerned.

Then came RA 9369, said Rodriguez, which amended RA 8436, but

still retained the deemed resigned provision for appointive officials.

The lawmaker also said that, since RA 9369 adjusted the deadline for the COC filing to an earlier date, confusions arose on the interpretation as to the exact time of the deemed resignation, whether at the time of the COC filing or during the start of the campaign period.

“There is a need to clarify the law on appointive public officials as they file their COC. We should continue with the long-honored rule that appointive officials shall be considered resigned upon the filing of their respective COCs for public positions,” said Rufus, a lawyer and the chairman of the Ad Hoc Committee on the Bangsamoro basic law.

He said there is a marked distinction between appointive public officials from elective public officials, saying that, unlike their elective counterparts, who have fixed term as willed by the electorate, appointive officials are either co-terminus with their appointive authority or career officials who are prohibited from electioneering and partisan activity.

“Appointive officials can also utilize vast government resources for their political operation, if not considered resigned, when they file their COCs,” he added.

During the 15th Congress, Rufus’s proposal, through HB 3629, was approved by the Committee on Suffrage and Electoral Reforms and was substituted as HB 5481.

The House approved the measure on third and final reading, but it was not acted upon in the Senate.

On Friday Presidential Communications Secretary Herminio B. Coloma Jr., in an interview with dwIZ, reminded Cabinet officials who are planning to run in 2016 to follow election laws. Jovee Marie N. dela Cruz

www.businessmirror.com.ph

PIP, govt agencies move to ensure Metro fuel supply during calamities

T

By Lenie Lectura

HE Philippine Institute of Petroleum (PIP), a group of leading oil companies, and key government agencies signed last week the implementing rules governing the continued supply of fuels in Metro Manila during calamities and disasters.

The guidelines detail the roles of each signatory, areas of cooperation and the framework that will ensure fuel supply in Metro Manila in case of disasters arising from earthquakes, typhoons, floods, fire and spills.

The signing of the rules comes eight months after the memorandum of agreement (MOA) among PIP, Department of Energy (DOE), National Disaster Risk Reduction and Management Council (NDRRMC) and the Metro Manila Disaster Risk Reduction and Man-

agement Council (MMDRRMC) was signed.

The MOA provides reliable and continuous supply of fuels in the aftermath of calamities to ensure faster delivery of humanitarian aid, reconstruction and rehabilitation.

Under the rules, the DOE is the primary contact point between government and the petroleum industry, and will take the lead in the development of a disaster management plan.

The DOE is also tasked to coordi-

nate with PIP to prioritize fuel distribution and ensure the immediate restoration of power in fuel depots and retail stations.

The department may also opt to temporarily suspend biofuels blends, which require a 2-percent cocomethyl ester in diesel and 10-percent ethanol for gasoline.

T he MMDR R MC a nd t he NDRRMC, on the other hand, will provide a list of staging areas; coordinate with the DOE on fuel supply affecting key government agencies under their authority; and coordinate with concerned agencies on the exemption of fuel trucks from the truck ban in Metro Manila and in areas where fuel sources are located to facilitate delivery.

Meanwhile, PIP member-companies, which include Chevron Philippines, Pilipinas Shell Petroleum Corp., Petron Corp., PTT Philippines Corp., Total (Philippines) Corp. and Isla LPG Corp., will provide the DOE, the MMDRRMC and NDRMMC a list of stations where government vehicles can fuel up during disasters. These stations

will be located near incident command post areas.

The Department of the Interior and Local Government and its attached agencies, the Armed Forces, Department of Public Works and Highways and Department of Transportation and Communications, are also part of the agreement. Their responsibilities include providing status reports on affected localities and their fuel requirements, clearing operations for affected roads and bridges, safety and security of fuel tankers, marine vessels, fuel depots and stations, among others.

The MOA and its implementing guidelines forged by PIP and the government are the first-of-its-kind agreement in the country.

“This landmark agreement ensures that much-needed fuels get to the people and areas that need [them] most during disasters. There is an urgent need for closer cooperation among all sectors for a speedy and effective disaster response. We are proud signatories of this publicprivate pact,” PIP said.

Religious group urges resumption of talks with NDF

T

HE Philippine Ecumenical Peace Platform (PEPP) has called on both the Aquino administration and the National Democratic Front (NDF) to resume formal peace negotiations.

PEPP, the largest ecumenical formation of Christian church leaders in the country, issued the statement after meeting here from June 29 to July 1.

Bishop Emeritus Deogracias Iñiguez Jr. of Caloocan heads the PEPP secretariat.

“We held our Fourth Church Leaders’ Summit in Cebu City from June 29 to July 1 with 63 participants representing the Association of Major Religious Superiors of the Philippines—Catholic Bishops’ Conference of the Philippines, Ecumenical Bishops’ Forum, National Council of Churches in the Philippines and the Philippine Council of Evangelical Churches coming from all over the country to express our support for the resumption of the peace talks between the parties,” Iñiguez said.

“As we journey with the government-NDF peace process, we resolved to amplify the call to both parties to resume the formal peace talks on the Comprehensive Agreement on Socioeconomic Reforms that has been in an impasse since February 2011,” the PEPP said in a statement.

“As peace advocates, compelled by the gospel mandate, we see it within the ambit of our mission to accompany the peace process between the government and the NDF,” the group said.

“Former Commission on Elec-

tions Chairman Christian Monsod and former National Economic and Development Authority Director General Cielito Habito briefed us on the challenges of social justice and the need for fundamental socioeconomic reforms that will address the issues of poverty and inequity—the roots of the armed conflict. We heard the explanations of former government peace panel member, Rene Sarmiento, on how the Comprehensive Agreement on Respect for Human Rights and International Humanitarian Law was crafted through an arduous process of negotiations including the contentious issue of the Joint Agreement on Safety and Immunity Guarantees, which underwent a total of 17 drafts,” PEPP added.

“We were, likewise, moved by the testimonies of a health worker, a farmer and a Lumad about their experiences of injustice and the violation of their fundamental rights in their communities. We also engaged in profound conversations on how we as church leaders and our flock, can contribute to the peace

negotiations in order to attain the peace our people cry for. This sharing of insights and experiences by our resource persons and our own conversations has inspired us to remain committed and steadfast in our accompaniment work with the government-NDF peace process,” the group added.

“Recent developments have also strengthened our resolve. We are enthused by the recent pronouncements of the government and NDF that they are open to the possibility of going back to the negotiating table. We are similarly encouraged by the perseverance and ready involvement of the Royal Norwegian Government in its role as third-party facilitator with the appointment of a new special envoy in the person of Ms. Elisabeth Slattum, as we also call for a more proactive facilitation,” the statement read.

PEPP asked both the government and the NDF to resume the formal peace talks immediately and address the roots of the armed conflict.

It urged NDF representatives, as well as government negotiators, to make themselves even more visible and accessible to the public, especially to the organizations accompanying this process.

This, PEPP stressed, would permit peace advocates to clarify certain issues that impede progress in the talks and create an atmosphere conducive to the peace negotiations.

“As an expression of our commitment, we will help spread the good news of peace through the creative education of our people on the government-NDF process. We will do innovative approaches to peace in our churches like popularizing peace sports, songs, dances and other art forms in support of the peace process.

We will encourage our young people to be involved in different fora. We will, likewise, make our church leaders more visible in the public media expressing their full support to the talks. We will use the time and space during the election months to consolidate our ranks, strengthen our collective strategies, dialogue with different stakeholders to sustain the peace process and be more proactive when an opportunity opens up for the resumption of the talks,” PEPP promised.

“We affirm that all signed agreements that were painstakingly negotiated by both parties in the past are signs of hope and should be honored to serve as building blocks for future agreements,” it said. Marvyn N. Benaning

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The Regions BusinessMirror

Sunday, July 5, 2015 • Editor: Dionisio L. Pelayo A7

Ebdane on usurpation charge: I take full responsibility

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By Henry Empeño | Correspondent

BA, Zambales—Gov. Hermogenes Ebdane Jr. on Friday took things in stride, after the Ombudsman announced his indictment for graft and usurpation of official functions for allegedly issuing a mining permit beyond his mandate and favoring a mining company.

Ebdane, however, said that the Ombudsman resolution was “erroneous, and that I will take measures to counteract the charges.”

On Friday Ombudsman Conchita Carpio-Morales said she found probable cause to charge Ebdane for violating the Antigraft and Corrupt Practices Act and the Revised Penal Code’s provision on usurpation of official functions.

The Ombudsman also approved the filing of charges against Romelino Gojo, a member of the Provincial Mining Regulatory Board, Camilo Esico and four others from Geoking Asia Mining Corp. (Geoking) for

alleged theft of minerals under Section 103 of Republic Act (RA) 7942, or the Philippine Mining Act of 1995. The Ombudsman resolution stemmed from a complaint by Consolidated Mines Inc. (CMI), which operated the Coto Mines in Masinloc, Zambales, prior to Ebdane’s assumption as governor in 2010.

CMI alleged that Ebdane issued a small-scale mining permit to Geoking and allowed the same to haul some P211 million worth of chromite from CMI’s mining claim.

The complainant added that on October 30, 2011, Gojo, armed with

the mining permit signed by Ebdane for Esico, forcibly entered Coto Mines with a group of police officers headed by the then-Zambales police commander, Supt. Francisco Santiago Jr. Santiago and his men reportedly dismantled CMI’s security checkpoints on the road to Coto Mines.

Ebdane said on Friday afternoon that he has yet to receive a copy of the Ombudsman’s resolution indicting him for usurpation of official functions and violation of RA 3019.

But he indicated willingness to face the charges head on.

“In my long years in public service in the national government and now on my second term as local chief executive, my actions and decisions have always been based on a thorough evaluation, fair assessment of facts, with all good faith and due regard to our laws,” Ebdane said in a statement. He added that the case “had been haled to the court by the same complainant CMI, against the small-scale mining permit holders, [and] was dismissed recently by the Regional Trial Court of Iba.” “As governor of the province of Zambales, I take full responsibility for my actions, but I strongly believe that the conclusions reached in the Ombudsman’s resolution are mistaken,” Ebdane also said.

Students put teacher’s heroism on digital map

THE team from Eastern Samar National Comprehensive High School behind the winning “Doon Po Sa Amin” entry “Eugenio S. Daza: Hero of Eastern Samar.” From left, Arriane Aculan, teacher-coach Roderick Abellar, Christopher Jhon Gonzales, Kris Antoinette Benitez and teacher-coach Marcos Anacta.

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ISTORY books are the primary source of information about heroes.

However, there are some men and women whose heroic deeds have been overlooked or given only passing mention.

Take, for example, Eugenio S. Daza, who planned and led Filipino freedom fighters in the Balangiga Massacre, which is acknowledged as the “worst single defeat” of American forces in the Philippines.

Thanks to the youth of his native Eastern Samar, the story of the former teacher-turned-freedom fighter is now accessible to anyone who has an Internet connection.

The students of Eastern Samar National Comprehensive High School presented it in a video submitted to “Doon Po Sa Amin” (www.doonposaamin.ph), Smart Communications Inc.’s annual search for the best hometown stories on history, traditions, festivals and activities, places to visit, notable people, unique plants and animals, special delicacies and local products.

The group of Arriane Aculan, Lorenz Matthew Afable, Kris Antoinette Benitez, Christopher Jhon Gonzales, Trisha Rae Sabate, Ma. Romellie Tabuena and Ramon Kenneth Tiu won third place for “Doon Po Sa Amin, si Eugenio S. Daza: Bayani ng Silangang Samar.” It was their school’s first win in the country’s first and longest-running crowd-sourcing

competition designed to uncover the best and the most unique Filipino hometown stories.

T he school is joining the video-making contest again this year. Deadline for entries is on September 25.

Daza is credited as the strategist behind the September 28, 1901 encounter between Filipinos and American forces stationed in Balangiga, a town in Eastern Samar during the 1899 to 1902 Philippine-American War. He had the help of fellow patriots Custodio Salazar and Valeriano Abanador.

The encounter became known as the Balangiga Massacre, although accounts differ on whether “massacre” refers to the near wipeout of American soldiers at the hands of Filipinos, or to the Samar campaign hatched by the Americans in retaliation, wherein Filipino men, women and children over 10 years old were ordered killed on sight.

What the encounter establishes, though, is that the fight for Philippine independence remained strong in Samar even after the capture of President Emilio Aguinaldo by the Americans on March 23, 1901. It also brings to light the bravery of Daza and many Filipino heroes whose stories are just waiting to be uncovered from the country’s history chest, the students said.

Daza, who is also known as Lolo Enyong, was born in Borongan, Eastern Samar, on November 15,

1870, to Juan Cinco Daza and Magdalena Campomanes Salazar.

After earning a degree in education in 1888 at Escuela Normal de Maestros in Manila, he taught at the Borongan Municipal School, then later established his own school under the Spanish administration, which is now called the Eugenio S. Daza Pilot Elementary School.

He stopped teaching during the 1896 revolution against Spain to join the revolutionary forces in Samar. It was as an infantry major under the command of Brig.

Gen. Vicente Lukban, the politicomilitary governor of Samar appointed by Aguinaldo, that Daza planned the attack which would go down history as the “worst single defeat” of the US military in the Philippines.

After surrendering to the Americans in 1902, Daza was elected Representative of Samar’s Third District to the First Philippine Assembly. He died at the age of 84 in Calamba, Laguna. In deference to his last wish, his remains were brought to Borongan and buried on December 29, 1954.

“We want to share our version of David and Goliath with the entire world, that in the province of Eastern Samar, a simple elementary teacher in the person of Lolo Enyong Daza outwitted the heavily armed, battle-wise American soldiers from China in the battle of Balangiga,” said Roderick Abellar, the students’ teacher-coach.

House sets probe of Ormoc ferry sinking

By Jovee Marie N. dela Cruz

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HE House Committee on Transportation over the weekend said that the panel is set to conduct its own investigation on July 2’s boat sinking in Ormoc City.

The committee, headed by Liberal Party Rep. Cesar Sarmiento of Catanduanes, said the motu proprio inquiry will be conducted on July 9.

The Philippine Coast Guard (PCG) said that, as of Saturday morning, the death toll from the capsized MB Kim Nirvana has reached 59, while there were 140 survivors.

MB Kim Nirvana, which was carrying at least 199 passengers and crew, was on a trip to Camotes Island when it capsized 200 meters from the Ormoc port.

Initial investigation indicates human error as the cause as the woodhulled ferry boat made a sharp right turn soon after leaving the port in Leyte. Panicked passengers reportedly crowded the ferry’s right side, causing it to tilt before capsizing.

The ferry was also carrying cement but “didn’t appear to be overloaded,” said Cmdr. Armand Balilo, PCG spokesman.

Maritime safety FOLLOWING the accident, Nationalist People’s Coalition Rep. Sherwin Gatchalian of Valenzuela urged the PCG to tighten the inspection and seaworthiness evaluation of seacraft. “The Coast Guard should make sure that there are enough life vests for all passengers and crew

and that all those aboard wear such safety gear all throughout the trip,” Gatchalian said.

The lawmaker also said passengers are sometimes only made to wear life vests just before reaching their destination just to show compliance with regulations. In other instances, no life vests are available to passengers.

Gatchalian added the PCG should ensure that vessels do not carry weight that is beyond their capacity, considering the weight of all the passengers, crew, land vehicles and shipments. “The PCG should be strict and impartial in implementing the no-overloading rule,” he said.

“The vessels should also be made of sturdy material​s ​ and should not be too old to venture out to the sea.”

Psalm seeks bids for operation, maintenance of Malaya plant

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HE Power Sector Assets and Liabilities Management (Psalm) Corp. is soliciting bids for the operation and maintenance service contract (OMSC) for the 650-megawatt (MW) Malaya Thermal Power Plant Complex (MTPP) in Malaya, Pililla, Rizal.

The contract is good for a year and the state company has approved a budget of P457.3 million, which will be sourced through its 2015 and 2016 corporate operating budgets.

Interested bidders can already purchase a complete set of the bidding documents from PSALM office for P50,000.

Psalm has scheduled a prebid confer-

ence on July 17, while submission of bids is set on July 29.

Prospective bidders for the OMSC will be subjected to open competitive bidding procedures using nondiscretionary “pass or fail” criterion in accordance with Republic Act 9184, or the Government Procurement Reform Act. “Through this procurement project, Psalm hopes to ensure the continued maintenance and operation of the MTPP as a security plant for the Luzon grid,” Psalm OIC Lourdes S. Alzona said.

The Department of Energy (DOE) has formally designated the MTPP as a must-run unit

(MRU) in order to address any instability or supply deficiency that may occur as a result of sudden unavailability of any of the operating power plants in the grid.

The MTPP is forecast to continue operating as an MRU until its privatization schedule is finalized by the DOE. The MTPP is being managed by Psalm through an OMSC. The current operator of the power plant is STX Marine Service Co. Ltd. Its contract will expire in September.

STX Marine replaced Salcon Power Corp. after it won last year the bidding for a full-year O&M contract. Lenie Lectura

2nd Front Page BusinessMirror

A8 Sunday, July 5, 2015

BPI Capital in talks with local companies eyeing market debut

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By Genivi Factao

PI Capital Corp., the boutique investment banking arm of the Bank of the Philippine Islands (BPI), is in talks with several companies planning to conduct an initial public offering (IPO) this year.

BPI Capital Officer in Charge and Managing Director Reggie Cariaso said this year is a good year for many companies to continue with their expansion plans.

As they expand, they will need to raise their capital.

“The companies have grown a lot. They want to continue to grow, and they are looking for ways to finance their growth. Having access to the capital market will give them flexibility,” he told the BusinessMirror.

“We’re in talks with small and medium enterprises [SMEs] and some large corporations planning

to hold an IPO, hopefully within the year. Some of these companies could be in the consumer sector,” he said.

“The offer will be in various sizes. We’re still finalizing the structure for this deal. We have yet to decide on how many shares and the pricing,” he said, adding that he cannot disclose further details.

Philippine Stock Exchange COO Roel A. Refran said they are currently evaluating three applications for listing in the PSE.

“These applicants come from the consumer and manufacturing sector. Some of them are very ag-

gressive, and they want to launch by the third quarter of the year,” he said during the interview.

Last year BPI Capital helped raise over P70.4 billion in the equity-capital markets and introduced some well-known names to the investing public for the first time.

These included Max’s Group Inc.’s P3.5-billion pubic-equity offering, and SSI Group Inc.’s P7.5-billion IPO.

“The success of these deals was made possible through our diverse, comprehensive and innovative approach toward investments; our experienced team; and our solid partnership with the entire organization of BPI. We hope to help grow more business in the future,” Cariaso said.

BPI Capital’s client-focused and solutions-driven approach has been instrumental in introducing new names to investors. It helped businesses achieve their target growth through landmark and transformational deals.

The issuers in these deals range from small, medium to very large companies coming from industries such as consumer, technology, diversified, financials, telecommunications and construction.

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57 companies seek DOE okay for grid-impact studies

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By Lenie Lectura

ORE than 40 companies are seeking the green light from the Department of Energy (DOE) for them to conduct a grid-impact study for their planned power projects.

A clearance for the conduct of a grid impact study is necessary for a power firm before it can proceed with the construction of its power project.

Data from the agency as of end-June this year showed that the companies’ proposed projects could generate over 8,000 megawatts (MW) of power.

SMC Global Power Holdings Corp., for instance, plans to put up three coal-power plants with a total of 2,400 MW of capacity. These include a 1,200-MW power facility in Mariveles, Bataan; 600 MW in Batangas City; and another 600 MW in Malabuyoc, Cebu.

A 1,000-MW coal-power project of Orion Prime Pacific Energy Inc., likewise, received clearance from the DOE.

The list also revealed that Trans-Asia Oil and Energy Development Corp. plans to put up a 3x300, or a total of 900-MW, coal-power facility in Sual, Pangasinan.

H&WB Asia Pacific Corp. will put up a 2x350 coal-power plant in Camarines Norte.

Other firms on the list include The Ark Green Dynamic Resources Corp. with a 60-MW solar-power project in Misamis Oriental; and AES Philippines Power Partners Co. Ltd., 120-MW battery-storage plants in Davao del Sur, Compostela Valley and Masinloc, Zambales. It also has plans for a 40-MW coal-power plant in Masinloc, Zambales.

Energy Development Corp. of the Lopez Group also received the go signal to proceed with the study for the following wind, solar and hydropower projects. These include the 29.7-MW Matnog 1 wind; the 85.8-MW Matnog 2 wind; the 59.4-MW Matnog 3 wind; the 66-MW Iloilo 1 wind; the 69.3MW Iloilo 2 wind; the 99-MW Pagudpod wind; the 36.3-MWBurgos 1 wind; the 72.6-MW Burgos 2 wind; the 138.6-MW Negros wind; the 30-MW Burgos solar; the 30-MW Bogo solar; the 7-MW Labayat hydro; the 50-MW Murcia solar; the 35-MW President Roxas solar; the 25-MW Kilada-Matalim solar; and

the 55-MW Amihan solar.

Del Sol Energy is putting up a total of 240-MW solar-power projects in Paoay, Ilocos Norte, and in General Santos City.

San Carlos Solar Energy Inc. and San Carlos Sun Power Inc. are going to build a total of 195-MW solar farm in Negros Occidental.

Other firms on the list include the AP Solar Tiwi Inc., 70 MW in Tiwi, Albay; King Energy Generation Inc., 12.2-MW diesel-power plants in Pagadian City and Camiguin province; Solar Philippines Commercial Rooftop Projects Inc., 30 MW in Batangas; Isabela Power Corp., 35-MW hydro projects; Northgreen Energy Corp., 15.8-MW hydro projects in Tarlac; SPC Power Corp., 300-MW coal plant in Naga, Cebu; Hedcor Benguet Inc., 14.3-MW hydro power in Benguet;

PH Solar Advance Corp., 120 MW in Negros Occidental; Aboitiz Power Corp. , 44-MW hydropower in Benguet; Aseangas Corp., 8.8-MW biomass plant in Batangas; RE Power Energy Development Corp., 22-MW hydro projects in Quezon and Bukidnon; SunAsia Energy Inc., 30-MW solar in Negros Ocidental; Petro Green Energy Corp., 50-MW solar power in Tarlac; GA Solar Philippines Inc., 50 MW in Pampanga; E&P Green Energy Inc., 25-MW solar power in Biliran; CleenEnergy Corp., 12-MW biomass in Bataan; Enfinity Philippines, 30-MW solar in Butuan City, Agusan del Norte; Bayog Wind Power Corp., 160 MW in Pagudpod; Global Sibagat Hydro Power Corp., 33-MW hydro projects in Davao Oriental and Zamboanga del Sur; Greencane Sugarfields Corp., 120MW solar farmin Negros Occidental;

Sta. Clara Power Corp. 21-MW hydropower projects in Compostela Valley and Davao del Norte; Asian Greenergy Corp., 12-MW solar in Bukidnon; CEKO Solar Farm Systems Corp., 25 MW in Cebu; Hedcor Bukidnon Inc., 42-MW hydro; Megawatt Clean Energy Inc., 12-MW biomass and 36-MW solar in Negros Occidental; Peakpower Bukidnon Inc., 10.4-MW bunker-fired power plant; Solar Philippines, 150-MW solar projects in Tarlac, Sarangani and Misamis Oriental; Oceanagold Philippines Inc., 16.5 MW in Nueva Vizcaya; Living Porjects 4 People Philippines Inc., 100-MW solar in Isabela; SunAsia Energy Inc., 60 MW in Toledo, Cebu; E&P Green Energy Inc., 35-MW solar farm in Biliran; and Pan Enegy Corp., 50-MW wind in Zambales.

PHL must be watchful on Greece’s contagion

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S the global market players continue to track the developments in Greece’s referendum this Sunday, the Philippines should be watchful also on the possible contagion.

“If lenders to Greece panic and cut back

on their global lending and not treat us as an exception because of our investment grade is higher; our fundamentals are better; and our overseas remittance from the overseas Filipino workers in Greece is minuscule, we could be possibly affected by the contagion. Possible

People attend a rally organized by supporters of the “No” vote in Athens on Friday. A new opinion poll shows a dead heat in Greece’s referendum campaign, with just two days to go before Sunday’s vote on whether Greeks should accept more austerity in return for bailout loans. AP/Spyros Tsakiris

but not likely,” Development Bank of the Philippines Board Director Reynaldo Geronimo said.

He said the country’s fundamentals are much better than Greece’s. The Philippines has low exposure to Greece and it is not a trading partner. He said Greece’s foreign debt is “about 125 percent of their gross domestic product, ours is about 25 percent.”

“We should watch the contagion, though,” he said.

Last week the markets were still largely driven by the developments in Greece and economic-data releases in the US and the euro zone.

BPI Asset Management said this coming week they expect the euro-US dollar pair to trade range-bound, with Sunday’s Greek referendum being the main driver for movements in the currency.

BPI Asset said the local equities market slightly rose week on week, but ongoing Greek debt talks caused volatility throughout the week.

The local fixed-income securities traded with a downward price bias most of the week amid the uncertainty from the upcoming Greek referendum and release of US nonfarm payrolls data, which strengthened market belief of delay in US Federal Reserve rate lift-off. Genivi Factao