BusinessMirror November 17, 2014

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

U.N. Media Award 2008

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Life

The key to family happiness

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WHAT DOES THE BIBLE REALLY TEACH? AND LOUIE M. LACSON Word&Life Publications • teacherlouie1965@yahoo.com

Monday, November 17, 2014

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PABLO CABAHUG

SASSA JIMENEZ

The fierce and the fearless

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THOUGHT the Spring/Summer 2015 season for Philippine fashion was shaping up to be pallid and faint. Fortunately for inveterate fashion observers like me, something like the Manila Fashion Festival comes along to jolt us into excitement. The Manila Fashion Festival (MFF), organized by Art Personas, is “a biannual fashion extravaganza featuring the latest and biggest stars on the fashion industry. Putting a different spin on the usual fashion shows, the Manila Fashion Festival is an interactive experience sure to bring out the fashionista in everyone.”

On the three-night affair’s lineup, held at the hip and happening Green Sun Hotel in Makati City, are the most vibrant creative talents, bursting with imagination, though tempered by commercial inclinations. I caught the final staging, featuring Pablo Cabahug, YAY (Yevgeniya Alexandrovna Yushkova), Sassa Jimenez and Mark Bumgarner. All shows were under the kinetic direction of Jackie Aquino.

“Festivals like MFF help a lot in promoting and establishing our brands. I think, with a lot of young talented designers around, this is a vehicle for us to

TOTA PULCHRA MISS CHARLIZE

launch and improve our craft,” Cabahug says.

Jimenez shares the sentiment: “It is always an honor to come together with your peers and fellow designers to showcase what you have in store for the season.”

I have followed the dynamic career trajectories of Cabahug and Jimenez, and have witnessed their style evolutions while seeking their niches under the fashion firmament. These two, if I may say, are at the forefront of the New Guard eager and aggressive to take over the reins of Philippine fashion.

For his presentation, Cabahug was “inspired by the luxe culture of the Middle East, especially their women.”

He called it “Arabian Summer Nights.” An industry

fixture before he delved full time into designing, Cabahug has cultivated great friendships with supermodels, some of whom became his muses.

Melissa Frye opened his show and walked twice (her second outfit was a satinized pale pink gown with a beaded embroidery lining), while Bianca Valerio closed it (in a haltered sequined number with gold embroidery accents). Ria Bolivar sashayed in a fuchsia satinized chiffon haltered bias gown with embroidery detail at the back. In a prime example of Cabahug’s “hidden/ uninhibited” aesthetic, Pia Wurtzback, a bombshell in waiting, wore a neoprene one-sided gown with a bias overlay skirt. “The mesh material was my Leglove Designer Series hosiery,” the Dumaguete-born designer says. Kim Ross strutted in a satinized chiffon gown with draping on the neckline and skirt, while the panther-like Anna Fernandina Buquid donned an empire-waist fullbiased palazzo pants with embroidered bodice.

“I’m very proud of Pablo because he is determined to make a name for himself. He is aggressive, yet subtle.

His aesthetics slowly shows his strength as a designer and in creating a look that will define him,” esteemed designer Randy Ortiz says of his fierce protégée.

Jimenez, meanwhile, entitled her collection Chapter 1. “It is all about being blithe and easy. All the

pieces were created to be mixed and matched with the rest of the collection, so it’s easy to keep putting ensembles together,” the Fashion Institute of Design and Merchandising graduate explains.

“The [Spring/Summer 2015] style focuses a lot on the combination of light and heavy, or dark and light. Whether it is the color or weight or fabric, the pairing of two opposites comes into play,” she says of her collection, which includes a yellow-gold mesh shirt paired with a glazed cotton button-down and culottes; bone chambray overalls; cotton parachute dress with mesh skirt layered underneath; asymmetrical gray skirt with rust cropped top; and a black men’s jumpsuit.

Jimenez is decidedly building up on her street cred, having debuted at the Philippine Fashion Week several years back with her frothy creations of voluminous gowns and cocktail dresses. Her fearlessly edgy evolution ushers in a more postmodern punk-party princess. “Fashion showcases [such as the Manila Fashion Festival] aid in showing our market what our ideas and points of view are for a particular season,” Jimenez says. “Apart from it being a great platform for self-expression, the shows help jump-start our business for the rest of the year. It shows people what we have available for them to buy or order.” ■

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managing fame and celebrity Marketing BusinessMirror

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Editor: Alvin I. Dacanay • Monday, November 17, 2014 E3

MAN WITH MANY HATS

PR Matters

BY Bong R. Osorio

ACTOR Joaquin Phoenix signs autographs for fans at the gala screening of his latest film Inherent Vice during the 2014 American Film Institute Fest at The Egyptian Theater in Los Angeles, California, on November 8. AP

FAME is a bee.

It has a song— It has a sting— Ah, too, it has a wing.

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HE poem above, titled “Fame is a bee” and written by 19th-century American poet Emily Dickinson, serves as a fair warning for people. It aptly describes how a fleeting celebrity life is played out. You’re handed just enough time to enjoy fame; capture media attention; and be written and talked about, “Facebooked,” tweeted or “Instagrammed.”

A celebrity or entertainment public-relations (PR) communicator has the enviable opportunity to regularly come face-to-face with famous and “want to be famous” people.

From these encounters, the communicator can debunk or reaffirm time-tested principles of good PR, as well as pick up new knowledge and skills to add to his or her years of practicing PR professionally. Having been involved in celebrity-communications management for some time, allow me to share some observations on how celebrities or would-be celebrities can thrive in the ephemeral world of showbiz.

INDUSTRY GREATS COME TOGETHER AT THE FIRST ADOBO FESTIVAL OF IDEAS

A POWERHOUSE lineup of creative legends is coming together to talk about the truth of advertising at the adobo Festival of Ideas, happening on November 22 at the Samsung Hall, SM Aura Premier.

McCann Worldgroup President and Creative Guild Lifetime Achievement awardee Raul Castro is joining forces with Coca-Cola Marketing Director Jasmin Vinculado, who was part of the team that thought up the Share-a-Coke campaign. Together, Castro and Vinculado will be talking about the viral global campaign, and how they adapted it to fit the local market.

Publicis Manila CEO and former 4As Chairman Matec Villanueva is teaming up with award-winning filmmaker and exadman Marlon Rivera to talk about what it really means to work hard (and play hard) in the advertising industry.

Publicis JimenezBasic Associate Creative Directors JP Cuison and Kulas Abrenilla, who have both represented the country in the Cannes Young Lions competition, will be telling the story of their journey in the advertising industry, detailing everything, from their humble beginning to where they are now.

Fat Free founder, Creative Guild Hall of Famer and the undisputed Queen of Radio Ompong Remigio, along with Publicis JimenezBasic Executive Creative Director and Cannes Gold Lion winner Brandie Tan, and AKQA Shanghai Creative Director and Palanca Award-winning writer Asterio Gutierrez will be talking about what art directors and copywriters do and don’t do as they demystify art, copy and coding.

Multiawarded creatives Lowe Philippines President and CCO Leigh Reyes and TBWA\SMP Associate Creative Director John Ed de Vera are set to get crafty with a live art demo using conductive paint as they talk about the importance of tinkering in the life of a creative.

ABS-CBN chief digital officer and recent Agora awardee Donald Lim will be talking about three new YouTube sensations and what makes them successful online content creators in his talk about digital pervasiveness.

YOUR fans will give you career support. Take care of them. Have a target niche. It can be as small as three or as large as a million. You can define it by looking inward and being aware of who you really are. The niche groups, once you develop them, will help open doors, push you into the mainstream-star arena, expand your territory, sustain your competitiveness and protect you from falling out. They can be your most loyal followers who will be around, come rain or shine.

Key messaging is important in projecting your star. If you have to face the media, make sure you have something to say. Identify your “selling propositions” clearly and proactively convey them at every interview opportunity. If these are not clear in your head, don’t even dare to bring yourself to a media briefing. You might just blabber and lose your bearings.

Whatever you call it, the public loves persistence. “Try and try until you succeed” is a timeless adage found in many slum-book entries, and is truly a reminder that patience is a virtue. A matinee idol followed his dream of becoming a rock singer and was able to cut some records. He may not have been thoroughly successful in his experimentation, but he persisted in realizing his dream. In the process, his mainstream presence was reduced, but he was able to stage a successful comeback.

Have a clear personal brand

Be visible in the media

WHATEVER your role in life is, you should stand for something. You are a brand. Your branding must be clear, focused and differentiated from the rest. Know your best and worst traits, and work around them. Define your publics and determine how you want them to see you. Be familiar with your landscape, develop an intimacy with your publics, efficiently connect with them and gradually turn them into brand evangelists. Support an advocacy or public-service project that resonates with your targets. It can provide

self famous, relish it, for it can be short-lived, especially if you are not able to handle it well.

Fifteen minutes of fame—that’s all you have if you listen to American artist and pop-art movement leader Andy Warhol. Enjoy the view, fast.

Bong R. Osorio is the communications consultant and spokesman of ABS-CBN Corp.

PR Matters is a rotating column of members of the local chapter of the United Kingdombased International Public Relations Association, the association of senior PR professionals around the world.

PR Matters is devoting a special column each month to answer readers’ questions about public relations. Send comments or questions to askipraphil@gmail.com.

Take care of your fans

PEOPLE, products, places or events can be written or talked about in the media positively or negatively. But it’s best to start with your truth every time. For sure, it will not be a bed of roses. Thorns will prick your sensitive fingers very often. Unpalatable information, whether accurate or distorted, will cross your path and it can be picked up with delight. And if you go by the classic communications theory that says, “Perception becomes reality,” the lie will be received as fact if it becomes talked about in broadcast media or shared in social media frequently.

In such a situation, you will undergo media scrutiny. But, at the end of it, what will emerge as valuable is your truth, and that is the information you can start with for your defense.

Everything starts with the basic idea of dominance. In PR communications, the “rule of first” prevails. Your first claim, your first image or your first mnemonic device will form the belief or attitude of the targeted publics. It could be the most influential message or visual element that will create people’s perception of and stance about you.

Start with your truth

number of dedicated readers and viewers. Be friends with them.

If you have reached the top, prepare for the eventual descent. When you attain iconic status, expect to be knocked out and brought down from your pedestal. British-American actress Olivia de Havilland, known for her early ingénue roles, enthused, “Famous people feel that they must perpetually be on the crest of the wave, not realizing that it is against all the rules of life. You can’t be on top all the time, it isn’t natural.”

Author Mark Twain echoes this when he said, “Fame is a vapor, and popularity an accident or something you design. The only earthly thing is oblivion.”

If you wake up one morning and find your-

a conscience to what you are doing, attract legions of fans and bring lucrative advertising endorsements.

Getting bad press is part of the territory. Expect it to confront you. It is uncomfortable, but you can’t avoid it. But you can be a “darling of the press,” too, if you are seen as so wonderful and lovable that editors and reporters are not eager to rip you apart. If you err, they can rush to your side and give you the benefit of the doubt. The best way to evade bad press is to conduct yourself well, especially in the public eye, and to treat your media partners with respect and sincerity.

An indiscretion can become fodder for public discussion. Be on your guard. Always behave as if you are constantly being watched. Your misbehavior can be photographed or recorded on video, and uploaded to a website or published in a leading tabloid. You can run, but you can’t hide—the truth has been exposed, and it’s going to haunt and damage you.

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VISIBILITY in media-covered events can provide productive results. Walk the red carpet during awards nights, participate in a celebrity auction or join a fashion-for-a-cause affair.

Show off your wit, your fashion sense and your band of devotees.

Media people are your friends; develop and nurture your camaraderie with them. There is no reason to avoid the entertainment pages of the tabloids and broadsheets, and the TV and radio talk shows. They are important coverage channels. They bring a big

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pull back, before armageddon starts E4 Monday, November 17, 2014

BusinessMirror

Pull back, before Armageddon starts

PALESTINIANS pray on Friday outside the Old City in Jerusalem as Israeli police limited the access to al-Aqsa Mosque. The holy site in Jerusalem’s Old City is known to Jews as the Temple Mount and is the most sacred spot in Judaism. Muslims revere it as the Noble Sanctuary, Islam’s third-holiest site and home to the al-Aqsa Mosque and the gold-topped Dome of the Rock. AP/MAHMOUD ILLEAN

B T R | The Philadelphia Inquirer

Three faiths, one city

HILE Shiites and Sunnis kill each other in Syria, an even more dangerous religious war could soon explode in Jerusalem, involving Jews, Muslims and Christians.

I refer to the mounting IsraeliArab tensions over control of the Temple Mount, or Haram al-Sharif, as Muslims call it, in Jerusalem’s Old City, which is Judaism’s holiest site and the third holiest for Islam.

“The Temple Mount is a powder keg, and arsonists have the upper hand,” blared a Wednesday headline in the Israeli newspaper Ha’aretz.

The mount is so sensitive—as the site of Solomon’s temple and the rock from which the prophet Muhammad is said to have ascended to heaven—that Israeli leaders left it under Palestinian and Jordanian control after they captured the Old City in 1967.

Yet, at a time when the Mideast is in flames, right-wing Israelis, including cabinet officials and parliament members, are agitating to change the Temple Mount’s status. Prime Minister Benjamin Netanyahu insists the status quo will remain; but Palestinians don’t believe him, as religious provocateurs press their case.

The tension threatens to spark another Palestinian uprising—individual terrorist acts against Jews are multiplying. The issue has become a rallying cry for Palestinian radicals, including Hamas. It is also shaking Israel’s relations with key Arab allies, such as Jordan, and undermining Israeli hopes for new cooperation with moderate Sunni states in the fight against the Islamic State.

In the worst case—a scenario that keeps Israeli intelligence chiefs awake—a Temple Mount explosion could put Israel at odds with the entire Muslim world. The national struggle between Israelis and Palestinians could shift into a

At the center of the struggle for Mideast peace, Jerusalem is claimed by Jews, Muslims and Christians because of the importance to their religions.

Jerusalem

Around King David captures Jerusalem, which becomes 993 the City of David and Kingdom of Israel capital 960 King Solomon builds First Temple; destroyed by Babylonians 400 years later, B.C. then replaced 63 Romans invade, led by Pompey

wider Arab-Jewish religious war.

What’s so surprising is that the situation has been allowed to deteriorate this far.

After all, the immediate issue—whether Jews should be allowed to pray on the Mount, which the Israeli government doesn’t permit for security reasons—is hardly the main problem confronting Israelis.

A majority of the rabbinical establishment, including Sephardi Chief Rabbi Yitzhak Yosef, opposes prayer there for both religious and security reasons, while 56 percent of the public, according to polls, says Jewish prayer there should be restricted.

Israeli analysts point out that it is the Western (“wailing”) Wall of the Temple Mount, where they pray freely, that has long been considered the most sacred site by most Jews, not the Temple Mount.

More to the point, the Israelis pushing for the “religious freedom” to pray on the holy site really want something else.

Read the web sites of groups such as the Temple Institute (whose former head, Yehuda Glick, just survived a Palestinian assassination attempt) and you see that the goal is to rebuild a “third” temple on the locale of the second one, which was destroyed under the Romans. That would mean pushing Palestinians off the Mount.

“Uri Ariel [the Israeli minister of housing and construction] is praying openly on the Temple Mount and says on TV he’d be delighted to rebuild the temple,” says Danny Seidemann, a leading Israeli expert on Jerusalem. Right-wing

Damascus Gate

JORDAN

Lions’ Gate

Temple Mount

Church of the Holy Sepulchre

1/4 mile

Dome of the Rock

390 Christian Church of the Holy Sepulchre built 638 Muslim Arabs conquer Jerusalem; becomes part of the Ottoman Empire

Jaffa Gate

691 Dome of the Rock mosque finished 1917 Comes under British control after defeat of the Ottoman Empire in World War I

ARMENIAN QUARTER

East Jerusalem

Old City

Jerusalem Dung Gate

Caiaphas’ house David’s tomb

1967 Israel gains control of entire city after Six-Day War Source: Jewish Virtual Library, Fodor’s Israel, Reuters Graphic: Lee Hulteng, Pat Carr

to heaven. Christian groups snap up books such as Ready to Rebuild by the Reverends Randall Price and Thomas Ice—available at the Tel Aviv airport bookstore—which contains detailed architectural drawings for a third temple, as they head for the site.

What worries Israeli security officials is where such agitation can lead to. In 1984 intelligence agents accidentally discovered a well-organized plot by radical Jewish activists to blow up the Dome of the Rock in hopes of rebuilding the temple. Many similar but less-

1/4 km

El-Aqsa Mosque

JEWISH QUARTER

Zion Gate

1947 U.N. proposes international rule for city when modern Israel is established after World War II 1948-49 Arab-Israeli war leaves Israel holding the West, Arabs in control of East

© 2010 MCT

Dead Sea

ISRAEL

MUSLIM QUARTER

CHRISTIAN QUARTER

33 Jesus Christ crucified 70 Temple destroyed by Romans, a factor in the Jewish diaspora; city gradually becomes Christian as Roman Empire is Christianized

A.D.

Knesset members are pushing for new laws permitting “religious freedom” on the mount, even as an increasing number of activists visit the site. Th is has meant a growing police presence, and violent opposition from organized Palestinian groups.

Meantime, Temple Mounters are urged on by US Christian fundamentalists, who visit Jerusalem in droves. These groups believe the building of the third temple will lead to Armageddon, in which Jews will battle Arabs to the finish, while Christian believers are “lifted up”

West Bank

Tel Aviv

Significant moments

Muslim quarter

Christian quarter

Muslims believe their founder Mohammad ascended to heaven at site of Dome of the Rock mosque

Jerusalem, surrounding areas are sites of Christ’s birth, death, resurrection

organized plots have been thwarted by Israeli intelligence since.

“Blowing up the Dome of the Rock,” said former Shin Bet head Carmi Gillon in the gripping documentary The Gatekeepers, “could lead to total war by all the Islamic states—not just the Arab states, not just Iran, Indonesia too— against the State of Israel.”

While the second Palestinian intifada was sparked by a visit by Israeli leader Ariel Sharon to the mount in 2000, continued visits

by Israeli ministers this time could lead to something far grimmer.

Jewish quarter

Armenian quarter

Western Wall, ruined retaining wall of the Temple Mount complex, is focus of Jewish prayer

Christian Armenians claim a presence in Jerusalem since the first century

No doubt that’s why hawkish Foreign Minister Avigdor Lieberman called fellow ministers “stupid” for pushing the prayer issue now (would that Netanyahu was as blunt). “I think it’s the pursuit of cheap and easy publicity and a somewhat cynical exploitation of the complicated political situation,” Lieberman told Israel Radio. “Increasing the friction won’t bring security.”

Let’s hope, for the sake of Israel, the region, and the world, that the Temple Mounters get the message—before Armageddon starts.

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epic finale PELé

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Sports

| Monday, noveMber 17, 2014 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph

PELé LEAVES HOSPITAL AFTER KIDNEY SURGERY

BusinessMirror

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ãO PAULO—A Brazilian hospital says Pelé has been discharged after undergoing surgery to remove kidney stones.

A statement from the Albert Einstein hospital said that the retired football player left on Saturday. It offered no other information.

The 74-year-old Pelé was hospitalized on Wednesday evening after canceling his appearance at an event at the Pelé Museum in the coastal city of Santos because of stomach pain.

He is widely regarded to be among the greatest football players of all time. AP

German league prexy:

UEFA could leave Fifa

SwITzERLAND’S Roger Federer plays a return to Switzerland’s Stan wawrinka during semifinals match of the ATP world Tour Finals.

Federer prevailed and will face Serbia’s Novak Djokovic (below), who won over kei Nishikori of japan. AP

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ERLIN—The Union of European Football Associations (UEFA) would have to consider leaving the International Football Federations (Fifa) if world football’s governing body does not publish in full American lawyer Michael Garcia’s report into bidding for the 2018 and 2022 World Cups, German Football League President Reinhard Rauball says.

Rauball tells Kicker magazine he also wants Fifa to divulge what wasn’t evaluated in Garcia’s report, and “whether it was justified to leave these things out. That has to be made public. It’s the only way Fifa can restore some of its lost credibility.”

Rauball was responding to German judge Joachim Eckert’s ruling that while there were concerns over aspects of the Russia and Qatar winning bids to host the World Cup in 2018 and 2022, respectively, it “was far from reaching any threshold” to run a re-vote for the tournaments—a ruling that was harshly contested by Garcia.

Garcia indicated he will appeal Eckert’s decision to close the case, saying it was based on “materially incomplete and erroneous” interpretation of his own findings—430 pages of investigative work sealed by Fifa from public scrutiny.

Rauball warned if Garcia’s findings are not published “and this crisis is not resolved in a credible manner, you have to maybe also talk about the question of whether you are actually still well-served by Fifa.”

Asked about possible consequences, Rauball replied, “One option, which would have to be seriously considered, is certainly whether UEFA should leave Fifa.”

He described Eckert’s ruling as a “communicative meltdown,” and said it “shakes the foundations of Fifa in a way I never experienced before.” AP

ROONEY SCORES ON 100TH GAME

VERSUS SLOVENIA

By Rob Harris

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The Associated Press

ONDON—Wayne Rooney scored for England on his 100th appearance before Danny Welbeck’s double secured a 3-1 victory over Slovenia in European Championship qualifying on Saturday.

As Roy Hodgson’s Group E leaders made it four wins out of four, San Marino earned a landmark 0-0 draw against Estonia, ending a run of 61 consecutive losses for world football’s lowest-ranked team.

The milestone match for Rooney at Wembley saw the England captain net his 44th international goal—canceling Jordan Henderson’s own goal—to go five behind Bobby Charlton’s record 49.

“It was tough because they took the lead and we had to show our character,” Rooney said. “It was a great reaction from the players.”

England surged six points clear of Slovenia, Switzerland and Lithuania. The Swiss beat visiting Lithuania 4-0, with winger Xherdan Shaqiri scoring twice.

Before the game in London, Rooney collected his commemorative golden 100th cap from Charlton to cheers, but the atmosphere became subdued as England labored throughout the first half, looking disjointed.

The game came to life 10 minutes into the second half when England finally found the target, with Phil Jagielka’s header saved by goalkeeper Samir Handanovic.

But at the other end, Henderson inadvertently flicked Milivoje Novakovic’s free kick into his own goal when a headed clearance went wrong.

Just as quickly, the action was back in the Slovenia penalty area, with Rooney earning the penalty following Bostjan Cesar’s challenge and scoring from the spot.

Rooney is England’s joint-third highest goal-scorer alongside Jimmy Greaves.

“It was a fine piece of play by Jack Wilshere to set it up, but it was a very good run from [Rooney] into the box and that put us right back in the game,” Hodgson said.

England’s fortunes had turned, and Welbeck punished Slovenia twice.

Adam Lallana cut in from the right and a deflected shot that was parried by Handanovic, but Miso Brecko’s headed clearance went straight to Welbeck. His scuffed shot put England in front in the 65th.

It was a slicker buildup to Welbeck’s second goal. Kieran Gibbs played in Welbeck, who played a neat one-two with Raheem Sterling before knocking the ball into the net in the 72nd.

England heads to Glasgow for a friendly against Scotland on Tuesday, although goalkeeper Joe Hart is being given time off, leaving Fraser Forster or Ben Foster competing for the starting spot.

Beaten by England and Slovenia to open the group, Switzerland has had back-to-back 4-0 wins against San Marino and now Lithuania.

All the goals came in the second half, with visiting goalkeeper Giedrius Arlauskis gifting the first in the 66th minute by fumbling a Shaqiri corner into his own net on a rainy night.

Defender Fabian Schaer finished neatly two minutes later after another Shqairi corner was not cleared, and the Swiss star scored with a header and flick from right-flank crosses in the 80th and 90th. AP

ATP FINALS: DjOkOVIC VS FEDERER FOR TITLE

EPIC FINALE

By Samuel Petrequin

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The Associated Press

ONDON—Roger Federer saved four match points on Saturday to ensure the most successful player at the Association of Tennis Professionals (ATP) Finals will take on the best player of the season in a mouthwatering final.

Federer, a six-time champion, fought for nearly three hours to reach a ninth final in a thrilling 4-6, 7-5, 7-6 (6) win over his Davis Cup teammate Stan Wawrinka. The 17-time Grand Slam champion will face the top-ranked Novak Djokovic on Sunday.

Having swept his group imperiously, Federer was the favorite, but met strong resistance from the Australian Open champion, who failed to cope with nerves in the end.

ENGLAND’S wayne Rooney celebrates after scoring against Slovenia. AP

Wawrinka had Federer under constant pressure from the baseline, and kept his composure until he served for the match at 5-4 in the deciding set. He dropped serve following three clumsy approaches to the net on match points.

“For sure that game at the end I was nervous,” admitted a devastated Wawrinka. “You make some choice, especially when you’re tired, when you’re nervous. Just wanted to go for it and not wait for mistake.”

Federer saved the fourth match point with a service winner in the tiebreak then converted his first chance to seal the semifinal with a drop shot volley that Wawrinka could not return.

“I got lucky tonight. Stan played better from the baseline and that usually does the job on this court,” Federer said. “But I kept fighting. It’s tough but I’m thrilled to

be in another final in London. Novak is playing great tennis. It usually brings the best out of me.”

Federer and Wawrinka will be teaming up next week in the Davis Cup final against France, but Wawrinka said he is not sure how he will react after his cruel loss.

“I can either be destroyed or bounce back,” the Swiss said.

“Hopefully he is not too disappointed and will recover soon,” Federer said. “It would be good for both of us.”

A two-time defending champion at the O2 Arena, Djokovic overcame a lapse of concentration to beat Kei Nishikori 6-1, 3-6, 6-0 and advance to a third straight final.

Wawrinka and Federer treated their fans with some superb winners and, for the first time this week, nerve-racking suspense was on the bill.

Wawrinka took all the risks on Federer’s serve, a strategy that paid off when he broke in the third game with two consecutive forehand winners.

Serving well and playing deep, Wawrinka limited Federer’s opportunities to come to the net.

The second set was also suspenseful, with Federer coming out on top after breaking his compatriot at love in the 12th game.

Wawrinka broke immediately at the start of the decider and held until he served for the match at 5-4. He crumbled, and was punished by Federer on his match points.

Djokovic also dropped his first set of the tournament against Nishikori. The Serb, who sealed the year-end No. 1 spot after finishing unbeaten in his group, lost his focus early in the second set after being angered by a partisan crowd.

Djokovic’s game dropped off suddenly when he let Nishikori back in the match with a double fault that the crowd applauded. The Serb applauded in return with irony and shook his head in disbelief.

“The crowd has a right to do what they want, to cheer for whoever they want,” Djokovic said. “Some individuals that were going over the line throughout the whole match, some provocations that I usually don’t react on, but I did. It was my fault. Hopefully, tomorrow it will not happen.”

Nishikori failed to seize his chance at the start of the third set. The turning point came in the first game, when Djokovic—who had lost just nine games in his three previous matches—faced two break points at 15-40. Nishikori hit two consecutive unforced errors as the momentum swung the Serb’s way.

Djokovic showed no mercy, extending his indoor unbeaten run to 31 matches.

Djokovic, who beat Federer in the Wimbledon final, admitted he was “exhausted” after the match.

“But knowing just that tomorrow is the last match of the season, I’m sure that I will find any necessary drop of strength, mental and physical, to give it on the court.”

sports

U.S., JAPAN, AUSTRALIA AGREE TO DEEPEN TIES ON MARITIME SECURITY

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ongress is in a rush again to grant President Aquino emergency authority to build spare power-generating capacity as it eyes the issuance of a joint resolution to this effect not later than November this year.

“We are running out of time. There are tax perks, such as VAT [value-added tax] exemption, that need to be granted to ILP [Interruptible Load Program] participants that would require legislation. But we do not have time for that anymore. That is the reason the President should be granted special powers,” said Oriental Mindoro Rep. Reynaldo Umali, chairman of the House Committee on Energy.

Umali’s fresh statement came after congressmen, during a hearing on October 20, lambasted the Department of Energy (DOE), after one of its officials admitted that there is no power crisis in 2015 but only a shortage in reserve power.

Managing fame and celebrity WHO is Marlon Rivera? This is a question not easily answered, as the man has several hats. A teacher, fashion designer, copywriter, makeup artist, production designer, costume designer and director, Rivera also has a flower shop and events company.

Not surprisingly, Rivera is used to being asked how he manages to be so many things at once. His answer is simple: “People always ask me this question, and I’ve always given the same answer—‘Kung gusto may paraan, kung ayaw may dahilan’ [If there’s a will, there’s a way, if not, there’s a reason].”

His ability to handle several creative pursuits began early—as a student, Rivera was already working as a props man at the Cultural Center of the Philippines (CCP).

“The circumstances of my life have been built around having multiple interests. Doing more than one thing has always been my brand equity,” said Rivera, who grew up all over the Philippines. Because where he lived depended on where his father, a civil engineer, would have projects. Rivera became used to moving and presenting himself in a different way.

However, all the moving around did not seem to affect his capacity to stay in one place for long. Rivera worked in advertising from 1988, until he resigned from his post at Publicis Manila in 2013. Before advertising became his staple career, he also worked at Regal as an intern, and at Channel 4 as a production assistant.

“When I decided to go into fashion, I already knew how to sketch and do patterns, from breaking things apart and learning how to cut them.”

Rivera shared how a film changed his life. “When I was young, I loved the natural sciences. I really thought I was going to be a doctor. Then I saw fame, and it changed everything for me. I wanted to get into the performing arts. I went to the CCP, did workshops at Bulwagang Gantimpala, and directed plays for the culminating activity,” he told adobo in a previous interview.

It is his thirst for learning that fuels his passions. Rivera said that while his ability to switch roles may look effortless, the hard work to make things happen actually begins much earlier. “When I decided to go into fashion, I already knew how to sketch and do patterns, from breaking things apart and learning how to cut them. But you don’t want to tell that to people. You want to come out like, ‘I just did it today.’ But actually that’s not true.”

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PHOTOS BY MISS CHARLIZE

Monday, November 17, 2014 Vol. 10 No. 39

Tax perks for ILP participants C

GIVE THE GIFT OF BEAUTY »D4

BusinessMirror

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

n

CONGRESS TO RUSH JOINT RESOLUTION SO AQUINO CAN GET EMERGENCY POWERS THIS MONTH

the fierce and the fearless EAR God, make our families realize that problems are easier to cope with when Bible counsel is applied. In fact, applying such counsel is the key to family happiness. May we open our Bible for the following teachings: Husbands need to love their wives as their own bodies (Ephesians 5:25-29); Wives should love their family and respect their husbands (Titus 2:4,5); Parents need to love, teach and protect their children (Deuteronomy 6:4-9); Children need to obey their parents (Ephesians 6:1-3). Oh God, we pray that our families are happy with Your grace and love. Amen.

A broader look at today’s business

yeing Chinese assertiveness, President Barack Obama and the prime ministers of Japan and Australia committed on Sunday to deepen their military cooperation and work together on strengthening maritime security in the Asia Pacific.

The meeting, the first since 2007 among leaders of the three allies, risked antagonizing Beijing after a week when Obama reached a surprising level of consensus with Chinese President Xi Jinping on climate change and trade; and Japan and China took steps to improve their relationship.

China has viewed Obama’s efforts to deepen alliances with other countries in the region, particularly on security issues, as an attempt to counter Beijing’s rise.

In a joint statement following the meeting, the three leaders said they had agreed to“deepen the already strong security and defense cooperation” between their countries.

They also agreed to work on boosting “maritime-security capacity building” in a region rife with disputes between China and its neighbors over claims to waters and islands.

However, there were no announcements on specific military exercises or new troop deployments within the region.

White House officials insisted that the three-way talks on the sidelines of the Group of 20 economic summit were not meant to send a message to China. But in advance of Obama’s meeting with Australian Prime Minister Tony Abbott and Japan’s Shinzo Abe, the president pressed China to “adhere to the same rules as other nations— whether in trade or on the seas.” “By virtue of its size and its remarkable growth, China will inevitably play a critical role in the future of this region,” Obama said on Saturday in a speech at the University of Queensland. “And the question is, what kind of role will it play?”

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PESO exchange rates n US 44.8730

Continued on A12

lantern-lighting ceremony

Resorts World Manila (RWM) CEO Stephen Reilly (from left), RWM President Kingson Sian, Pasay City Rep. Emi Calixto-Rubiano, Pasay City Mayor Antonino Calixto and RWM Chief Hotel Operations Officer Scott Sibley lead the “Giant Parol Lighting” at RWM to kick off the Grand Fiesta celebration for the season. ALYSA SALEN

PLDT corners 70 percent 4M PEOPLE of fixed-broadband market TOOK CEB FLIGHTS IN JULY-SEPT T

By Lorenz S. Marasigan

he Philippine Long Distance Telephone Co. (PLDT) continued to dominate the fixed-broadband market, cornering nearly three quarters of the market.

The digital-services group of the Philippines’s largest telecommunications company maintained its leadership in the fixed-broadband market, with a 70-percent market share as of end-September.

The said print is more than triple of that of its nearest competitor.

Subscriber base grew by a robust 18 percent in the third quarter year-on-year, bringing its total broadband-subscriber base to nearly 1 million.

“The PLDT Group’s fixed-broadband businesses generated P10.2 billion in revenues for the first three quarters of the year, up by 12 percent from P9.1 billion in the same period in 2013,” PLDT President and CEO Napoleon L. Nazareno said.

“We are glad to know that majority of the broadband market prefers our products and services, which is primarily due to the PLDT Group’s integrated approach of providing a range of high-quality voice, data and multimedia services to our customers,” he added.

For his part, PLDT Executive Vice President Ariel P. Fermin said his group, PLDT HOME,

NAZARENO: “We are glad to know that majority of the broadband market prefers our products and services, which is primarily due to the PLDT Group’s integrated approach of providing a range of high-quality voice, data and multimedia services to our customers.”

T

expects sustained growth in broadband with new revenue streams through various services offered in PLDT HOME Telpad and TVolution.

“The increased multimedia usage in Filipino homes is evident as our Cignal over Fibr subscribers expanded fivefold this year,” he said.

In September this year PLDT also grew its Time-Division Duplex-Long Term Evolution (TD-LTE) network to over 400 cell sites to fortify its leadership in providing high-speed Internet services to more Filipinos nationwide.

“The continuous expansion of our TD-LTE network will further strengthen connections at home, especially those who live in remote towns and provinces. TD-LTE will provide them access to the Internet, and allow them to experience the benefits of broadband technology,” Fermin said.

PLDT HOME Ultera, one of PLDT’s latest

he airline of tycoon John L. Gokongwei flew more passengers in the first nine months of the year, propelled by increased presence in key markets, sustained demand for air travel, and industrycapacity rationalization.

Cebu Pacific (CEB) also saw a hike in passenger volume in the third quarter of the year, posting a 16.8-percent increase to 4 million passengers from, 3.4 million customers flown in the same period last year.

The airline carried a total of 12.5 million passengers, from January to September 2014, an increase of 14.8 percent year-on-year.

“The Cebu Pacific Air group is on track to meeting our target of serving 17 million passengers this year. CEB’s growth in Q3 2014, was driven by increased presence in key markets, sustained demand for air travel, and industry-capacity rationalization,” Cebu Pacific Vice President for Corporate Affairs Jorenz T. Tañada said.

See “PLDT,” A12

Continued on A12

n japan 0.3877 n UK 70.5089 n HK 5.7866 n CHINA 7.3265 n singapore 34.7556 n australia 39.2144 n EU 55.9836 n SAUDI arabia 11.9598 Source: BSP (14

November 2014)

A2

News BusinessMirror

Monday, November 17, 2014

news@businessmirror.com.ph

Tax perks for ILP participants Warren said to oppose Obama Continued from A1

Luzon “having a maximum projected shortfall of 1,004 megawatts [MW], of which 600 MW is needed to meet the required dispatchable reserve, and 404 MW is needed to meet the required contingency reserve. Corollary, a total of four weeks of yellow alert is projected for the critical period.”

It empowers the DOE to “administer and implement the remedial measures under this joint resolution, as well as the subsidy for the compensation from the actual energy generated to address the power shortage.”

It also calls for the “adoption and execution of energy efficiency and conservation measures” in both public and private sectors.

“All national government agencies and local government units are hereby authorized to suspend the operability of pertinent laws, rules and regulations including, but not limited to, mitigating measures adopted for the Wholesale Electricity Spot Market under Republic Act 9367,” the joint resolution further stated.

“All entities with self-generating facilities [SGFs] shall participate in the ILP on or before December 31 to stimulate additional generation capacities: Provided that the government shall reimburse the owners of SGFs or backup generators for fuel expenses and reasonable recovery for their use in accordance with the ERC rules,” the House measure said.

“Upon submission of the energy efficiency and conservation program, as certified by the DOE, all government offices and institutions are authorized to retrofit their offices and buildings with, among others, energy-efficient LED bulbs, air-conditioning units with inverters and solar-energy systems, subject to emergency procurement procedures,” the joint resolution mandated.

Senate and Congress are moving together to deliver the emergency power to the President. We are in discussion with Senator Osmeña, who chairs the Senate Energy Committee, and he is willing to support the joint resolution,” Umali said over the weekend.

Speaking to reporters, Umali said the special power to be granted to the President will cut down red tape and will grant “tax relief” to private companies that will take part in the ILP. These incidents, he said, could delay and make it impossible for the Aquino administration to put in place timely measures to avert a crippling electricity shortage in Luzon in summer next year.

“On emergency powers, we really need that to address tax-relief concerns of potential ILP participants.

But we need a law on this. However, enacting a law takes a long time. So, what we need is special power for the President,” Umali said. Umali added that the President had requested for a “fast-track solution” to stop the expected power crisis from hitting Luzon; and that is exactly what the emergency powers will grant him.

The House version of the joint resolution principally authored by House Speaker Feliciano Belmonte seeks to grant the President “authority to establish additional power-generating capacity to ensure the energy requirements of the country during periods of very tight energy supply as a strategic response to the need for specific, focused and targeted acquisition of additional energy capacities to meet the imminent power shortage in the Luzon grid due to the Malampaya turnaround, increased level of forced outages of power plants and delays in the commissioning of committed power projects.”

It seeks to address the problem of

This prompted both Houses, which were earlier eyeing to pass the joint resolution on October 29, to drop the DOE’s draft joint resolution, which calls for the purchase or lease of generator sets (gensets).

The congressmen said after the hearing that they will no longer rush the approval of the resolution. Had this proposal been pursued, at least P9 billion will be shelled out to purchase gensets and another P6 billion to rent these.

However, the committee filed last Friday Joint Resolution 21, authorizing the President “to provide for the establishment of additional power-generating capacity as mandated by Republic Act 9136, also known as the Electric Power Industry Reform Act [Epira], to effectively address the projected shortage of the supply of electricity in the Luzon grid from March 12 to July 2015.”

T he resolut ion prov ides t hat “additional generating capacity shall be sourced from the ILP, [the] fast-tracking of committed projects and plants for interconnection and rehabilitation.”

The ILP seeks to encourage heavy users of electricity to run their own gensets during peak-demand periods next year instead of getting their supply from the Luzon grid. The electricity that would not be taken from the grid would be available to household and small users, preventing a rotating blackout.

Umali said the success of the ILP will largely depend on the cooperation of the malls, factories and other private establishments to use their own gensets when the National Grid Corp. of the Philippines expects the supply of electricity to fall short of demand.

“Since the President wants to fasttrack solution, we need to pass this within November. Now, both the

3-DAY EXTENDED FORECAST NOVEMBER 17, 2014 | MONDAY TAIL-END OF A COLD FRONT AFFECTING NORTHERN LUZON. EASTERLIES AFFECTING MINDANAO.

METRO MANILA

pick of Weiss to treasury job b anker Antonio Weiss finds himself in an unenviable position. He’s caught in a brewing fight between the White House and a prominent Democratic lawmaker over the scope of the finance industry’s influence in Washington.

US Sen. Elizabeth Warren has decided she won’t support Weiss’s nomination for a top post at the treasury department, a person familiar with her position said on Friday. The opposition stems as much from her view that President Barack Obama’s administration is too cozy with Wall Street as displeasure with work Weiss did at Lazard on deals

that helped US companies cut taxes, known as inversions, said the person, who asked not to be named because Warren hasn’t commented on Weiss publicly.

Warren’s move came a day after Senate Democrats elevated her to a leadership position in their caucus, an ascent that followed her repeated criticisms that working families were struggling, while corporations and executives prosper. The risk for the White House is that her opposition leads to a groundswell among other Democratic lawmakers that imperils Weiss’s prospects. Bloomberg News

OECD. . . continued from a12

of income-tax regimes employed by the different countries. Hence, the BEPS becomes an issue of fairness, especially for developing countries which expect revenues from corporate income taxes of multinationals which make profits in their respective jurisdictions.

Henares said tax policies and enforcement strategies must be constantly updated in an increasingly globalized world.

“Living in an increasingly globalized world requires governments to adapt and update tax policy and enforcement strategies. International cooperation is key if we want to raise sustainable amounts of revenues to continue funding growth and invest-

ments to our people and country,” she said.

The OECD’s strategy against BEPS has three main pillars: the coherence of corporate tax at the international level; the realignment of taxation and substance; and transparency coupled with certainty and predictability. The OECD seeks to address BEPS through an international instrument that will give countries the tools they need to ensure that profits are taxed, where economic activities generating the profits are performed and where value was created. The OECD initiative against BEPS plans to roll out outputs by September 2015 and unveil the multilateral instrument sometime in December 2015.

First Gen’s. . . continued from a12 with German bank Kreditanstalt für Wiederaufbau (KfW) for a $265-million loan facility to partly finance the San Gabriel natural gas-fired power plant. The balance was sourced from loans and internally generated funds.

“Financing for the second unit is still being discussed with the same supplier. It is also pos-

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sible that we will tap KfW for Santa Maria,” Puno said.

First Gen is one of the largest Filipino-owned independent power producers in the country with an existing plant portfolio of about 2,763 MW of generation assets that primarily utilize indigenous, clean and/or renewable fuels.

3-DAY EXTENDED FORECAST

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23 – 32°C

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TUGUEGARAO 21 – 29°C

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LAOAG

BAGUIO LAOAG CITY 22 – 31°C

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BAGUIO CITY 15 – 22°C SBMA/CLARK 23 – 31°C

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TAGAYTAY CITY 20 – 28°C

SUNRISE TAGAYTAY

METRO MANILA 22 – 32°C

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LEGAZPI CITY 25 – 32°C

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TACLOBAN CITY 24 – 31°C

PHILIPPINE AREA OF RESPONSIBILITY (PAR)

PUERTO PRINCESA CITY 24 – 30°C

ILOILO/BACOLOD 24 – 31°C

LEGAZPI

PUERTO PRINCESA

24 – 31°C

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HALF MOON NEW MOON

NOV 14

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SUNSET

11:16 PM

NOV 22 8:33 PM

LOW TIDE MANILA HIGH TIDE SOUTH HARBOR

12:15 AM

0.46 METER

4:55 AM

0.58 METER

Partly cloudy to at times cloudy with isolated rainshowers

METRO CEBU 25 – 32 °C CAGAYAN DE ORO CITY 24 – 31°C

ILOILO/ BACOLOD

Partly cloudy to cloudy skies with isolated rainshowers and/or thunderstorms

24 – 32°C

25 – 32°C

25 – 33°C

Cloudy skies with isolated rainshowers and/or thunderstorms

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

ZAMBOANGA CITY 24 – 33°C

METRO DAVAO 24 – 31°C

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A4 Monday, November 17, 2014 • Editor: Dionisio L. Pelayo

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P-Noy won’t join Pope Francis in Tacloban visit?

P

By Butch Fernandez

RESIDENT Aquino has yet to confirm whether he will join Pope Francis in visiting Supertyphoon Yolanda victims in devastated Leyte province, when the Catholic Church’s highest leader comes to the Philippines next year, but a Palace official indicated it is not likely to happen.

Palace Deputy Spokesman Abigail Valte confirmed over the weekend that a check of Mr. Aquino’s schedule does not show the President accompanying Pope Francis.

The pontiff had expressed interest in paying Tacloban a visit to meet with Yolanda survivors, some of whom still live in tents and makeshift dwellings.

The Catholic Bishops’ Conference of the Philippines was reported to have released in advance the pope’s itinerary for his upcoming trip to the largely Catholic country, with Tacloban listed among the places he wished to go to.

Asked if Mr. Aquino, who is chief host of the visiting Church leader, has plans to accompany Pope Francis for the Tacloban trip, Valte re-

plied that based on the schedule she saw, the pope will go there without the President.

I haven’t seen such item in their schedule, Valte said in Filipino over a government radio station.

I don’t see that engagement happening, she added also in the vernacular.

“It’s His Holiness that [sic] will go to Tacloban,” is what Valte said she saw in the President’s schedule.

Mr. Aquino also skipped Tacloban last week, opting to mark the first anniversary of the killer typhoon in nearby Guiuan, Eastern Samar, where Yolanda, internationally known as Typhoon Haiyan, first made landfall on November 8, 2013.

There was widespread speculation that the presidential party had

deliberately skipped Tacloban, where the so-called People’s Surge movement of Yolanda survivors had periodically staged rallies denouncing government “slowness” in rehabilitating typhoon-hit areas, despite the reported influx of billions in foreign aid.

A few days before the Yolanda anniversary, Secretary Panfilo Lacson also had a media word war with Tacloban Mayor Alfred Romualdez on various issues related to release of funds and priorities in rehabilitation. Lacson is the Cabinet officer in charge of recovery and rehabilitation of areas hit by Yolanda.

It was Romualdez, who, a few days after Yolanda struck, also had a publicized tension-filled meeting with Interior Secretary Manuel Roxas III, who was quoted reminding Romualdez that “the President is an Aquino, and you are a Romualdez.”

That remark was widely seen as referring to the historical animosity between the two political clans during the term of the late dictator Ferdinand Marcos. The late President Marcos was the husband of the mayor’s aunt, Rep. Imelda RomualdezMarcos. The most vocal opposition leader then was the father of the incumbent president, the late Sen. Benigno Aquino Jr. Some observers are watching closely whether President Aquino will join Pope Francis in Tacloban because during the last visit by a pope to the Philippines in 1995, then-President Fidel V. Ramos, though a Protestant, joined Pope John Paul II at the concluding event of World Youth Day in Rizal Park.

FLOUR POWER

A man prepares to bake bread inside a shopping mall in Alabang, south of Manila, on November 15. Trade Undersecretary Victorio Mario Dimaguiba announced last week that bakers have agreed to a reduction in the prices of their products by as much as 50 centavos.

The price cuts, which will take effect this month, stemmed from a drop in the cost of flour called Harinang Pinoy, which is the main ingredient for making bread loaf and salted bread. The price of Harinang Pinoy has dropped to P730 a kilo in mid-October from P750. Nonie Reyes

AFP readying for clashes with Abu Sayyaf Group

By Rene Acosta

T

HE military is gearing up for another “law enforcement” operation against the Abu Sayyaf Group (ASG) in Sulu, particularly against the more than 100 ASG members who clashed with elite Army Scout Rangers on Friday, when at least 30 casualties were recorded.

The firefight over the weekend was the first in three weeks in the province, after the ASG released a German couple.

After that, a military official said government troops commenced a full-blown operation against the terrorists in Sulu.

“There are a lot of enemy sightings, and we are making plans so that we could hit them directly. That’s our expectation, that we could hit them directly soon, but we are just being patient,” said Col. Allan Arrojado, commander of the military’s joint task group Sulu.

“We’re seeing another round of firefight, especially since we learned they have a lot of wounded colleagues and they could not go down [from the mountain],” he added.

The military’s task group commander in Sulu said at least 10 ASG members killed have been identified after Friday’s fighting. At least 18 more were wounded, according to Arrojado.

On the other hand, five soldiers who are members of the elite Scout Ranger were also killed, while some more were wounded, including 1st Lt. Michael Asistores.

The firefight began at 2 p.m. on November 14 at the forest lair of the ASG at the foot of Mount Tunggul and the village of Bud Bunga, Talipao, which is near the boundary of the municipality of Patikul in the north.

The Rangers started trading fires with the bandits using assault rifles and machine guns.

Unknown to them, however, all the surrounding hills nearby were occupied by at least 300 bandits, led by five alleged leaders of the ASG: Radulan Sahiron, Hairullah Asbang, Jurim Hussein, Hatib Sawadjaan and Juli Ekit.

It was another platoon of soldiers, led by Lt. Dante Espiritu, that spotted and first engaged the bandits in a makeshift hut. Espiritu later radioed the team of Asistores.

Asistores said Espiritu called for reinforcement minutes into the firefight, during which two of his patrol members were wounded.

While approaching the encounter site about 20 minutes later, Asistores and his men spotted the bandits, who attempted to outflank the position of Espiritu and his men, just a hundred meters away.

Asistores said he was surprised upon seeing the bandits assaulting his position despite being raked with gun fire.

“The young-looking bandits were very daring and unmindful of our gunfire. They kept running toward our position despite being hit repeatedly. They were very ferocious and daring,” he said.

Soldier slain before Aquino slashes real remitting year-end property taxes on power producers bonus to family

A

SOLDIER was shot dead on Sunday by three unidentified gunmen while on his way to a bank so he can remit a year-end salary bonus to his family.

Pursuit operations are now going on for those who killed Cpl. Zaldy Bengua of the Army’s 9th Infantry Battalion, who was shot by the men armed with long firearms at Barangay San Antonio, Barcelona, Sorsogon, at around 7 a.m. on Sunday, police reports said.

Bengua was on his way to the town center with his fellow soldier on a tricycle when the armed men, whom the military suspect to be members of the communist New People’s Army (NPA), accosted their vehicle.

Both Bengua and his companion, who was not identified, were in civilian clothes. Bengua was riding behind the tricycle driver, while his buddy soldier was inside the sidecar with a mother and two small children. Only Bengua was armed with a pistol, according to the report.

Bengua drew his gun but was shot first by the suspects. He died on the spot.

His buddy was able to escape after he provided cover to the mother and children. The suspects escaped from the scene after the incident.

Col. Cesar Idio, 903rd brigade commander, said they have launched pursuit operations to capture the suspects whom, he believes, are still near where Bengua was shot.

“This incident, while isolated, will further intensify our efforts to continue the aggressive conduct of our focused military operation in the affected areas to win the peace and prosperity in the brigade’s area of responsibility covering Sorsogon and Masbate provinces,” Idio added. Rene Acosta

P

RESIDENT Aquino has signed Executive Order (EO) 173 granting reduction and condonation of real-property taxes and interests, as well as penalties assessed on the power-generation facilities of independent power producers (IPPs).

Communications Secretary Herminio B. Coloma Jr. said on Sunday the EO aims to relieve the IPPs from payment of fines, penalties and interests, such as deficiency and real-property tax liabilities.

Coloma announced over government-owned Radyo ng Bayan that Mr. Aquino signed the order on October 31.

Coloma said the order also took into consideration that local government units are collecting real-property taxes from IPPs, which will eventually result to massive liabilities of the National Power Corp. (Napocor) and which could lead to an increase or spike in the cost of electricity.

Pursuant to the EO, Coloma said real-property taxes imposed by local government units for all years up to 2014 on “property, machinery and equipment actually and directly used by IPPs for the production of electricity under build-operate-transfer contract will be reduced to an amount equivalent to the tax due, if computed based on an assessment level of 15 percent of the fair market value of the property, machinery and equipment depreciated at the rate of 2 percent per annum less any amount already paid by the IPPs.” ”The same executive order also stated that all fines, penalties and interests on such deficiency, real-property tax liabilities are also hereby condoned and the concerned IPPs are relieved from payment thereof,” Coloma said. PNA

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Editors: Vittorio V. Vitug and Max V. de Leon • Monday, November 17, 2014 A5

PHL set to OK Asean-India pact on services, investments

T

By Catherine N. Pillas

he Philippines has committed to give its stamp of approval to the Asean-India Free Trade Agreement (FTA) in Services and Investments soon as sought by officials from the South Asian country at the recently concluded 25th Asean Summit in Myanmar.

“India asked for the formal concurrence of the Philippines for the Asean-India Free Trade Agreement.

The Philippines is the only country that has yet to give its concurrence,” Trade Secretary Gregory L. Domingo said.

The 12th Asean-India Summit was held during the second day of the broader Asean summit.

Domingo said the Philippines has not given its concurrence to the deal as the Department of Trade and Industry still needs to get the approval of all government agencies concerned.

The trade chief said India understands that the delay is only procedural and that no issue stands in the way of the approval.

Negotiations for the services and investment agreement of the Asean-India FTA concluded in 2012 and the pact was signed

by India early in September. According to foreign news sources, during the summit in Myanmar, President Aquino assured India’s Prime Minister Narendra Modi that the process for inking the deal is progressing.

The services agreement will pave

the way for freer movement of labor and investments between the 10-member bloc and India and, more significantly, will allow India to capitalize on a broader market for its strong service sub-industries, such as information technology, telecommunications and finance.

The agreement will build on the existing free trade in goods agreement with India, which was implemented in 2010.

India-Asean trade is currently pegged at $81 billion, with a target to boost this figure to $100 billion by 2015.

Tanduay Distillers loses ‘Ginebra’ case at Court of Appeals again

By Joel R. San Juan

T

HE Court of Appeals (CA) has found Lucio Tan’s beverage company Tanduay Distillers Inc. (TDI) liable for unfair competition and infringement for using San Miguel Corp.’s “Ginebra” mark in the manufacture and marketing of its liquor brand “Ginebra Kapitan.”

In a 47-page ruling penned by Associate Justice Rodil Zalameda, the CA’s Special Sixteenth Division reversed and set aside the October 5, 2012, ruling issued by the Regional Trial Court (RTC), in Mandaluyong City, which dismissed Ginebra San Miguel Inc.’s (GSMI) complaint for unfair competition, infringement and damages against TDI. “The mere use of Ginebra by Tanduay in its Ginebra Kapitan gin products is trademark infringement in itself,” the CA declared.

The appellate court noted that its findings on TDI’s liability for trademark infringement and unfair competition is consistent

with the decision dated August 15, 2013, rendered by the Special Former Thirteenth Division on a similar case involving the same parties.

Thus, the CA explained, it decided to merely adopt the Special Former Thirteenth Division’s dispositive portion, which directed TDI to pay GSMI 50 percent of the total gross sales of its Ginebra Kapitan products from the time of the filing of the case before the RTC in Mandaluyong City in 2003 up to the finality of the judgment.

It also ordered TDI to pay GSMI the amount of P2 million as exemplary damages and P500,000 as attorney’s fees and remanded the case to the RTC in Mandaluyong for the purpose only of the accounting of the gross sales of TDI’s Ginebra Kapitan and for the determination of the amount of actual and compensatory damages to be awarded to GSMI. Furthermore, the CA ordered TDI to remove from the market all its gin products bearing the mark Ginebra, including all bottles, la-

bels, signs, prints, packages, wrappers and advertisements bearing the said mark.

The TDI was also directed to cease and desist from using Ginebra in any of its gin products.

The CA ruled that, through its long use in the country, Ginebra has become “singularly synonymous” with GSMI’s gin products and GSMI, itself, as the manufacturer, thus, the mark has already acquired a secondary meaning in trademark laws.

“After almost two centuries of usage, effective tri-media promotions and advertisements has bestowed upon Ginebra secondary meaning exclusively identifiable to GSMI and its gin products,” the CA added.

The CA also pointed out that TDI committed infringement in its use of the “Ginebra” mark and unfair competition in the way it designed and represented its bottle and label to the consumers.

“There is no dispute that the shapes of the bottles are similar.

Even the shapes of the labels are almost, if not totally, identical. Look-

ing at the bottles, it becomes apparent that Tanduay has designed its bottle and label to somehow make a colorable similarity with the bottle and label of Ginebra San Miguel,” it added.

On August 2 the CA’s Eleventh Division granted GSMI’s petition seeking the nullification of the decision rendered by the Office of the Director General of the Intellectual Property Office on September 24, 2013, which approved the application filed by Tanduay for the registration of the mark Ginebra Kapitan.

In its application for registration, Tanduay insisted that Ginebra is a generic word, which means “gin,” and, thus, could not function as a trademark and cannot be registered for exclusive use of any company.

It added that GSMI would not be damaged by its registration and use of the mark Ginebra Kapitan on its gin product since the dominant portion of the mark would be “Kapitan,” which is not identical to the “San Miguel” trademark of the petitioner.

In the ruling in favor of GSMI, the

appellate court gave credence to its argument that the term Ginebra had long become an iconic trademark, which is exclusively associated by the Filipino drinking public with its gin products.

The CA gave weight to surveys conducted by GSMI, which showed 90 percent of gin drinkers in Luzon gave the top-of-mind responses “Ginebra San Miguel,” “San Miguel,” “Ginebra Blue” and “La Tondeña” when shown a flashcard with the word Ginebra; and at least half of those surveyed wrongly identified Ginebra Kapitan to the product of the petitioner.

“What is clear, however, based on the record, is the fact that the relevant public perceives the word Ginebra as the gin product of the petitioner,” it added.

Furthermore, the CA said it agrees with the petitioner that the term Ginebra had already acquired a secondary meaning under Section 123.2 of the Intellectual Property Code of the Philippines, since it has become associated with the source of goods rather than with the goods themselves.

Neda wants improved monitoring of recovery efforts

By Cai U. Ordinario

BALISACAN: “It is necessary to ensure that interventions are not only making an impact, but are making an impact for the long term and for all Filipinos.”

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uilding back better after disasters will require careful monitoring of emergency responses, according to the National Economic and Development Authority (Neda).

Neda Director General and Economic Planning Secretar y Arsenio M. Balisacan said monitoring in emergencies can provide crucial information for the government to improve crisisresponse and decision-making in the short and long term.

“In emergencies, providing credible and useful information is imperative in order to ensure accountability and the incorporation of lessons learned into the decision-making process,” Balisacan said.

“The final aim is always to improve future interventions, while lessening the need for the same by building back better,” he added.

Balisacan said it is necessary to determine the efficiency and effectiveness of government interventions. This will enable the government to assess if the funds

used and effort exerted helped the affected population.

“It is necessary to ensure that interventions are not only making an impact, but are making an impact for the long term and for all Filipinos,” Balisacan said.

To aid the relief, rehabilitation and reconstruction efforts of the public and private sectors, the Neda has produced the Reconstruction Assistance on Yolanda (RAY), which was published in December 2013 and a follow-up document, RAY Implementation for Results (RAY I4R), published in September this year.

R AY provided a preliminary assessment of damage, loss and

needs following Yolanda. It also outlined the way forward, including core principles and inst it ut ion a l a r r a n ge me nt s for short- to medium-term response.

Meanwhile, the R AY I4R serves as the overarching results framework for recovery and rehabilitation in Supert y phoon Yol a nd a-a f fected areas. Both these documents provided inputs to the recently approved Yolanda Comprehensive Rehabilitation and Recovery Plan of the Office of the Presidential Assistant on Rehabilitation and Recovery.

Data from the Asian Development Bank showed that Yolanda affected 16 million people, or 3.4 million families, in Central Philippines.

The typhoon damaged more than 1 million homes; 248 transmission towers; 33 million coconut trees; 600,000 hectares of agricultural land; and over 1,200 public structures, like provincial, municipal, and barangay halls and public markets.

DTI to formalize bid to give Yolanda made goods duty-free access to US

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ith the US midterm elections done, the Philippines’s trade department can now move forward with its proposal to seek duty-free access for goods produced in areas hit

by Supertyphoon Yolanda (international code name Haiyan).

Trade Secretary Gregory L. Domingo, in a text message to reporters, said the Department of Trade and Industry (DTI) already has prepared a draft bill for the proposal for several months now, but the Philippine government had to “wait until the elections [in the US] were done to find sponsors for the bill.”

The US midterm elections wrapped up in early November, and the trade department can now scout for

sponsors of the draft bill, unless changes will be introduced to the bill.

A proposal for a special trade scheme, with a period of seven to 10 years, was floated a year ago by the DTI in the wake of Yolanda.

The proposal is part of the government’s effort to speed up rehabilitation and recovery of the devastated area in Central Visayas. The measure is meant to entice manufacturers to set up operations in the damaged provinces to enjoy the perks of duty-free entry to the US. The trade chief had earlier said the proposal could benefit manufacturers of handicrafts, garments and food items. Catherine N. Pillas

Yolanda also damaged 305 kilometers of farm-to-market roads; approximately 20,000 classrooms;

and over 400 health-care facilities, such as hospitals and rural health stations.

First Gen to prioritize Bubunawan hydroplant

By Lenie Lectura

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opez-owned First Gen Corp. will prioritize the construction of its 8-megawatt (MW) Bubunawan hydro power project, one of the five hydro facilities it plans to put up in Mindanao.

“We are prioritizing Bubunawan. We hope to start construction by second half of next year,” First Gen President Francis Giles Puno said.

The Department of Energy (DOE) has issued a certificate of commerciality to First Gen’s hydro projects. The other four include the eight-MW Tumalaong, 20-MW Tagoloan project, 14-MW Cabadbaran hydropower plant and 30-MW Puyo plant.

Giles said the construction of hydro power plants takes longer than the construction of other renewable-energy facilities. “But the challenge is how do you construct it.

It is really a challenging construction. Roads, tunnels, I think it requires an eightkilometer tunnel.”

Nonetheless, Giles said, the company is “in the position that we can start construction next year. It takes about 24 months.”

The Bubunawan hydro project costs $100 million.

First Gen is the leading clean and renewable-energy company in the Philippines.

Its hydro projects are housed under First Gen Mindanao Hydro Power Corp.

Tourism BAKHAWAN AKLAN’S PRIME ECOTO A6 Monday, November 17, 2014 • Editor: Alvin I. Dacanay

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S    L R. G

F there is one thing that Aklan province can be proud of and can contribute to the rest of the Philippines—besides the huge economic gains brought by the island of Boracay, of course—it’s its highly successful ecotourism project.

As huge bodies of water surround the country’s 7,107 islands and leave coastal settlements vulnerable during natural calamities, a group of Kalibonhons in the capital town of Kalibo has found a solution that could withstand the destructive forces of nature: it has converted a mudflat into a beautiful mangrove forest, one that serves as the town’s first line of defense against storm surges.

This “solution” has become a tourist attraction known as Bakhawan Ecopark and Research Center. The word bakhawan means “mangrove” in the local language.

Wide mudflats used to sprawl on the coast of Kalibo’s Barangay New Buswang, which made the village prone to floods and storm surges during weather disturbances. The local government; the Department of Environment and Natural Resources; and non-governmental organizations, including the United Services Welfare Assistance Group and the Kalibo Save the Mangroves Association (Kasama), addressed the problem in 1990 by turning the muddy shoreline into a mangrove reforestation site. They started with 50 hectares, which later grew to more than four times that size as the project progressed.

The community-based project did not only address the barangay’s flood problems, but also gave its participants a source of livelihood. Kasama members/families were assigned areas for them to maintain and manage.

In return, they receive salaries and are allowed to harvest mud crabs and shellfish in the areas given to them.

The mangrove-reforestation project has served local communities in two ways: it provided a sustainable solution against flooding and a means to generate income.

Kalibo’s prime ecotourism attraction TODAY Bakhawan Ecopark stretches into a 220-hectare mangrove forest and serves as one of Kalibo’s prime tourist attractions. During the recent Manila Media Familiarization Tour hosted by the Department of Tourism, media representatives enjoyed the ecopark’s relaxing ambiance and fresh air while strolling on the 1.3-kilometer bamboo and wooden trail that runs deep into the forest—which is teeming with different species of mangroves and wildlife—and ends with a scenic view of the beach. Indeed, a perfect hideaway where one could commune with Mother Nature.

The ecopark also serves as a sanctuary for different types of birds and marine creatures. Other features of the ecopark include a watchtower, souvenir shop, canteen, massage area, charcoal briquetting, picnic huts and a Center for International Mangrove Studies.

The media representatives also had the chance to witness how a tamilok, or wood worm, are gathered from the bakawan trees and eaten straight from the tree’s bark. According to locals, tamilok—which tasted like an oyster—is an aphrodisiac, and gathering them has become a major activity visitors.

Dubbed the Philippines’s most successful mangrove reforestation project, the Bakhawan Ecopark has set a benchmark for a greener Philippines, earning local and foreign recognition.

For one, the United Nations’s Food and Agriculture Organization hailed it as one of the exemplary forests managed in the entire Asia-Pacific region. It has also been awarded as the Golden Eagle award for excellence in environmental preservation.

On January 22 the Provincial Capitol of Aklan, headed by its Economic Enterprise Development Department, had 8,000 new mangrove propagules planted on a two-hectare area of the ecopark.

The activity was aimed at minimizing climate change and to replace the mangrove trees that were destroyed by Supertyphoon Yolanda (international code name Haiyan) last November.

PART of Bakhawan Ecopark

Other sights to see

ASIDE from Boracay, Aklan is famous for its Ati-Atihan Festival. One of the oldest and grandest festivals in the Philippines, the Ati-Atihan traces its roots to as far as 1212 AD. Every January Kalibo comes alive as dancers wearing feathered headdresses and covered in soot to portray darkskinned Atis, dominate the streets and shout “Viva Señor Santo Niño! [Long live the Holy Child!]” and “Hala bira!

[Go for it!]”

Experience what Aklan has to offer and enjoy its laidback charms through its interesting destinations and activities: 1. Take a dip in the crystalclear waters of Jawili Falls. Jawili Falls are made up of seven waterfalls and emerald green basins. It may not look impressive at first, but there’s no denying its uniqueness. The waters in Jawili’s dark natural pools cascade like gigantic steps carved from a mountainside. Water pours from each basin, creating numerous waterfalls in the process.

Foreign tourists vacationing in Boracay usually drop by the falls via the arranged tours offered in the famed island-resort. The falls are also a good spot for picnicking with family or friends. The place has been developed for the convenience of tourists; cottages and shower rooms are available, and a modest restaurant is open.

2. Visit Aklan’s oldest church.

At more than 110 years old, Saint John Nepomocene Church in Tanglan town is considered as Aklan’s oldest church. Its limestones are said to be quite similar with those used on the Saint Thomas of Villanova Church in Miag-ao, Iloilo province.

Historical records say the people of this municipality built this church—named in honor of the patron saint of the Tangalanons—during the Spanish colonial era. They also say men, women and children were forced to carry on their heads, from Barangay Afga to Poblacion, the limestone bricks that were used in the construction of the church, which lasted for almost 28 years.

These people were not compensated for their efforts; the only consolation they got was regarding these efforts as an offering to God. During our visit, we found the church in a dismal state, which was in stark contrast to the newly built municipal hall adjacent to it.

We wondered: How was the municipal government able to construct a new building while it left a historic

JAWILI Falls

SAINT John Nepomocene Church

house of worship in disrepair.

3. Experience Christmas all year round at Jojo’s Christmas Cottage. Found at the heart of Sampaguita Gardens, Jojo’s Christmas Cottage is a three-story Victorian mansion that celebrates Christmas all year round. Inside are various Christmas dolls, figurines, trees and decorations, as well as a Precious Moments collection, a lifestyle brand created by American artist Samuel J. Butcher, who has spent most of his life in the Philippines.

Owned by Butcher himself, he named his property Sampaguita because of his fondness for little kids selling sampaguita. Jojo’s Christmas Cottage was named after a member of Butcher’s loyal staff.

The sprawling 2.6-hectare property also feature 48 guestrooms and suites; three restaurants; convention facilities; a business center; a spa and fitness center; two swimming pools; circus rides; a 43-foot aquarium; an Oriental garden, the Precious Moments gallery; and the Samuel J. Butcher Mansion, which has a vast antique collection and stunning pieces of bric-a-bracs and other Oriental items.

4. Watch native pineapple leaves transform into intricately woven pińa cloth. Aklan’s top local product, pińa jusi, or Philippine silk, comes from the red pineapple

m&Entertainment NOURISM ECOPARK DESTINATION BusinessMirror

tourism@businessmirror.com.ph • Monday, November 17, 2014 A7

DOT eyes creation, implementation of rules for diving operations in PHL B E T

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HE Department of Tourism (DOT) is stepping up the creation of rules for diving operations in the Philippines to spur growth in that industry, whose annual revenues are estimated at P1 billion.

In an interview during the DOT’s public consultation on the proposal for such rules, Karen Chan, executive director of the department’s Philippine Commission on Sports Scubadiving, said only 2,500—or 10 percent—of scubadiving operators are accredited, since the country does not have implementing rules for diving operations in island destinations.

She added that these rules are expected to be implemented in 2015, initially in Bohol, Batangas and Davao.

“The diving industry has been operating in the country for the last 36 years, but there is no agency—except local government units—that checks on diving equipment and safety,” Chan said.

According to her, the Philippines is Southeast Asia’s center for diving spots, since it is at the heart of the socalled Coral Triangle, as well as the region’s center of marine biodiversity.

For his part, Benedict Reyes, DOT commissioner for sports scubadiving, said the diving industry is the world’s most lucrative tourist and sports activity, and the Philippines can benefit from it once the proper rules and accreditation are in place.

Reyes said the government has yet to receive all the revenues gener-

ated from diving operations, despite the fact that the country is home to the famous Tubbataha Reef, which is a United Nations Educational, Scientific and Cultural Organization World Heritage Site, as well as thousands of diving spots.

He explained that diving in Tubbataha costs up to $2,500 for each tourist who avails himself or herself of a four-night package, but since there are no existing scubadiving rules, the government does not fully benefit from it.

Reyes also said the implementing rules also aim to address the rampant poaching of marine species in Tubbataha, mostly by Chinese fishermen.

The implementing rules for sports scubadiving are part of the DOT’s National Tourism Development Plan.

Tourism dept announces new European digital drive

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HE Department of Tourism has announced a new campaign to further promote the Philippines through digital and socialmedia platforms.

The campaign, which will be launched by the Global Tourism Interface Network, aims to increase the number of tourists from four destination markets: France, Italy, Spain and the United Kingdom.

Each market will utilize a digital press office and the creation of individual pages on social-media sites, such as Facebook, Twitter and Instagram, to engage with a wider audience.

The strategy will also encompass blogger relations in order to reach key

JOJO’S Christmas Cottage

variety. This fabric is regarded as the most exquisite of all fabrics because of its sheen and softness. Primarily used to make the barong Tagalog and terno, modern designers now use it for gowns and haute-couture dresses, which have been showcased in international fashion shows.

We visited the La Herminia Heritage Arts and Crafts, where we saw how pińa was made: the leaves are scraped; the fibers are tied one by one; and then woven together. This process lasts almost an entire month.

According to Bog Tambong of La Herminia, a pińa gown made of the linawan (pure fiber) and has handmade embroidery costs between P10,000 and P12,000. No wonder La Herminia’s clients include popular Manila-based designers Rajo Laurel and Paul Cabral.

5. Enjoy the Lagatik River Cruise. Ten minutes away from Kalibo is the historic municipality of New Washington, named after US President George Washington and best known as the hometown of the late Archibishop Jaime Cardinal Sin of Manila. Exploring this coastal town is more fun by taking a cruise of the Lagatik River.

River-cruising, as a unique tourism experience in Aklan, has been developed by the Dumaguit-Batan Ferries Corp. The home port of the cruise ship is Sitio Malogo in Barangay Polo.

A WORKER at La Herminia Heritage Arts and Crafts

This is the barangay next to and east of Poblacion in New Washington. The place is now called The Yard, because this is where ships are built.

It also has a waiting area for clients with a restaurant-bar and souvenir shop. Lagatik River, which is the river south of the Poblacion, connects the port of New Washington to the Sibuyan Sea and the high seas. It stretches along some of the municipality’s barangays at a length of 9.6 kilometers.

Enjoy the beauty of nature and breathe fresh air along the way from the mangroves found in the waters of New Washington to Tinagong Dagat (Hidden Sea in English) of Batan town.

Tinagong Dagat is approximately 8 km long and 4 km wide. It is between Altavas town and Batan, and

also partly hidden from Batan Bay by two islands that are fringed with mangroves, thick undergrowth and rocky beaches.

Cruises last for three hours and are available three times a day (7 to 10 a.m., 11:30 a.m. to 1:30 p.m. and 3 to 6 p.m.). Breakfast, lunch and dinner are served, with these meals accompanied by live music onboard.

Possible short stopovers during the cruise are the Capis-pisan islet, fish-fattening farms and fish/oyster farms. At the islet, a resthouse was constructed by the College of Fisheries and Marine Sciences of Aklan State University (formerly Aklan National College of Fisheries).

The dinner cruise is now popular among families and school groups, as well as professionals, and local and foreign tourists.

influencers in the travel, food and lifestyle sectors.

There will also be blogger press trips to further boost online presence. This will include an inaugural “Jeepney Roadtrip,” where an influential blogger from each market will endeavor to reach the Philippines in a jeepney, the country’s most iconic vehicle.

Other campaign-related activities include the placing of Facebook advertisements and co-branding with relevant trade partners in each market.

Also, the campaign will be engaging the travel trade on joint-promotional activities to drive point-ofsale and actual bookings of trips to

the Philippines.

“We know that many people research their holidays online now and we want to target our possible customers and give them the best and most up-to-date news about our islands.

Additionally, we love the idea of visitors taking their own images and sharing them with other followers of our channels,” said Domingo Ramon C. Enerio III, COO of the Tourism Promotions Board.

“We also look forward to working with bloggers, whose honest accounts of their travels give their followers great pleasure, and provide lots of information and tips for travelers to inspire their research,” he added.

BusinessMirror

A8

TheElderly

news@businessmirror.com.ph

Monday, November 17, 2014 • Editor: Efleda P. Campos

Exclusion of ‘vital’ items from discountable grocery list focus of Quezon City seniors’ ire

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By Oliver Samson | Correspondent

ANY seniors living in Quezon City have voiced their frustration over the exclusion by supermarkets, groceries and convenience stores in Quezon City of goods and other grocery items they consider basic.

Older people in the city feel these grocery items should be included in the 5-percent discount privilege they receive.

The Office for Senior Citizens Affairs (Osca) recently clarified that it’s something beyond their control.

“We are only following rules and regulations set by the Department of Trade and Industry [DTI],” Baby Geronimo, Osca Quezon City operations officer, told the BusinessMirror.

The office’s response came after senior citizens lamented the exclusion of grocery items with good nutrients, like milk products, oat meal, oat bran and nonfood adult needs, like toiletries, are excluded from the

5-percent discount, while instant noodles and sardines are discounted.

“We have been clamoring for goods that are nutritious, like milk products, to be discounted by supermarkets, grocery and convenience stores since last year,” Geronimo said.

Even senior citizens, who are aware of the discount privilege, nationwide also air the same complaints, she noted.

But the DTI only told Osca that it is so far reviewing the issue, Geronimo said.

Aside from grocery items, senior citizens also complain about pharmacies in Quezon City that do not give senior-citizen discount on overthe-counter drugs, vitamins and minerals, and other supplements, she said.

Pharmacies clear themselves by saying that they are only abiding by the regulations of the Department of Health, Geronimo said.

Medicines discounted at 20 percent are only those specifically prescribed by the physician for the treatment of a particular disease, she noted.

If the prescription is for a heart ailment, the senior citizen will receive a 20-percent discount on medicines for that particular health condition only, Geronimo said.

Medicines including vitamins and minerals that are not prescribed by a physician are not discounted, she said.

The DTI’s Department Administrative Order (DAO) 3, Series of 2005, states grocery products that “may be subjected to the 5-percent discount” include canned sardines, instant noodles, meat loaf, luncheon meat and corned beef.

It further states, however, that evaporated-filled milk, condensedfilled milk, powdered milk, coffee, bread, sugar, cooking oil, processed

meat, and soaps should also be discounted at 5 percent, regardless of the senior citizen’s financial status.

DOA 3, Series of 2005, also states that milk products prescribed by a physician for “therapeutic purposes” qualifies as medicine and the senior citizen will be given a 20-percent discount.

Purchasing the milk prescribed by a physician from supermarkets, groceries and convenience stores, however, forfeits the 20-percent discount on prescription items.

Under Republic Act (RA) 9994, senior citizens are entitled to a 20-percent discount on medical goods and services.

RA 9994, otherwise known as Expanded Senior Citizens Act of 2010, which amended RA 9257, seeks to give senior citizens a 20-percent discount on grocery items.

However, the DTI and the Department of Agriculture set the discount at 5 percent at the maximum of P1,300 worth of basic goods per week.

Even imported products under the category of basic necessities are “subject to the 5-percent discount.”

DOA 3, Series of 2005 states that a retailer who refuses to honor the 5-percent discount privilege of senior citizens may be charged with criminal or administrative case or both.

Senators welcome PhilHealth bill as early Christmas gift to elderly

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ENATORS on November 11 welcomed the signing of the bill into law calling for the automatic Philippine Health Insurance Corp. (PhilHealth) coverage to all senior citizens, describing it as an early Christmas gift to the country’s more than 6 million elders.

“Our senior citizens could now look forward to spending their robust years as bonafide members of the Philippine Health Insurance Corp., or PhilHealth,” said Senate President Pro Tempore Ralph Recto, main author of the bill.

Last week, President Aquino signed Republic Act (RA) 10645, otherwise known as “An Act Providing for the Mandatory PhilHealth Coverage for All Senior Citizens, Amending for the Purpose RA 7431, as Amended by RA 9994, Otherwise Known as the Expanded Senior Citizens Act of 2010.”

“All that senior citizens need to do to avail themselves of PhilHealth benefits in a hospital is to present a valid ID proving their age,” Recto said.

“Health insurance can never be called universal if it does not cover all seniors. Enrolling them must be automatic, not optional. The ideal is that the minute they blow out the candles on their 60th birthday cake to the moment they breathe their last—they should be PhilHealth members,” Recto said.

Sen. Teofisto “TG” Guingona said the passage of the law is part of the commitment of the Aquino administration to give social-protection services to all Filipinos beginning with the senior citizens.

“It is high time that we give back to our country’s elders. In our culture, the condition and situation of a person in their advanced age is the reflection of the character of their children,” Guingona said.

With the signing of the new law, Guingona said the remaining 2.16 million will now be covered by PhilHealth.

There are approximately 6.1 million senior citizens—60 years old and above—in the country today.

As of December 2013, PhilHealth has 31.27 million registered members and 45.63 million dependents totaling 76.9 million Filipinos provided with PhilHealth coverage. PNA

Managing older people with type 2 diabetes

By Cheridine P. Oro-Josef, MD, FPAFP, FPCGM

right to health

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HE aging population is unprecedented and the proportion of older persons is increasing while a decline in the younger population is observed. The diagnosis of diabetes has increased in epidemic proportions. The increase in life expectancy raises the number of older persons with diabetes being seen in the clinics. The International Diabetes Foundation (IDF) has issued a global guideline in the management of older persons with type 2 diabetes.

“The highly prevalent nature of diabetes in aging populations is characterized by the complexity of illness, an increased risk of medical co-morbidities, and the early development of functional decline and risk of frailty. When these are coupled with the common and widespread occurrence of delayed diagnosis, frequent admission to hospital, and clinical-care systems that may be suboptimal, if not inadequate, it is not surprising that the IDF now feels it is important to address these shortfalls by a guideline which lays the foundation for high-quality diabetes care for older people.”

The IDF recommended guidelines according to functional categories of the elderly. Hence, management is appropriated according to the following: Category 1: Functionally independent. These are people who are living independently and have no impairments in their activities of daily living.

Category 2. Functionally dependent. This category represents those individuals who, due to loss of function, have impairments of ADL such as bathing, dressing, or personal care. This category includes a range of functionally dependent older people with diabetes. Two groups require special consideration: Subcategory A : Frail. These individuals are characterized by a combination of significant fatigue, recent weight loss, severe restriction in mobility and strength, increased propensity to falls, and increased risk of institutionalization. Frailty is a recognized condition and accounts for up to 25 percent of older people with diabetes.

Subcategory B : Dementia. Individuals in this subcategory have a degree of cognitive impairment that has led to significant memory problems, a degree of disorientation, or a change in personality, and who now are unable to self-care.

Category 3. End of life care. These individuals are characterized by a significant medical illness or malignancy and have a life expectancy reduced to less than 1 year.

The IDF also recommends several assessment tools to help clinicians categorize the older persons. These categories will now help doctors in properly managing older persons with type 2 diabetes and as to the choice of drugs proper to each. It is very important then to screen the older persons for diabetes and manage accordingly. The complete guideline may be downloaded at www.IDF-Guideline-for-older-people-T2D.pdf.

Ready help for UTI in older adults

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Quality time with Grandpa

A grandfather enjoys time with his grandson at the Rose Garden in Burnham Park in Baguio City. A favorite place for families, the place features music and a dancing fountain. MAU VICTA

Dagupan senior citizens get class treatment

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AGUPAN CITY—Mayor Belen Fernandez said she has reversed what she called unfair treatment by the past city administration of senior citizens by coming out with a special program that could provide the right ingredients for them to have happier and longer lives.

This is the essence of the program “Alagang Balon Dagupan for the Elderly” (New Dagupan Cares for the Elderly) which was the subject of a 15-minute presentation that Fernandez made before a World Health Organization (WHO) forum at Crowne Plaza in Hong Kong on October 30.

In an interview on Monday at the city plaza here after the flag-raising ceremony, Fernandez expressed happiness over the fact that WHO has recognized this program and has, in fact, benchmarked it for adoption in other developing countries of the world for the welfare of their elderly population.

She said that when she took over the reins of city hall after serving as acting mayor when the incumbent she beat in the polls could not continue the remaining part of his term, she learned that the city government was saving money so that it can give more assistance to the families of senior citizens when they die.

“This is wrong,” she told officials of the city government. “You should instead use your money to prolong the lives of the elderly and make them happy while they are still with us and not use it when they already died.”

Thus, evolved the program “Alagang Balon Dagupan for the Elderly” which is the first of its kind in the Philippines and of the world.

Fernandez said the City Health Office is now conducting twice-a-month medical mission for the elderly right in the senior citizens’ building where they are given free consultation and medicines. On Tuesdays, they can go and see a movie for free in any of the cinemas of the CSI City Mall.

Proving that she is the biggest ally of the elderly in the city, she built a new senior citizens’ building that is more accessible and convenient for them which has facilities for their recreation and exercise to help promote a healthy and longer life.

At the same time, Fernandez said the CHO headed by Dr. Leonard Carbonell, has increased the number of people that it serves this year by an incredible 500 percent, partly through these regular medical missions for the elderly.

“The CHO no longer waits for patients

to come to their clinics as what they used to do before. A team of nurses are now going around the barangays knocking at the doors of every home in search of sick members of families,” she said.

She said if the patients cannot go the healthy clinic, it is the clinics that will go to them.

The senior citizens benefited from free cataract operations regularly being sponsored by the city goverment in partnership with doctors of the University of Santo Tomas, wherein several times Fernandez herself accompanied the patients to Manila.

If the seniors needed wheelchairs and walking aids, these can be sourced out from the Church of Christ of the Latter Day Saints which signed an agreement with the city to provide these gadgets to the people needing them most.

Leah Aquino, officer in charge of the City Social Welfare and Development, revealed that so many organizations, civic and religious, volunteered to conduct joint projects with the city government since Fernandez was at the helm in Dagupan.

Many of these projects involved elderly citizens, children and indigents. PNA

HE National Center for Health Statistics states that urinary tract infection (UTI) accounts for about 8.3 million doctor visits each year. It is relatively easy to cure, but can spread and develop into far more serious complications if left untreated. It can, for instance, lead to sepsis, a potentially life-threatening infection of the bloodstream. Immediate treatment of UTI is therefore important.

UTI in the elderly is not as easily detectable and can, therefore, cause delay in the administration of the needed treatment or cure. An older person may not experience the usual symptoms that characterize UTI in younger patients, such as painful burning when urinating. In fact, UTI in the elderly may not involve pain or discomfort at all. It is all part of the normal aging process; the immune system responds differently.

One of the best indicators of UTI in older adults is a sudden change in behavior. Common warning signs include the onset of elderly urinary incontinence, confusion and suddenly not being able to do tasks that are usually accomplished with ease. An abrupt change in behavior is a red flag.

It is also helpful to know who are at greater risk for getting elderly UTI. These include those who require a catheter in the urethra and bladder, diabetics, and anyone with kidney stones.

Women who have gone through menopause are also at high risk of getting UTI. After menopause, women experience a change in the lining of the vagina and produce less estrogen which helps protect against UTIs. In most cases, diagnosis and treatment of elderly UTI is relatively straightforward. Urinalysis is used to confirm the presence of UTI and antibiotics are usually prescribed for treatment. However, patients can

become resistant to the antibiotics most often prescribed for UTI such as amoxicillin. The common recourse is to administer stronger antibiotics for a longer span of time. This can unfortunately expose the patient to possible side effects.

As an alternative to antibiotics, CranUTI cranberry supplement is effective in the treatment and prevention of UTI. It is approved by the Food and Drug Administration and is 100-percent natural cranberry. It does not contain sugar, flavoring, coloring and preservatives. Because it is a herbal remedy, CranUTI does not have side effects unlike antibiotics which can affect the liver and kidney. It is available at Mercury Drug and other drugstores in sachet foils (10 capsules for P100), jars (60 capsules for P550) and pack 10s (100 capsules for P1,000).

CranUTI contains the vitamins and minerals of the whole cranberry which is a good source of hippuric acid and the antioxidant proanthocyanidins which exhibit anti-adhesive activity that prevents UTI-causing bacteria like E. coli from attaching to cells in the bladder. Regular intake of CranUTI helps treat UTI and prevent recurrence.

Recommended dosage is one to two capsules per day taken after meals. Make sure to drink plenty of water. For more information on CranUTI, call consumer hotlines 524-6549, 354-2208 to 09 and 0947-4890262.

You may also visit www.facebook.com/ CraUTI and www.cranuti.com or e-mail at info@whealth.com.ph.

Regions BusinessMirror

news@businessmirror.com.ph

WB funds garbage composting

by Bacolod City residents

By Manuel T. Cayon Mindanao Bureau Chief

B

ACOLOD CITY—The World Bank has tapped a college here to develop a P32-million training program for residents here who rely for a living on the garbage dumped at its small sanitary landfill. Pamela Henares, retired administrator of the Riverside Medical Center here, said the World Bank has tapped the Consolacion College here to train the 750 garbage-dump residents to use the biodegradable portions of the collected garbage for composting.

The garbage-dump residents would be trained in batches for about two weeks on vermiculture, which use the African night crawler worms to decompose the biodegradable materials, composting and organic farming.

“This may not make a significant reduction in the garbage dumped in the small 1-hectare sanitary landfill, but at least, people are taking the cue from others to refrain from putting all waste at the landfill when a portion of them could be recycled and reuse,” she told a group of journalists from Davao City brought by the Department of Agriculture to study organic agriculture.

By practical rule, only 20 percent of

total garbage collected should end up in the landfill, with the big portion segregated for recycling and reuse.

Unfortunately, she said, the landfill here is small such that when it was constructed in March this year, “it has become full by this time already.”

This city of 500,000 population roughly churn out 500,000 kilograms of garbage daily. Henares said there were 750 persons identified as living in the dump, “although their number would increase on certain seasons: such as when there would be no harvest in the sugarcane fields.”

The sacadas, the seasonal workers in the sugarcane plantations, would swell the number of people sifting through garbage when there are no activities in the fields, she said.

The training program here is one of 10 other sites where garbage scavengers would be trained to recycle and reuse and develop composting to help augment their income.

The program would run for only one year. Henares said the Consolacion College has tapped her as its consultant.

Bacolod City has one of the highest organic-agriculture awareness in the country, with resorts and plantations using organic methods.

A

COMPROMISE framework agreement among the Federation of Sicogon Island Farmers and Fisherfolk Association (Fesiffa), the Sicogon Development Corp. (Sideco) and Ayala Land (ALI) was signed on November 8 in Estancia, Northern Iloilo, ending a long-standing land dispute and paving the way for much- needed community development in the area.

The milestone event will allow ALI to start immediate development in Sicogon. In partnership with Sideco, it will develop the island into a world-class ecotourism destination that will create livelihood and business opportunities for the people of Sicogon.

The development is also seen to improve economies and land use through tourism, and is consistent with the government’s thrust to alleviate poverty. It is expected to provide

By Oliver Samson Correspondent

S

Mayor asks Davaoeños if they want to privatize garbage collection

By Cha Monforte Correspondent

D

AVAO City Mayor Rodrigo Duterte has asked city residents whether they want a private company to take charge in the collection of garbage in the city.

In his TV program on Sunday, he said in his parting statement that a private company collecting the city’s garbage is happening in other places such as Quezon City. In that scheme, the city government would just pay private garbage collectors, and would not be troubled with the actual garbage collection.

“But you have to decide if you want this,” he said.

He said, “We have to renew the system. We have to fix the garbage problem.”

He said they need to make repairs and refleet the city’s garbage trucks and compactors owing to wear and tear of long years of use.

The mayor said he plans to borrow money from Land Bank of the Philippines to fund the acquisition of new trash bins, which he wants to be bigger in size.

He said trash bins originally placed in designated streets and highways all over the city have been deci-

mated by floods, private use of unconcerned citizens and by the time’s wear and tear as these are about 10 years already.

He would also tap trisikads (cycle rickshaws) in collecting garbage in short distances to the designated places of disposal, so that in that way trisikad drivers could have additional source of livelihood.

At present, the City Hall is paying much for the rental fee of privately owned garbage trucks.

Recently, OIC City Environment and Natural Resources Office (Cenro) Elisa Madrazo bared a dismal figure of running garbage vehicles owned by the city—two garbage trucks and a compactor joining with some 100 privately owned garbage trucks.

She said the rental fee varies. For the Poblacion it is P20 per kilometer per day, while in Lasang, the city spends P20,000 per day. In Calinan district, the city is paying as high as P1-million rental fee per month.

Cenro has some 500 garbage collectors deployed to man for the city owned and contracted garbage trucks.

The city’s garbage and waste are finally thrown off at sanitary landfill in Barangay New Carmen, Tugbok district.

US-PHL Society partners with BDO Foundation to construct school building in Antique

T

HE US -Phi l ippines Societ y (USPS) partnered with BDO Foundation to build a two-story school building with four classrooms in Supertyphoon Yolanda-affected area in Antique.

The society is a nonprofit, nonpartisan and private group, based in Washington, D.C., and organized to broaden and expand US-Philippines relations. It recently held a benefit

concert entitled “After the Storm,” during the Philippine Independence Day celebration held in Washington, D.C., to support post-Yolanda recovery in the Visayas.

Both parties agreed to build in Pandan Central School which suffered severe damages from the typhoon as the school is at the northern part of Antique and within the 100-kilometer storm track.

A9

Signed agreement paves way for Sicogon development

at least 25,000 jobs to the local community.

Moreover, the construction of an airport and a jetty port to improve accessibility to the island are projected to commence in the first quarter of 2015.

Based on the agreement, the joint venture between ALI and Sideco will allocate resettlement sites for residents, as well as help the local community build capacities. It plans to provide livelihood and training projects, which ALI has

US nonprofit raised ₧2.9M to rehab mangroves in Yolanda-hit areas

Davao mayor welcomes ALC Group officials Davao City Mayor Rodrigo R. Duterte (seated, center) meets with Ambassador Antonio L. Cabangon Chua (seated, left), chairman emeritus, and D. Edgard A. Cabangon (seated, right), president of Pilipino Mirror during a visit last week of the Manilabased businessmen to the city. Standing behind them are (from left) Rene Concordia; Benjamin V. Ramos, president of the BusinessMirror; Lawrence Bong Go, chief of staff of Duterte; and lawyer Jong Cadiz.

Monday, November 17, 2014

ENIOR officials of a nonprofit organization based in the US, which helps finance worldwide projects, took part in the planting of 5,000 mangrove propagules in a recent coastal-reforestation effort by the Philippine Business for Social Progress (PBSP) on Bantayan Island, Cebu.

GlobalGiving Director of Programs Britt Lake and Senior Unmarketing Manager Alison Carlman joined officers and members of Kangwayan Farmers Association plant the propagules in mangrove reserves in Barangay Kaongkod, Madridejos, said Jay Jaboneta, PBSP corporate affairs manager, on September 8.

GlobalGiving is helping PBSP generate funds for its ongoing reforestation project of over 30 hectares of mangrove areas in barangays Kaongkod and Malbago, two of the heavily damaged barangays in Madridejos, he said.

The US-based organization has already helped PBSP raise P2.9 million to rehabilitate 34.6 hectares of mangrove reserves in said barangays, Jaboneta said.

GlobalGiving, an “online fund-raising site that provides a platform for foundations and

social entrepreneurs all over the world to raise funds,” help finance community projects, like rebuilding efforts in areas heavily damaged by the typhoon, he said.

The organization has been working for over a decade to raise funds for projects in depressed and calamity-hit communities across the globe, Jaboneta said.

Since 2002, GlobalGiving has raised “more than P6.6 billion [$151.8 million] from 407,068 international donors that supported 10,817 projects in the different parts of the world,” Jaboneta said.

GlobalGiving also announced it is “offering a 100-percent match for projects that continue to support” recovery efforts in communities heavily damaged by Supertyphoon Yolanda, he said.

“The matching will begin on November 8, 2014 and will end when GlobalGiving’s offered matching funds runs out,” Jaboneta said.

Bantayan Island, located west of the northern end of Cebu, lost 27 percent of its mangrove biomass to Yolanda in 2013.

PBSP’s mangrove rehabilitation in the island is part of its Project New Dawn, “the foundation’s collective response to the longterm” recovery of Yolanda-affected areas in Visayas, which was launched in June this year, Jaboneta said.

already began implementing in the area.

“We are glad that all the stakeholders have come to an agreement regarding development of the island,” said Maria Corazon Dizon, vice president and head of ALI Capital. She said “a sustainable and master-planned tourism hub in Sicogon will not only revive interest in other Western Visayas island destinations, but also help residents rebuild and enhance their communities after Supertyphoon Yolanda.”

The agreement was signed by Fesiffa’s Raul Ramos, Sideco’s Edgar Sarossa and ALI’s Dizon exactly one year after Superyphoon Yolanda swept through the Philippines.

Since last year, ALI has built houses and provided fishing boats for over 400 beneficiaries in Estancia, Carles and Banate in Northern Iloilo as part of the Ayala Group’s post-Yolanda rebuilding effort. Furthermore, 60 classrooms have been constructed by the group across Iloilo’s fifth district The signing was witnessed by Rep. Niel Tupas Jr., representative of the fifth district of Iloilo; Secretary Joel Rocamora of the National Anti-Poverty Commission; and Randy Bernal of Uswag Sicogon Homeowners Association.

Cebu seminar on how to joint venture legally with GOCCs and LGUs

J

OINT ventures (JVs) are increasingly becoming popular as a faster and easier approach toward implementing infrastructure, development and social service-related projects at the national and local government levels. To accelerate more economic growth through public-private partnerships, the National Economic and Development Authority (Neda) released the 2013 revised JV guidelines applicable for government-owned and -controlled corporations, government instrumentalities, government financial institutions, and state universities and colleges.

For local government units (LGUs), they are governed by their own JV ordinances. The authority of LGUs to enter into JVs and provide their own guidelines has been affirmed by the Department of the Interior and Local Government and the Department of Justice.

The Center for Global Best Practices, in collaboration with Forensic Solutions, with the aim of walking you through the NEDA Guidelines that took effect on May 26, 2013, and JV ordinances, will be holding a pioneering seminar entitled, “Business And Public Officials’ Guide on How to Joint Venture Legally with LGUs and GOCCs” on November 27, at the Second Floor Laguna Garden Café, Ayala Center, Cebu City. For details and all other best practices seminars including Best Practices and Remedies to Avoid COA Disallowances, Cebu MCLE for Lawyers, you may check www.cgbp.org. This one-day special seminar will deal on the definition of a JV, requirements, cash and noncash contributions of parties, procedures for selecting partners, bundling or unbundling of project components, and trends, opportunities and challenges.

A10 Monday, November 17, 2014

Opinion BusinessMirror

Editor: Alvin I. Dacanay

editorial

Where’s our medical tourism?

I

T is said that people traveling from their home country to another for medical services is a $40-billion-a-year business.

Last year approximately 11 million of these medical tourists spent an average of $4,000 in this industry, which is growing by as much as 25 percent annually.

A vital center for medical tourism is Southeast Asia, where Malaysia and Thailand are major players. Besides these two countries, other top medicaltourism destinations are Costa Rica, India, Israel, Mexico, Singapore, South Korea, Taiwan, Turkey and the United States.

Some of these countries are on top because of their ability to offer advanced treatments (like the US), special services that may not be available or are outlawed elsewhere (like Thailand), or reduced costs.

Believe it or not, the Philippines tried to venture into this business back in 2004 with the signing of Executive Order 372 by then-President Gloria Macapagal-Arroyo. It created a public-private partnership task force to develop globally competitive service industries, including health care.

But like so many other government initiatives, medical tourism here appeared to have been subjected to a ningas cogon-style of implementation.

While the Department of Health does have its own medical-tourism program it is a pale shadow of what Malaysia has accomplished.

The Malaysia Healthcare Travel Council (MHTC) was established under the Ministry of Health Malaysia in—and note the date—July 2009. Last year the number of tourists who came to Malaysia to seek medical treatment reached 770,134, which is roughly equal to 15 percent of the total number of visitors to the Philippines.

In sharp contrast to treatment-seeking foreigners who arrive at our airports, here is how medical tourists are greeted when they arrive in Malaysia: At both the Kuala Lumpur and Penang airports, these tourists are greeted by the MHTC Concierge, a one-stop center for medical tourists only. It answers all questions and provides information on travel, accommodations and healthcare services. It also provides a first-class lounge for the tourists while they wait to be transported to a hotel or medical facility.

In the Philippines, the effort to attract these tourists is led by the private sector, with private hospitals and travel-based companies promoting their services abroad. A study by the Asian Institute of Management (AIM) provides a long list of reasons Philippine medical tourism has not worked, including bad transportation and high airfares.

There always seems to be so many “valid” reasons we cannot succeed, while others can.

Maybe the AIM is right in saying that infrastructure is the problem, and not the government’s lack of proactive programs to make medical tourism effective and prosperous.

But we do know that Malaysia is succeeding. Last year 10,560 Filipinos went to Malaysia under its medical-tourism program.

The President in China and Myanmar Atty. Jose Ferdinand M. Rojas II

RISING SUN

P

RESIDENT Aquino recently attended the 2014 Asia-Pacific Economic Cooperation (Apec) CEO Summit and the 22nd Apec Economic Leaders’ Meeting in China and the 25th Association of Southeast Asian Nations (Asean) Summit in Myanmar.

The theme for this year’s Apec summit was “Shaping the Future through Asia-Pacific Partnership,” with the goal of promoting economic cooperation and free trade among the group’s 21 member-economies.

In the speech he gave upon his return, the President said the Philippines was able to show the leaders of the region that the Filipinos face problems, rather than escaping from them, and are ready to work with others to respond to challenges.

He also said attending the meetings and seeing his fellow heads of state face-to-face had advantages: trust was formed and interaction was facilitated. At the summit, he took the opportunity to talk to top officials about issues affecting not only the region, but also other areas of the world—economic development, terrorism, climate change, good governance, agricultural development, tourism, education, trade

and industry, and the spread of the Ebola virus, among others.

The President said he had fruitful discussions with the leaders of Vietnam, Chile, Peru, Papua New Guinea (PNG), Thailand, Canada, New Zealand, Japan, Australia, India and China.

He mentioned, in particular, a talk he had with PNG Prime Minister Peter O’Neill, who mentioned that many of his countrymen travel to the Philippines for education and medical tourism. O’Neill suggested that Filipinos share their knowledge and experience in fisheries, finance, agriculture, public health, education and other fields, in exchange for flourishing trade and economic activity between the two countries.

President Aquino also had a constructive dialogue with, among others, Thai Prime Minister Prayuth Chan-ocha and Chinese President Xi Jinping. In addition to heads of state,

he met the heads of companies, such as Raymond W. McDaniel Jr., the president and CEO of credit-rating agency Moody’s Corp.

McDaniel told the President that it was rare for a credit-rating agency to give both an upgrade and a positive outlook to any country. Moody’s gave these marks to the Philippines at a time when credit-rating agencies were being conservative and cautious. He also said that, based on indicators, our banking system was the only one in the entire world that was given a positive outlook.

Meanwhile, more good news: the President said pharmaceutical company Sanofi is working on vaccines for four different types of dengue fever that are causing problems in our country, while Johnson and Johnson will open a Philippine service center that will provide 500 jobs.

At the Asean summit, President Aquino said that, among other agreements for greater cooperation, the member-nations also agreed to complete the Asean Community Integration by December 2015. This will open up a bigger market of 600 million people for Philippine products and services.

The Philippines is hosting the 23rd Apec summit in 2015 and has been preparing for this since last year.

The President’s trip may be short, but it was one filled with many accomplishments and gains for the

Japan Inc. still has its head in the sand William Pesek

BLOOMBERG VIEW

W

HAT is it with Japanese corporate chieftains when things go horribly wrong for them? Shigehisa Takada, the chairman of Tokyo-based Takata Corp., is facing a spiraling scandal after it was reported that another victim—a pregnant woman in Malaysia—was killed by one of his company’s airbags. The United States Senate is holding hearings on the issue this week, and an American grand jury has subpoenaed company officials. And, yet, Takada remains AWOL, leaving company flacks to assure reporters that he “deeply apologizes” for the five deaths and 139 injuries now attributed to Takata products.

Takada’s disappearing act is reminder of the uphill slog that Japanese Prime Minister Shinzo Abe faces in his efforts to strengthen corporate governance in Japan.

Five years after the start of Toyota’s massive recall and three years after Olympus shocked the world with a $1.7-billion fraud scandal, the country’s top executives remain far too insulated from the kind of shareholder and media scrutiny now common in the West.

I’m not trying to indict all of Japan

Inc. here. But the fact that executives at Takata, a company that employs 35,000 people worldwide, think they can handle a public-safety issue with such a blatant lack of transparency should be deeply concerning to the government and people of Japan.

Companies make faulty products sometimes. Innovation, after all, is about taking risks and seeing what works. When mistakes happen, the key is to identify flaws quickly, admit them openly and fix them methodically. It’s all about the

response, as MBA students learn about, say, Johnson & Johnson pulling millions of Extra Strength Tylenol bottles from store shelves in the early 1980s after seven people in the Chicago area died.

Abe has pledged to drag Japanese management into the modern world, kicking and screaming if need be. He’s pushing firms to bring independent directors onto boards (China, India and South Korea already do), hire more female executives and make more company data available. He wants to introduce a stewardship code that would enlist investors to press management for higher returns. But the endeavor is a work in progress, at best. Thanks to Abe’s sliding support rate—and intense lobbying by business groups—these much-needed reforms are being watered down.

Japanese companies, if they care about their global reputations, should, instead, be embracing Abe’s efforts and, indeed, going beyond them. Perhaps, Takata’s next chairman shouldn’t be the grandson of the company’s founder, but a leader ready for prime time. In a decidedly top-down economy like Japan’s, it’s not surprising that executives would wait around for the government

country. Congratulations, President Aquino, on another successful international trip! nnn

THE 13th bienniale of the Visayas Islands Visual Arts Exhibition and Conference (Viva ExCon), held from November 13 to 16 in Bacolod City, Negros Occidental province, was crammed with interesting artworks to see and activities to participate in, marking the city as a notable hub for artistic and creative activity.

Viva ExCon promotes and strengthen cooperation among visual-art groups in the Visayas, which includes the islands of Negros, Panay, Cebu, Samar, Bohol, Leyte, Siquijor, Boracay and Guimaras.

It aims to bridge the Visayan islands by facilitating networking, interaction and dialogues to address relevant issues and develop the local visual-art scene.

This year’s event culminated in the Garbo sa Bisaya Exhibition and Awards night at the Negros Museum.

Garbo honors the legacy of senior artists and visual-art contributors, and prioritizes the living so that “they may be celebrated during their lifetimes and their contributions appreciated by the community,” according to the event’s website.

Atty. Jose Ferdinand M. Rojas II is the vice chairman and general manager of the Philippine Charity Sweepstakes Office.

to codify rules of conduct and accountability. But that’s not anywhere near good enough if they want to compete globally.

Toyota’s 2010 playbook may offer a road map for others. Back then, Akio Toyoda had a pretty terrible showing early into the carmaker’s crisis over cars that accelerated unexpectedly. Toyoda, the grandson of the company’s founder, held just one news conference as the crisis spread.

But then Toyoda was ambushed by national broadcaster NHK at Davos, Switzerland, and apologized during a brief interview. He came clean.

“We pursued growth over the speed at which we were able to develop our people and our organization,”’ Toyoda told US lawmakers during a Capitol Hill grilling soon afterward. “My name is on every car.

You have my personal commitment that Toyota will work vigorously and unceasingly to restore the trust of our customers.”

There’s no perfect way to respond to a scandal. But, if Abe is going to get traction with policies to make corporate Japan more vibrant and productive, executives have to drop the ignore-deny-obfuscate mindset of old. Neither they nor their customers can afford it.

Opinion BusinessMirror

opinion@businessmirror.com.ph

Top workplaces fight hard to keep top talent

No guns, no crimes

By Rex Huppke

I

Teddy Locsin Jr.

Chicago Tribune (TNS)

BELIEVE it was me who once said, “The best workplace advice utilizes at least one made-up word.” With that in mind, here are some timely nuggets of wisdom for workplaces, large and small:

If you’re a top workplace, you need to be “topperer”; if you’re a good workplace, you need to be “gooder”; and if you’re a complacent workplace, you need to be less “complacentantanoose”.

I offer this highly intelligent advice because, for the first time in ages, employees are discovering job opportunities elsewhere.

For years, people clung to jobs, grateful just to have one. But now the economy is showing signs of life, more people are hiring and companies are poaching other companies’ high-performers.

“I think it’s becoming more competitive,” said Judy Whitcomb, senior vice president of human resources and learning at Vi, which operates senior living communities and was voted one of the Chicago area’s Top Workplaces. “Last year we thought we were on the brink of having to fight even harder to retain good people. So we put a lot of focus on that this year, because we could see it coming.”

“You can’t let up on your game in that area,” she added.

The Tribune’s annual Top Workplaces survey didn’t show dramatic change in attitudes that relate to retention, but responses to statements, like “I want to stay at this company for more than a year” and “I have confidence in the leader of this company,” didn’t go up over last year’s results.

There was a small downtick in responses to “I believe this company is going in the right direction” and, when compared with national data, Chicago-area workers are about 3 percentage points less likely to stay at their current companies for more than a year.

Though the data might be tame, the realities of a job market that’s heating up are cause for concern to any company that rests on its laurels.

Key things

JASON LEMKIN, managing director of the California-based venture capital firm Storm Ventures, said the market for top talent is as strong as he has seen it in years. He said companies should focus on the key things that keep workers from straying.

“Why do people want to stay? Two main reasons: Having a great boss, and having an opportunity to grow and do better. If you’re a CEO or a business owner, you have to make sure that your hiring managers or line managers are the kind of people that people want to work for. That’s job No. 1.”

The second step, and many agree on this, is making sure that employees see a clear and desirable career path. Brenda Ellington Booth, a professor of management and organizations at Northwestern’s Kellogg School of Management, said companies often default to thinking pay is what keeps top talent around.

“Money is one thing, but sometimes an employee will stay even if the compensation isn’t so great if they feel valued and they feel like they’re moving in the right direction and growing as a person,” she said. “If someone feels stuck and they’re very talented, that’s not good. They want to grow, so that their skills can grow and develop and so they feel relevant.”

To that end, Booth said it’s important for managers to communicate directly with top performers.

“The top talent needs to know they’re the top talent, and that needs to be communicated to them clearly,” she said. “Sometimes, companies will try to reward everyone. But that top talent needs to be recognized in a way that they say, ‘I feel appreciated. They’re taking my career ambitions into account.’”

Lemkin agreed.

“You cannot lose your top 10 percent,” he said. “So you have to spend time learning about what their goals are and making sure they’re on the right track. If they want bigger responsibilities, they get bigger responsibilities. You have to know where they want to be, you have to ask them, you have to listen, you have to keep your ears open. What’s going on?

What do you enjoy about your work? What’s frustrating? You have to have a sixth sense.”

Kim Simios, managing partner of the Chicago offices of Ernst & Young, another company on the Top Workplaces list, identified three focus areas that, she believes, are key to retention: experiences, the company’s culture and flexibility.

The experience component involves keeping workers continuously engaged.

“Our people move up through the organization about every year,” Simios said. “There’s

no staying in one place, which keeps people always learning. It’s never boring.”

From the culture standpoint, Simios said Ernst & Young promotes collaboration: “We know that, collectively, we come up with way better answers for our clients than any of us could come up with individually. We tell our people you need to be asking questions, you need to be raising your hands. That’s true from entry level all the way through to where I sit now. I call on people every day.”

The company also advocates community service and recently had about 1,100 employees spend a workday out of the office helping organizations across the Chicago area.

Free fire

I

N the United States the right to bear arms springs from the delusion that armed civilians can defeat professional soldiers.

That was true only in South Vietnam, where 500,000 American soldiers were beaten to the ground by sleepyheads in black pajamas.

Okay, in Afghanistan, Iraq and Syria, too—though, in Iraq and Syria, members of the professional armed forces are fighting. But set aside the rare exceptions that gun-lovers, in fact, never defend themselves, protect their families and uphold their personal honor, let alone fight for their country’s freedom, with a gun.

Tunisia may have the lowest number of gun owners in the world, yet,

it toppled a military dictatorship.

Ditto Egypt. Gun-toting Filipinos

Monday, November 17, 2014 A11

did not fire a shot and played no part at all when Filipino nuns faced down tanks and brought down the military-backed Marcos dictatorship. The US has the most guns in the world and the most number of gun-related crimes. Yemen ranks second, with only half the number of US murders. In 2008 the US had 12,000 gun-related killings; Japan had 11. When that number jumped to 22, it became a national scandal, wrote Max Fisher, from whom we got these observations. Why? Because, in Japan, one could get between one and 10 years in prison just for keeping bullets or holding a gun.

In Japan one can only get a shotgun or an air rifle. Even then, to get one you must attend classes, go to the firing range and take an exam

that is so rarely given that the line goes around the block; and then you are tested for insanity in a mental hospital, which leaves a record that your enemy can use. Your life is turned inside out with background checks for criminal or extremist connections. Only then do you become the proud owner of a shotgun or an air rifle. Still, the cops have to be told every time you change the place where you keep your gun in the house—the bedroom; this closet after that drawer.

It isn’t a culture thing. Japan has, if anything, a more violent history than the US, but they used swords.

Hawaii’s top tourist attraction after the endless white beaches are firing ranges in shopping malls targeting gun-hungry Japanese tourists.

Third focus area

VOLUNTEERISM and a sense of higher purpose are key for millennials, as is the last area Simios discussed: flexibility.

“We work hard,” she said. “Our people work very hard, so we’ve built a culture that promotes flexibility and empowers our people to set their own schedules.”

Flexibility is an issue that comes up at project-planning meetings.

For example, if someone has a wedding coming up, the team will organize its schedule to allow the person the time off he or she needs.

Simios said she sees the job market improving and has lost people to other companies.

“We try to plan for that and understand the market dynamics,” she said. “We focus on the key things.”

Whitcomb, at Vi, said employee turnover in the senior living industry tends to be high, ranging from 45 percent to 75 percent. But her company last year saw its attrition rate drop to 20 percent from 26 percent.

“At face value, people would say you wouldn’t need to do a thing,” Whitcomb said.

“But to me, that wasn’t good enough, so you have to get granular. Last year we put in place an exit interview process, and we saw we weren’t doing as good a job with people who had been with the company less than a year.”

So rather than be satisfied with comparatively good retention, the company put together a team to research the issue and restructure the prehire-and-starting process.

This involves everything from employeedevelopment plans that begin right away to simple welcome notes from managers that go out before new employees even start.

For more senior workers, Vi offers a leadership-development program that includes a week of classroom-training sessions and virtual study groups throughout the year. And Whitcomb said they try to monitor employees and encourage them to reach out in different directions at the company.

“People can get into ruts, so we’re constantly trying to leverage their experience and their knowledge,” she said. “Maybe they can mentor someone, maybe they can assist with a broader project. Even though they may not change roles or it may not be a promotion, we’re trying to engage them in different ways to see if there are other ways they can contribute to the company.”

At Ozinga Bros., a concrete company that also made it on the Top Workplaces list, coowner Tim Ozinga said recognition is a factor in keeping employees. But the company, as of this year, has also added a leadershipdevelopment class to its retention arsenal.

“We have taken people from a driver to sales and other people who are showing signs of leadership and we want to help,” Ozinga said. “We don’t want them to feel like, unless you have the last name Ozinga, there’s no future for you. We’re willing to invest in education and develop leadership.”

What Vi and Ernst & Young and Ozinga Bros. do is give thoughtful consideration to the issues that drive their employees. It’s not about perks, or even pay.

And, as Whitcomb told me, “It’s not overly complicated.”

Which is why I’d encourage leaders of every company—whether on the Top Workplaces list or not—to pause and consider some simple, sensible steps to keep your workforce engaged and excited.

Because if you don’t become topperer, gooder or less complacentantanoose, your best and brightest might become the ones that got away.

And that would be, as a wise man once said, highly disappointatious.

Obstacles to devt arising from the international system Manuel F. Montes

Inter press service

G

ENEVA—As the international community wades into the political discussions on the alternatives to the Millennium Development Goals (MDGs) after 2015 and the design of the Sustainable Development Goals (SDGs), as mandated by the Rio+20 conference, it is timely to consider the question of whether development is mostly a matter of individual effort on the part of nation-states, or whether there are elements in the international economic system that could serve as significant obstacles to national development efforts.

If there are obstacles in the international economic system, it is important that the post-2015 development agenda and the SDGs address the question of the elimination or the reduction of these obstacles.

The limited number of successfully developing countries since the 1950s has provoked a debate over whether the success of these countries required it to elude international obstacles to development.

The question is to evaluate features of the international system on the basis of how these features are conducive to enabling longterm investment toward economic diversification.

Terminologies of previous development orthodoxies litter the development literature—import substitution, industrialization, basic needs, structural adjustment, Washington Consensus and MDGs. Each of these orthodoxies tended to be a reaction to perceived weaknesses or missing elements from the immediately previous one. The most recent orthodoxy, as exemplified by the MDGs, is that development is about poverty eradication.

But poverty eradication is an overly narrow, possibly misleading, perspective on development.

Poverty eradication is a desired outcome of development, but its achievement is permanent only with the movement of a significant proportion of the population from traditional, subsistence jobs to productive, modern employment.

Pride of place THE association of development with poverty reduction created for the donor-community the pride of place in economic policy in developing countries.

But this place can be at the cost of reducing the responsibility of donorcountries in helping to maintain an enabling international environment for development in trade, finance, human-resource development and technology.

In the MDGs these issues are crammed into the “MDG-8”, the so-called global partnership for development, with a very selective and poorly defined set of targets.

Development requires not just higher levels of income, nutrition, education and health outcomes, but, in the first place, involves higher levels of productivity and capabilities.

Higher levels of productivity and capabilities are possible only with the structural transformation of the economy.

In turn, in most societies, according to a report by the Secretary-General of the United Nations Conference on Trade and Development (Unctad), such a structural transformation has been “associated with a shift of the population from rural to urban areas, and a constant reallocation of labor within the urban economy to higherproductivity activities.”

Structural transformation is only possible with substantial and sustained investment over decades in new activities and products, not just

in antipoverty programs.

Where the international economic system is hostile to investment in new, productivity enhancing economic activities is where its elements create obstacles to development.

One example of an externally based obstacle is aid volatility, which has been shown to have highly negative impacts on macroeconomic performance and domestic investment.

Capital and technological investments are required to overcome the enormous productivity gap between developing and developed countries that characterizes the world economy.

In 2008 a ratio of the average gross national income per worker in the member-countries of the Organization for Economic Cooperation and Development (OECD) versus those in the least developed countries (LDCs) was 22:1 in favor of the OECD countries.

This imbalance has worsened by a factor of five in comparison to the earliest days of capitalist development. In the 19th century, taking the Netherlands and the United Kingdom as the richest countries and Finland and Japan as the poorest, the productivity gap was only between 2 to 1 and 4 to 1.

The international economic system is lacking crucial mechanisms for delivering long-term, stable resources required by developing countries to upgrade their capabilities.

Dependence on commodity exports sustains the productivity gap between developed and developing countries.

Abundant global liquidity and growing trade imbalances fueled a commodity boom in the 2000s, which benefited many developing countries, including many LDCs.

Serious economic crises

ALL previous global liquidity booms had ended with serious economic crises in developing countries. The more recent commodity price boom did not introduce an enduring improvement in macroeconomic balances, especially for low-income countries (LICs).

While in the 2000s LDCs experienced the strongest growth rates

since 1970s, according to Unctad, more than one-quarter of LDCs actually saw gross domestic product (GDP) per-capita decline or grow slowly in the 2002-to-2007 global boom.

Even the middle-income region of Latin America presents evidence of insignificant structural improvement in fiscal and currentaccount balances.

Previous commodity boom periods had similarly not been an occasion for structural change in LDCs. Unctad suggests that, between the 1970s and 1997, manufacturing, as a proportion of GDP, increased by less than 2 percentage points in LDCs as a group, a period that saw various episodes of commodity and global liquidity booms.

When considering LDCs from Africa alone and including Haiti, manufacturing fell from 11 percent to 8 percent during the same period.

Developing countries had extensively liberalized their trade regimes in the 1980s. In the aftermath, Unctad finds that some LDCs have more open-trade regimes than other developing countries, and others are more open than even developed countries.

These policies had been intended to facilitate economic diversification.

Instead of the expected outcome, greater trade liberalization has been accompanied by greater concentration in the structure of exports.

The international economic system labors under the constraint that the highest decision-making bodies in key institutions, such as the International Monetary Fund, do not provide sufficient voting weight and policy influence to countries most affected by their operations.

One effort under way, but under enormous political obstruction, is the updating of voting weights in line with the changed economic structure. Even the Group of 20, which includes the important developing countries, has been unable to advance progress.

Manuel F. Montes is the senior advisor on finance and development at the Geneva, Switzerland-based South Centre, an intergovernmental organization of developing countries that functions as an independent policy think tank.

2nd Front Page BusinessMirror

A12 Monday, November 17, 2014

FIRST GEN’S SANTA MARIA OUTPUT TO GO TO D.U.s

By Lenie Lectura

F

IR ST Gen Cor p. of the Lopez group revealed last week plans to offer the output of the 414-megawatt (MW) Santa Maria natural-gas plant to distribution utilities (DUs).

“We can’t do it merchant. We’re offering it to the market and it can be a timely investment to meet additional supply requirements by 2017,” First Gen President Francis Giles Puno said.

The Santa Maria power facility is an expansion of the power firm’s San Gabriel natural gas-fired power plant in Santa Rita, Batangas.

The second unit of the San Gabriel power plant will be named Santa Maria and will cost about $500 million.

“We’re working on Santa Maria right now. We have to make a decision next year if we want it online for March 2017,” Puno said.

The company negotiated a deal See “First Gen’s,” A2

www.businessmirror.com.ph

Belmonte to prioritize economic Cha-cha, competition law, BBL

A

By Jovee Marie N. dela Cruz

S Congress resumes session on Monday, the leader of the House of Representatives vowed to pass measures that will attract foreign direct investments (FDI).

Speaker Feliciano Belmonte Jr. said that, to make the country globally competitive in attracting FDI and to spur productivity and employment generation, the lower chamber would prioritize the amendment of economic provisions of the Constitution, or the so-called economic Chacha, that are deemed restrictive and counterproductive.

“Relaxing [the Constitution’s] economic provisions would make the country competitively attrac-

tive to foreign investments, capital and technology in utilities, media, education, among others,” he said.

Belmonte said also included in their priorities are the establishment of a national competition policy to institute a more level playing field for business; and the passage of the Bangsamoro basic law (BBL), which would usher and promote wider peace, order and development, while ensuring self-determination and self-governance among Filipino

Belmonte: “Relaxing [the Constitution’s] economic provisions would make the country competitively attractive to foreign investments, capital and technology in utilities, media, education, among others.”

Muslims in Mindanao.

“Investments will not be attracted to our country by accident,” Belmonte said, adding, “We need to establish a more level playing field for business to flourish, while implementing peace and order.”

The Resolution of both Houses No. 1, filed by Belmonte and Sen. Ralph Recto, is eyeing to amend economic provisions on the 60-40 rule that limits foreign ownership of certain activities in the Philippines.

The resolution, which is now at the plenary for deliberations, will include the phrase “unless provided by law” in the foreign-ownership provision of the Constitution, particularly land ownership, public utilities, natural resources, media and advertising industries.

Under Article XII of the Constitution, foreign investors are prohibited to own more than 40 percent of real properties and businesses, while they are totally restricted to exploit natural resources and own any company

in the media industry.

Also recently the House Committee on Trade and Industry and the House Committee on Appropriations approved a consolidated bill on Philippine fair competition.

Belmonte, also the main author of the consolidated bill, said the Philippine Fair Competition Act has been included in the priority bills of the Palace and 16th Congress.

According to Belmonte, the measure aims to minimize, if not totally eradicate, unfair competition, monopolies and cartels.

The bill also heavily penalizes monopoly, anti-competitive mergers and other unfair trade practices.

Belmonte, meanwhile, said the proposed BBL is still under thorough scrutiny and deliberation of the 75man Bangsamoro ad hoc committee headed by Pwersa ng Masang Pilipino Rep. Rufus Rodriguez of Cagayan de Oro City.

MANILA TO JOIN COMMITTEE ON FISCAL AFFAIRS OF OECD

By David Cagahastian

T

GREEN TRANSPORT Philip Apostol, Green Frog Hybrid Buses managing director; Wilberto Suansing, Land Transportation Franchising and Regulatory Board head; and Dave Rafael, SM Prime Holdings Inc. Commercial Properties head, are seen at the launch of the Green Frog low-emission hybrid buses from Green Frog Zero Emissions Transport. Traveling to the sprawling lifestyle and entertainment hub that is the SM Mall of Asia (MOA) in Pasay City is now made safer, comfortable and more environment-friendly through these buses, which run using 20-percent diesel and 80-percent electricity. The route is divided into three zones, and passengers pay as low as P10 for Zone 1 (MOA to Light Rail Transit), P20 for Zone 2 (LRT to C-5-Buting); and P30, which covers Zones 1 and 2 (MOA to C-5-Buting). NONIE REYES

HE Philippines will be joining the Committee on Fiscal Affairs (CFA) of the Organization for Economic Cooperation and Development (OECD) that will allow the Philippines to take the lead in addressing revenue-base erosion and profit-shifting (BEPS) practices that are considered as unfair tax avoidance and, at times, outright tax evasion.

The Department of Finance (DOF) said the Philippines will use its stint at the CFA, which will start in January 2015, to “present developing country perspectives and priorities, as well as shape strategies, tools and other outputs to curb the global BEPS phenomenon.”

The CFA is the steering, standard-setting and decision-making body of the OECD concerning fiscal affairs. The OECD considers BEPS as “a global problem, which requires global solutions” because multinational corporations employing BEPS strategies, in effect, exploit gaps in domestic and international tax rules by shifting their profits to locations that are considered tax havens, where little-to-no economic activity or income has accrued.

Internal Revenue Commissioner Kim Jacinto-Henares, who was recently appointed by United Nations (UN) Secretary-General Ban Ki-moon as a UN international tax expert, said that BEPS is unfair because it allows multinational corporations to rake in huge profits without paying taxes where they are due.

“We look forward to developing international tools to combat base erosion and profit-shifting. Together, we can address a fundamentally unfair practice where multinationals make a huge profit in countries they pay little-to-no taxes to. We expect these corporations to at least contribute to building and developing the nations they made huge profits from,” Henares said in a statement.

Tax-planning made resulting to BEPS is technically legal because it exploits gaps and loopholes that are inherent in the differing types See “OECD,” A2

4M PEOPLE TOOK CEB FLIGHTS IN JULY-SEPT US, Japan, Australia agree to deepen ties on maritime security Continued from A1

But, despite favorable passenger volumes, the airline’s losses widened in the third quarter due to higher operating expenses.

It posted a net loss of P1.1 billion for the period under review, significantly higher than the P750.1-million loss in the same three-month period the year prior.

Total revenues increased by 32.4

percent annually to P11.7 billion in the third quarter of the year, as passenger revenues surged by 34.2 percent to P8.9 billion, and ancillary revenues rose 27.9 percent to P2 billion.

Expenses, on the other hand, grew to P11 billion from P9.5 billion, resulting in the widened losses in the third quarter.

However, its bottom line expanded by more than 213 percent to P2.1 billion in the first nine months of 2014, from P664.1 million in 2013.

PLDT . . . continued from a1 services launched earlier this year, gives the country’s Internet service a fresh boost by enabling more Filipino homes to gain ready access to multimedia services, like social media, movies, games and music through fourth-generation wireless-broadband platform.

“We are bringing all these digital services within reach of more Filipino

homes across the country with our various plan options,” Fermin added.

The Pangilinan-led firm reported a core net profit of P28.6 billion, 1 percent lower than the P28.8 billion recorded in the same period in 2013 due mainly to the rise in cash operating expenses, particularly rent and maintenance costs, an increase in product subsidies and a higher

In the same comparative periods, revenues rose by 25.7 percent to P38.4 billion from P30.6 billion, while expenses surged by a slower 25.3 percent to P35.6 billion from P28.4 billion.

The airline’s 52-strong fleet is comprised of 10 Airbus A319, 29 Airbus A320, five Airbus A330 and eight ATR-72 500 aircraft. Between 2015 and 2021, CEB will take delivery of nine more brand-new Airbus A320, 30 Airbus A321neo and one Airbus A330 aircraft. Lorenz S. Marasigan

provision for income tax.

In the same comparative periods, net income declined by 3 percent to P28 billion from P29 billion due to the dip in core net income, and the absence of the contribution from discontinued operations recorded in the said period.

Shares of PLDT closed at P2,996 apiece on Friday. Lorenz S. Marasigan

An Obama administration official said the three-way meeting had been in the works for a year. Beyond military cooperation, the leaders also discussed the US-led campaign to defeat Islamic State militants in the Middle East, combat the spread of the deadly Ebola virus in West Africa, and stop Russia’s destabilizing actions in Ukraine.

The conflict between Russia and Ukraine has been of particular concern in Australia, which lost 38 citizens when Moscow-backed rebels downed a commercial airliner earlier this year.

Australia was Obama’s last stop on a weeklong trip that began in China and Myanmar. He arrived politically weakened at home by the Democratic Party’s election defeats on November 4. The president has tried to show the region’s leaders that he retained the ability to deliver on promises to Continued from A1

deepen US engagement in Asia and the Pacific, an effort he sees as a central part of his foreign policy.

“There are times when people have been skeptical of this rebalance, they’re wondering whether America has the staying power to sustain it,” Obama said. “I’m here to say that American leadership in the Asia Pacific will always be a fundamental focus of my foreign policy.”

In China he emerged with an ambitious agreement to reduce greenhouse-gas emissions, as well as a deal to extend visa lengths and move forward on tariff reductions on hightech goods.

But, despite those areas of agreement, there are major sources of tension between the powers, particularly Beijing’s provocative actions in territorial disputes on waters off its borders.

The conflict between China and Japan over a string of uninhabited

islands in the East China Sea has been intense, with Beijing setting up an air defense zone over the area last year that was denounced by the US. During a trip to Tokyo this year, Obama pledged to fulfill America’s treaty obligations to defend Japan if it were to come under attack from China as part of the conflict over the islands.

In recent days, China and Japan have acted to try to ease tensions. Xi and Abe held their first-ever meeting in Beijing this past week, a discussion the Japanese leader called a “first step” toward reconcilation.

Australia, the G-20 host, has played an important role in Obama’s efforts to bolster the US military presence in the region in order to be a counterweight to China. During a trip to Australia in 2011, Obama announced a plan to rotate 2,500 US Marines through a military base in the northern city of Darwin. AP