Businessmirror october 05, 2015 by BusinessMirror

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A broader look at today’s business Thursday 2014 Vol. No. 40Vol. Monday,18, October 5, 10 2015 10 No. 361

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‘Rich countries must fund fight vs climate change’ T

INSIDE

he Philippines will push for financial and technical support from industrialized countries to address problems brought about by climate change. Less developed countries, like the Philippines, are most prone to climactic changes and are estimated to be losing at least 2.5 percent of their local output, measured as the gross domestic product (GDP), each year due to such changes.

why we love Beauty kits

Young people with hope

ear God, we pray that young people will value their lives. We pray that they stay away from harmful vices and be filled with hope instead by knowing Jesus and having a free heart. We ask You, Father, to give us a free heart that is not enslaved by any evil in the world—a heart that is not enslaved by the desires of a comfortable life or by false liberty. Liberty is a gift from You and we must know how to receive it. amen. Message to the Youth bY PoPe Francis in ParaguaY shared bY Louie M. Lacson Word&Life Publications • teacherlouie1965@yahoo.com

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

Life

ALL ACCESS:

WISHING UPON A STAR

»d3

BusinessMirror

Monday, October 5, 2015 D1

Why we love beauty kits and then soMe

Dinna chan vasquez

BENEfiT’S Operation Pore-Proof kit that includes the iconic Porefessional, Agent Zero Shine Powder, License to Blot, Dr. feelgood and the Shy Beam. DINNA CHAN VASQUEZ

f you are a fan of Benefit Cosmetics because of the brand’s cute packaging and witty names but have never tried a single product, their kits are a good way to do so. They are less expensive than the full-size products in that you get so many items and you can actually take them out of the boxes for traveling. The kits usually contain smaller sizes of the products plus the packaging is always adorable and witty. When you enter a Benefit boutique, these kits will immediately catch your eye. I know that you’re supposed to throw away makeup after some time but I’m still using the Groovy Kind-a Love palette from two Christmases ago because of the eyeshadows. I also love the Dandelion/Gimme fever combination blush. The other contents of the kit like Porefessional and Benetint are long gone but I still love the shadows (neutrals) and blush. My current favorite is Operation PoreProof, which has four products to give you a

matte complexion. The kit includes the iconic Porefessional, Agent Zero Shine Powder, License to Blot and Dr. feelgood. It also gives a sneak preview of Shy Beam, a matte highlighter that Benefit will launch next year. I already have all of the products except Dr. feelgood and Shy Beam, so this kit was something I really looked forward to unboxing it. At P1,900, Operation Pore-Proof is a good buy. Do The Hoola, meanwhile, has Hoola Bronzing Powder, Hoola Ultra Plus Lip Gloss, Bene Balm and Dew The Hoola, a liquid bronzer that Benefit will also release next year. I also love Benefit’s holiday kits. for the third year in a row, the brand is using tins for its holiday collections. These tins combine form and function because once you’re done with the products, one can use the containers as storage for little things like hair ties, makeup brushes and even deluxe makeup samples. Like most beauty brands, Benefit comes up with a holiday collection every year. Yes, they’re mostly kits. for Holiday 2015 the best seller is expected to be Real Cheeky Blushing Beauty Kit (just like last year’s Cheeky Sweet Spot), which includes Rockateur, Hoola, Dandelion, Coralista and Sugarbomb. for P1,900, you also get They’re Real Mascara and Push-Up Liner. That’s not a bad deal at all. I also have my eye on Party To The Peepers!, which includes Creaseless Color Wash in Peach Party, Honey Talks and Go Taupeless and They’re Real Mascara. The Creaseless Color Washes are

limited edition and this is what makes this kit a must-have. Of course, Benefit is releasing an Advent Calendar, called Party Poppers, with 12 of its best-selling products. What makes this year’s edition of the calendar a great gift is that it’s like a musical box that plays music when you open it. It’s been a good year for the brand. It launched They’re Real Mascara and Push-Up Liner in color. Another release was Puff-Off, an under eye gel meant to address puffiness. Benefit also released Roller Lash, which has Hook ‘n’ Roll brush grabs to separate, lift and curl lashes. Last week the brand launched Air Patrol, a BB cream eyelid primer with SPf 20 and enviroDefend complex which “help guard your delicate eyelids against environmental stress.” It claims to color correct, lock on eye shadow and hydrate. The applicator is called Cushion Calm tip, which was inspired by gel foam mattresses and pillows. “This year it was about ingenious applicators. The new products addressed specific beauty concerns with applicators that do the job. Air Patrol’s Cushion Calm tip, for example, is even softer than your pinky finger so it’s gentle on your eyelid,” says Donna Shaw, brand manager at Benefit Cosmetics Philippines. Here’s more good news for fans of Benefit: there will be a new branch opening in one of Metro Manila’s most popular malls in October.

By Lili Pettit Who What Wear

1. PURSE COVERS WITH PHOTO POCKETS

Purses need a dust cover to keep out the dust and avoid sun damage or fading, and having an added pocket on the side for a photo helps to keep everything clearly visible even while protected.

2. BOOT SHAPERS

These soft quilted inserts keep your boots impervious from getting cracked or wrinkled due to sagging. They come in short and tall versions, so you can get them for every pair you own.

3. COTTON SHOULDER PROTECTORS

If there are infrequently worn coats, suits, or dresses in your closet, a product like this is an easy fix to ensure they aren’t accumulating dust while they wait in the wings.

4. DELICATE LAUNDRY SOAP

Laundry is an essential part of preserving your clothes. Using soap with a delicate formula will keep your clothes in the best shape possible. for the best results, invest in a good hamper, and make sure to avoid hanging dirty clothes back up next to clean ones. And if you dry clean often, be sure not to leave your clothes sitting in the dry cleaner’s plastic laundry bags or left on wire hangers.

5. SWEATER STONE

If you’re a sweater person, you’re probably familiar with the sinking feeling you get at the sight of pilling. Those little balls that bead up used to be a deal-breaker, but no longer. Using this handy little stone, you can rescue even your most precious cashmere.

6. PURSE STUFFERS

Purse stuffers help your favorite bags retain their shape. They’re easy to use and slip out quickly in the event of purse transfers. Just remember that it’s important not to stack your purses next to each other without a dust cover. The pigment in some materials—like patent

n E-mail the author at luckydinna@gmail.com.

UHAN, China—Venus Williams won the Wuhan Open on Saturday when her Spanish opponent and fifth-seeded Garbine Muguruza retired with a left ankle injury while trailing 6-3, 3-0. It was the unseeded Williams’s 47th Women’s Tennis Association (WTA) singles title. “It’s not easy when you don’t play your best,” Williams told Muguruza, adding that, “I probably didn’t have a chance if you felt well.” Muguruza said she was “very sorry” at having to retire. Williams rallied from 5-3 down in the third set of the quarterfinals to beat British qualifier Johanna Konta, and she saved a match point during a 5-7, 6-2, 7-6 (4) semifinal win over Roberta Vinci. Both finalists are projected to make major moves up the rankings—Williams from No. 24 to No. 14 and Muguruza from No. 8 to No. 5, her top-five debut. Earlier on Saturday Martina Hingis and Sania Mirza beat Irina-Camelia Begu and Monica Niculescu in straight sets in the doubles final. The winning duo dropped serve three times and had to fight back from a 2-0 deficit in the second set, but the No.1seeded Hingis and Mirza won 6-2, 6-3. The Swiss-Indian pairing have seven WTA doubles titles this year and have won their last three tournaments in a row—the US Open, Guangzhou and Wuhan—and 13 straight matches. In Beijing sixth-seeded Ana Ivanovic beat Casey Dellacqua of Australia 6-4, 6-0 on Saturday to advance to the second round of the China Open. Ivanovic was broken twice in the first set, but Dellacqua won less than half the points on her own serve as the Serb wrapped up the victory in little more than an hour. Madison Keys of the US also advanced by beating Kristina Mladenovic of France 7-5, 6-2, breaking her opponent five times. In other first-round matches, 12thseeded Timea Bacsinszky of Switzerland, Wang Qiang of China, Teliana Pereira of Brazil, and Svetlana Kuznetsova of Russia all advanced. Bacsinszky rallied to beat Camila Giorgi of Italy 1-6, 6-4, 6-3, while Wang ousted American Varvara Lepchenko 6-2, 3-6, 6-2. AP

Quality hangers are excellent for saving space and organizing, but they are also important for extending the life of your clothes. Wire hangers can ruin shoulders and cause the fabric to stretch out of shape. These velvet hangers keep your clothes in excellent condition instead. If you have the space for wood or padded hangers, they’re great for keeping shoulders in the right place and free from hanger marks too.

BOOT SHAPERS

10. CEDAR/LAVENDER

Cedar and lavender are both natural moth repellents, as well as deliciously aromatic. They do double duty keeping your wardrobe safe in storage and smelling great. You can find drawstring sachets, beautiful scent dispensers, or buy them on their own. There are a multitude of options! Gone are the days of noxious solutions, now you can have fragrant herbal mixes instead to keep your clothes protected.

8. QUICK-FIX KIT

It’s a good idea to be prepared in advance for life’s little misadventures. If you can quickly repair little tears and snags, you’ll be able to prevent any further damage and keep your favorite items longer. In addition, lint rollers and wardrobe tape are great to have on hand at a moment’s notice.

n Proclutter cleaner Lili Pettit is known for transforming and organizing several celebrity wardrobes, including Jessica Alba’s.

LAVENDER SACHET

life

SWEATER STONE

9. DEODORANT REMOVING SPONGE

No more dabbing at light stains on dark clothing! This nifty little eraser easily takes up white deodorant marks for an effortless look. If you’re out on the

BusinessMirror

By Rob Harris

The Associated Press

URICH—Clinging to power after rebuffing resignation demands, Sepp Blatter received some respite on Saturday when two sponsors declined to join four other International Football Federation (Fifa) corporate backers in demanding the president of world soccer’s governing body goes before the emergency election in February. In a seemingly coordinated move, Budweiser, Coca-Cola, McDonald’s and Visa initiated their strongest interventions as sponsors on Friday in requesting Blatter’s immediate exit from Fifa. The 79-year-old Blatter remains defiant in the face of a criminal investigation into alleged financial wrongdoing, insisting that his departure would not be in the best interests of Fifa as it responds to the corruption crisis by fast-tracking reforms. However, a decision over Blatter’s future might be taken out of his own hands if Fifa’s ethics committee suspends him. Blatter’s initial recruitment by Fifa in the mid-1970s

Member-countries will also prepare for the V20’s concerted contribution for the COP21 Meeting in Paris this December. The targeted sources of funding for the V20 Action Plan are industrialized countries, which account for the biggest greenhouse-gas emissions causing climate change. Members of the V20, on the other hand, include least developed, lowincome and middle-income countries that lack resources to combat See “Climate change,” A2

Sans stiffer penalties vs illegal fishing, PHL could lose sardines, ‘bagoong’

| Monday, oCtober 5, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

SeRBIA’S Ana Ivonovic watches her serves against Casey Dellacqua of Australia during the China open tennis tournament. AP

ADIDAS, KIA DoN’T joIN US BRANDS IN DeMANDINg BlATTeR QUITS

town and caught without one, rub the piece of fabric with the stain against part of the same garment and the stain will dissolve.

7. QUALITY HANGERS

STAYING PUT Sports

Venus victorious in Wuhan Open; Ivanovic advances

leather—will bleed together if they touch.

The Philippines will lead the socalled Vulnerable Twenty (V20), a group of countries that are highly prone to the adverse effects of climate change, in an inaugural meeting in Peru this week. Finance Secretary Cesar V. Purisima will lead the V20 as chairman in the inaugural meeting, where it is expected that the V20 Action Plan will be adopted, outlining a concerted response to strengthening resilience and mitigating the impact of climate change.

special report

the clothing care products every girl should own Ove your wardrobe? Don’t let potential hazards in your closet tear the two of you apart! As a Clutter Healer, I see tons of closets every year—it’s always a bummer to watch someone lose an investment bag or favorite sweater just because it was lost in the shuffle of things and got damaged. If you don’t take precautions to guard and protect your clothes, you may be forced to part ways with beloved belongings before you’re ready. Luckily, there are some excellent products in the market to help give your clothes the A-list treatment. It’s never been easier. Here are my clothing care product picks to help you keep your clothes longer and looking better than ever:

By David Cagahastian

Sepp BlATTeR gets some respite when two sponsors won’t join the call for his immediate resignation. AP

STAYING PUT

was assisted by then adidas boss Horst Dassler, initially to run development programs funded by Coca-Cola. While the soft drinks firm was the first sponsor on Friday to demand Blatter quickly vacates Fifa’s Zurich headquarters, adidas is remaining more loyal—for now—with a statement that did not reference the embattled leader of world soccer. “Fifa must implement fundamental changes for the sake of football,” adidas told the Associated Press (AP). “Therefore, the initiated reform process must continue quickly and transparently.” Adidas, which has provided the match ball for every World Cup since 1970, has a deal with Fifa through 2030. Kia, which has sponsored Fifa with corporate affiliate Hyundai since 1999, would also not discuss Blatter’s future. “We, at Kia, do not have any comment at the present time regarding Sepp Blatter or our current Fifa sponsorship status,” the South Korean firm said. Kia didn’t respond when asked if that meant its Fifa deal, which runs through 2022, is no longer certain. Russian state-controlled gas company Gazprom,

which has signed up as a Fifa sponsor for the 2018 World Cup in Russia, did not respond to an e-mail seeking comment. Kia and Gazprom did not attend an August meeting at Fifa with sponsors which was initiated following the arrest of seven officials two days before the Fifa Congress in May. But four big American brands have waited until now to reveal that they have lost patience with Fifa’s leader of 17 years. They did not threaten to withdraw their sponsorship after Blatter quickly snubbed their resignation pleas. Soft drinks firm Coca-Cola and fast food giant McDonald’s both said on Friday that the Fifa reform process lacked credibility with Blatter still in power. Visa, which has a Fifa deal through the 2022 World Cup, said “no meaningful reform can be made under Fifa’s existing leadership.” Brewer Anheuser-Busch InBev, whose Budweiser branding has appeared on advertising signage in World Cup stadiums since 1986, denounced Blatter’s continued employment at Fifa as an “obstacle in the reform process.”

Former Fifa anticorruption adviser Mark Pieth questions why the quartet of sponsors is only now voicing concerns about Blatter. Pieth said Coca-Cola in 2011 declined to join his panel that was trying to spearhead reforms of Fifa following a series of corruption scandals. “The problem is that now suddenly sponsors are com ing out of bushes when things are getting relatively easy for them,” Pieth told the AP. “They would have been eminently helpful some years ago, starting in 2011 with that process. They could have really added weight to what we had been doing and pushed it further. “Instead they chose to stay aloof. Now that things are deteriorating, they are suddenly coming out and saying, ‘It’s really bad.’” Referring to the sudden calls for Blatter’s exit, Pieth said: “You don’t beat a dead horse, do you?” Swiss prosecutors allege that Blatter undervalued World Cup broadcasting contracts for the Caribbean sold to disgraced former Fifa Vice President Jack Warner in 2005. Blatter, who denies any wrongdoing, was also questioned over an allegedly “disloyal payment” of 2 million

Swiss francs (now $2.04 million) in 2011 from Fifa to Union of European Football Associations President Michel Platini for work carried out at least nine years earlier. Platini is being treated as “between a witness and an accused person” by Swiss investigators. Platini has faced questions from European federations about his explanation that he only requested payment in 2011 because Fifa couldn’t afford to pay him in full when serving as Blatter’s adviser between 1998 and 2002. Platini, a former player and manager with the French national team, has now received the support of his government. “He feels like he is clean, and he wanted to say it again in order to reassure me,” French Sports Secretary Thierry Braillard was quoted as saying in L’Equipe newspaper after speaking with Platini by telephone. Platini is the favorite to succeed former mentor Blatter in the February 26 election. Like all candidates facing an October 26 deadline to submit candidacies, Platini has to pass eligibility and integrity checks.

CANADA’S AUBUT QUITS AMID INQUIRY

ONTREAL—Marcel Aubut resigned on Saturday as president of the Canadian Olympic Committee (COC) while under investigation for a sexual harassment complaint. The committee said in a statement its investigation now ends. Since the original complaint, two other women made allegations against Aubut. On Friday the organization began a second investigation to examine any further complaints. The committee said the matter is “deeply concerning” and has had a “profound impact on our Olympic family.” Its board shortly will begin looking for an interim president. The 67-year-old Aubut called the situation a “major distraction that obscures the COC’s real goals.” He added in a statement that his involvement “jeopardizes the organization’s smooth operations and may have repercussions that ultimately affect Canadian Olympic athletes.” Aubut already had temporarily stepped aside as committee president and chairman of the Canadian Olympic Foundation. The committee had retained a former chief justice of the Quebec Superior Court to investigate the initial complaint. Aubut was chief executive officer of the National

Hockey League’s Quebec Nordiques until the team moved to Colorado in 1995. He was inducted into Canada’s Sports Hall of Fame in 1999. He is a partner at the Montreal law firm BCF, which said on Wednesday it would not comment on the investigation. BCF added that Aubut’s position at the firm was not at risk since the allegations did not directly involve his professional activities. On Thursday Montreal lawyer Amelia SalehabadiFouques gave several interviews about her interactions with Aubut, while Canadian broadcaster TVA aired an interview with a woman the television network said worked closely with him. Neither woman has filed a complaint with the COC. Salehabadi-Fouques, who specializes in sports law and has been a Canadian Soccer Association board member since 2013, says she was harassed by Aubut three times, beginning when she met him four years ago. She contends he forced a kiss during their first meeting and made sexually charged comments during their next two encounters. In the TVA interview, a woman alleged she was sexually harassed several times in 2011 when Aubut was working at a Montreal law firm. The woman was not identified but the network said she worked with him. AP

sports

CANADIAN olympic Committee president Marcel Aubut is being investigated for sexual harassment complaint. AP

C1 Bantay Dagat members, who guard the sea of Cadiz Negros Occidental to prevent illegal fishing in the area, rest at the sand bar where their watchtower is located. NONIE REYES By Alladin S. Diega Correspondent

BusinessMirror media partner

First of three parts

anned sardines and bagoong (shrimp paste) are two of the most affordable food items for poor Filipinos. But these food items, the government warned, could disappear from their tables if nothing is done to curb illegal fishing. To put more teeth into existing fishery regulations, the Philippines recently put in place Republic

Act (RA) 10654. The new law amended RA 8550, otherwise known as the Philippines Fisheries Code of 1998. A few weeks ago Agriculture Secretary Proceso J. Alcala signed the implementing rules and regulations (IRR) of the amended law. While the intention of the new law is to prevent illegal fishing, some commercial fishermen continue to protest its IRR is “restrictive and inhumane.” Their opposition centers on the stiffer fines imposed by the amended fisheries code as these now range from P500,000 to P10 million. The pre-

vious law requires violators to pay only as much as P500,000. The recently signed IRR covers specific procedures on how to impose the penalties to fishermen who commit illegal fishing. It also lays down the guidelines on the enforcement of various fisheriesconservation measures. One of its salient features is the requirement of Vessel Monitoring Measures (VMM) for Philippineflagged commercial fishing vessels operating Continued on A2

NEW TICKETING SCHEME WON’T SOLVE MRT 3 WOES–SOBREPEÑA SOBREPEÑA:“It’s pointless that you have a fast ticketing system and, yet, you have a broken down train system. It’s a fast ticket getting nowhere.”

By Lorenz S. Marasigan

hile the country’s three overhead railway systems already shifted from the magnetic ticketing scheme to the unified, tap-and-go setup, the builder and owner of the Metro Rail Transit (MRT) Line 3 is not convinced the migration will make any difference to the train’s messy situation. Saturday marked the completion of the rollout of the automated farecollection system at all of the country’s elevated train lines, with the last one being the 16-year-old MRT, the most congested railway system in Metro Manila. With the new system in place, the old magnetic cards—both single journey and stored value—will no longer be on sale. According to Peter Maher, the chief executive of AF Payments Inc., the new system should not only improve the riders’ buying and paying experience, but should also facilitate seamless transfer between lines with the card’s interoperability feature. “Train passengers will no longer need to fall in line twice to buy a new ticket when they transfer lines,” he said. But according to MRT Holdings Inc. Chairman Robert John L. Sobrepeña, the new system is “pointless” sans the new trains and better rails. He was speaking for the Edsa line specifically. “It’s pointless that you have a fast ticketing system and, yet, you have a broken down train system. It’s a fast ticket getting nowhere,” he said in an interview with the BusinessMirror. The government, he said, should have carefully pursued its priorities. “They should have improved the capacity by adding more trains and repairing the rails first before procuring a ticketing system,” Sobrepeña said. Government officials were sought for comment, but none was available as of press time. The government, however, has started the procurement of new train coaches, with the prototype cars arriving last month. Dalian Locomotive and Rolling Stock Co. won the project in 2013 Continued on A2

PHL bats for Apec action plan to protect marine resources By Mary Grace Padin

he Philippines urged membercountries of the Asia-Pacific Economic Cooperation (Apec) to come up with an action plan to address the threat of unsustainable fishing practices and environmental degradation. Agriculture Secretary Proceso J. Alcala

said there is a need for Apec member-countries to strengthen their cooperation to protect marine resources. “Food is basic need. As one community, we ought to put strength and ideas together to ensure that there will always be safe and nutritious food on the plates of our citizens,” Alcala said in his welcome remarks at the opening ceremony of the Apec High-Level

PESO exchange rates n US 46.7050

Dialogue on Food Security and Blue Economy, which kicked off on October 2 in Iloilo City. He noted that the Pacific Ocean is shared by all Apec countries. Countries in Southeast Asia, including the Philippines and Indonesia, source tuna from the Pacific Ocean. Last year Greenpeace Philippines disclosed that there was rampant catching and trading of juvenile yellowfin and big eye tuna

at the General Santos fish port. The group said these juvenile tuna were found to be the average size of 1 meter in length and below the weight limit of 500 grams set by Fisheries Administrative Order 226. “Sharing the same resource means sharing the responsibility of protecting and conserving it, not only for our economies today but also for future generations,” Alcala said.

Alcala and Environment Secretary Ramon J.P. Paje chaired the two-day meeting, which forms part of the lead-up activities to the Apec Economic Leaders’ Meeting in November this year in Manila. In his message, Paje expressed optimism that the forum would come up with a policy commitment to make oceans and coastal resources in Asia Pacific more resilient.

n japan 0.3895 n UK 70.6693 n HK 6.0266 n CHINA 7.3394 n singapore 32.6494 n australia 32.9558 n EU 52.2395 n SAUDI arabia 12.4547 Source: BSP (2 October 2015)

A2 Monday, October 5, 2015

BMReports BusinessMirror

news@businessmirror.com.ph

Sans stiffer penalties vs illegal fishing, PHL could lose sardines, ‘bagoong’. . . Continued from A1

outside the country’s waters and commercial fishing vessels of 30 gross tons (GT) and above which are operating within Philippine waters. The IRR on the Amended Fisheries Code also includes a provision on the use of active gears, such as purse seine, locally known as pangulong and ring net or taksay by small- and medium-scale commercial fishing vessels, which are allowed to operate in 10.1 to 15 kilometers off the shoreline. Big commercial-fishing vessels are banned within the area. According to lawyer Benjamin Tabios, director for policy and planning of the Bureau of Fisheries and Aquatic Resources (Bfar), during the crafting of the IRR for the amended law, fishermen recognized the need to immediately address the problem of illegal fishing. “Eventually, both those in the opposing sides realized that they are in the same boat, and the boat is sinking,” Tabios told BusinessMirror in an

interview, adding that science was“instrumental” in determining the extent of illegal fishing and the steps that need to be taken. “For example, we now know where, when, and how different species of fish spawn, which is critical in deciding when to allow fishing or temporarily ban,” he said, noting that even the commercial fishermen present at the meeting had to agree that closed season or temporary ban on fishing specific species in determined areas should have been practiced years earlier. In a separate interview, Ruperto B. Aleroza, National Anti-Poverty Commission (NAPC) sectoral vice chairman, said the amendment process has been an “eye opener” for everyone. For example, dulong, which is a popular fish viand usually cooked as omelet, is not actually a separate species but was spawned from different fish families, such as sardines and its relatives, making it illegal to catch it as it could be

only caught using fine-mesh nets, Aleroza said. In contrast, the small shrimp used for bagoong or shrimp paste, another local delicacy, is actually a separate species, so fishermen are allow to catch it, but not all-year round because studies have shown that the species is seasonal. The government continues to look into the months when alamang is abundant. Aside from weak penalties in the Fisheries Code of 1998, Aleroza said there were also not enough personnel to patrol the country’s waters. At the time, he said non-governmental organizations (NGOs) and environmental activists took it upon themselves to man the seas. Volunteers served as “bantay dagat” or sea wardens who patrol Philippine seas. According to Tabios, it was only during the Aquino administration that the enforcers of the fisheries law have grown to a respectable 778, from only 4. He said, however, that the current

number of enforcers is still not enough considering that the Philippines have roughly 36,900 kilometers of coastline that need to be monitored seven days a week. Tabios said bantay dagat or the sea-patrol movement was set up in the 1970s to help the government protect coastal waters, with members drawn from local fishermen who undergo training. The current national director of BFAR, Asis G. Perez, is a known advocate of the bantaydagat movement. Aleroza said small fishermen would benefit the most from more stringent measures against illegal fishing. Currently, there are 1.2 million small fishermen in the country. This number does not yet include their families. “If rampant illegal fishing is curbed, fish stock will improve. Eventually, this will benefit commercial fishermen because they would have more raw materials for their production,” he said. Many commercial fishermen who use bigger

New ticketing scheme won’t solve Mrt 3 woes–Sobrepeña. . . but was supposed to deliver 48 new cars starting end-2015. But the start of the staggered delivery will likely be delayed, with the first delivery expected in the first quarter next year. Once the 48 new coaches come in, MRT 3’s trips per hour will increase from 20 to 24 and translate to a 60-percent rise in passenger traffic per hour, per direction. This means there will be 37,824 passengers who can avail themselves of the rail service heading one way every hour. Currently, only about 23,640 people ride an MRT service one way every hour. But that number still depends on how many trains are running that day. Today the rail line’s average daily ridership is already over 560,000, and its highest single-day passenger count is 620,000. It has a rated capacity of 350,000 passengers per day. Every day passengers complain of long queues caused by the lack of light rail cars, humid coaches and inoperable elevators and escalators. These are all caused by the lack of proper maintenance, rehabilitation and upgrades.

‘Obsolete signaling system’

Aside from these problems, the train line also has an obsolete signalling system, Transportation

Secretary Joseph Emilio A. Abaya acknowledged. He blamed the private owner of the railway system for its negligence to upgrade the system. The signaling system for a train line is crucial in preventing the trains from colliding. It maintains a safe distance between trains and controls their speed: issues with its components may result in fewer operating trains and slower travel. Hence, train coaches cannot move forward without it. He noted, however, that problems arising from the lack of an efficient signaling system “are set to be eliminated soon,” as his office has awarded the signaling system-upgrade project to Bombardier Transportation Signal Ltd. “This upgrade of an obsolete signaling system, which should have been done by the private sector owner years ago, is crucial in minimizing operational disruptions. This will improve reliability and efficiency of the rail system for the benefit of our passengers,” the Cabinet official said. Under the P53.37-million contract, Bombardier will replace the existing local control system called MAN 900 with the more contemporary EBI Screen 900—a software with the same functionality as MAN 900, but will allow the use of modern personal computers and fiber optic technology—over the next

RIDGE OF HIGH PRESSURE AREA EXTENDING OVER NORTHERN LUZON (OCTOBER 4, 5:00 AM)

seven months. Apart from modernizing the software components, this upgrade will also ensure the availability of spare parts needed for the uninterrupted and efficient operation of Metro Manila’s busiest rail line. Within the first month of the contract, Bombardier will provide the required hardware upgrades and software licenses; install, test and commission support of the new system; carry out the migration of existing data and functions; and train MRT 3 personnel on proper operation and maintenance. Bombardier holds exclusive proprietary rights to supply new components, as it designed, developed and implemented the entire MRT 3 signaling system when it was constructed. To improve the train line, the government is rolling out P9.7 billion worth of projects to fix the ailing railway system. The government is also spending P4.25 billion for the three-year maintenance and the general overhaul of existing train coaches and the replacement of the system’s signalling system. The agency targets to award the contract within the fourth quarter this year to enable the latter to take over from the seven multidiscipline contractors currently maintaining the rail line by

boats can haul hundreds of tons of fish every single operation. More often than not, they fish in municipal waters where they are restricted, making it difficult for small-scale fishermen to compete because they do not have the requisite fishing gear. Under RA 10654, there will now be harvestcontrol mechanisms to limit fishing efforts based on the health of fishing grounds, including vesselmonitoring system that will tell authorities when and where exactly boats are fishing. It is now unlawful to fish or take, catch, gather, sell, purchase, possess, transport, export, forward or ship out aquatic species listed by the Convention on the International Trade in Endangered Species of Wild Flora and Fauna, or those categorized by the International Union for Conservation of Nature and Natural Resources as threatened, or those marine and aquatic species determined by the Department of Agriculture. To be continued

Continued from A1

January 2016. This long-term maintenance provider will not only undertake the regular maintenance requirements of the system over the next three years, it will also conduct the general overhaul of existing MRT 3 coaches, as well as the replacement of the signalling system. The general overhaul is needed in order to improve the condition of the 16-year-old coaches and the signalling system replacement will ensure safer operations throughout the line. The state also wants to buyout the corporate owner of the line. But several private groups have proposed a different scheme to modernize the train system, which has been under fire for years due to mediocre service. The group Sobrepeña is proposing to do a “quick fix” solution to make the train system safe for the riding public. Together with Sumitomo Corp. of Japan and Globalvia Infrastructuras of Spain, Metro Global Holdings Inc. is proposing to “fix” the ailing system through a $150-million investment involving the procurement of a total 96 new cars and the rehabilitation of the existing 73 coaches, increasing its capacity fourfold to 1.2 million passengers daily. Under the proposal, a single point of responsibil-

ity will be implemented: meaning the rehabilitation and maintenance of the line will be handled by a single company. Separately, Metro Pacific Investments Corp. (MPIC) is proposing to shoulder the upgrade costs of the train system and release the government from the bondage of paying billions of pesos in equity rental payments. The group of businessman Manuel V. Pangilinan, which earlier entered into a partnership agreement with the corporate owner of the MRT, intends to spend $524 million to overhaul the line. The venture would effectively expand the capacity of the railway system by adding more coaches to each train, allowing it to carry more cars at faster intervals. The multimillion-dollar expansion plan would double the capacity of the line to 700,000 passengers a day from the current 350,000 passengers daily. It was submitted in 2011, but the transportation agency’s chief back then rejected the proposal. On the other hand German firms Schunk Bahn -und Industrietechnik GmbH and HEAG Mobilo GmbH are seeking to place whole train system under a massive transformation program to augment its capacity and to provide a safe and comfortable travel to commuters from the northern and southern corridors of Metro Manila. The P4.64-billion proposal, submitted in February with Filipino partner Comm Builders and Technology Phils. Corp., calls for the complete overhaul of the 73 light rail vehicles of the MRT; the replacement of the rails; the upgrading of the line’s ancillary system; the upgrade of the track circuit and signaling systems; the modernization of the conveyance system; and a three-year maintenance contract. These proposals, however, are still gathering dust in Abaya’s office.

Climate change. . . Continued from A1

the adverse effects of climate change and are most prone to disasters because they are either surrounded by large bodies of water, are mountainous, and, therefore, prone to landslides, or have arid land. Aside from the Philippines, other V20 members are Afghanistan, Bangladesh, Barbados, Bhutan, Costa Rica, Ethiopia, Ghana, Kenya, Kiribati, Madagascar, Maldives, Nepal, Rwanda, Saint Lucia, Tanzania, TimorLeste, Tuvalu, Vanuatu and Vietnam. “Climate change is real—there’s simply no debate about it. Its devastating effects reach deep, jeopardizing sustainable economic growth, threatening food security and worsening the quality of life in many climate-vulnerable countries,” Purisima said in a statement. “What is even more unfortunate is that least developed, low-income and middle-income countries that contribute the least to climate change are the ones that suffer the most from its adverse effects. So it is true that this is a matter of social justice—we, the most vulnerable, call for accountability and global action on climate change. We look forward to charting a concerted path forward for a matter of plain survival,” he added. The inaugural meeting of the V20 will be attended by finance ministers and other ranking officials of finance ministries across the V20. It will also be attended by representatives from the World Bank Group, the United Nations, the International Monetary Fund and advanced economies, like France, Germany, Japan and the United States.

The Nation BusinessMirror

Editor: Dionisio L. Pelayo

Monday, October 5, 2015 A3

Aquino places twerking issue on LP’s shoulders

By Butch Fernandez

ALACAÑANG is awaiting the decision of Liberal Party (LP) leaders on the imposition of sanctions against erring LP stalwarts likely to be held liable for “demeaning” women during an event last week where President Aquino’s partymates were videotaped in lewd poses with sexy dancers.

Palace Deputy Spokesman Abigail Valte affirmed over the weekend that Aquino will neither disregard nor overlook the objectionable acts displayed by LP members seen twerking with dancers said to have been invited by Metropolitan Manila Development Authority Chairman Francis N. Tolentino as a “birthday gift” to Rep. Benjamin Agarao. LP standard-bearer Manuel A. Roxas II was also at the party but said he did not witness lewd show. But Valte clarified that Aquino, who sits as concurrent LP chairman, would rather leave it up to the ruling party leaders to act on the matter. “Whether there will be sanctions, while the President is chairman of the LP, I think [we’ll let the Party act on it]. At sinasabi naman po nila nga na magpapatawag po sila ng kanilang sariling imbestigasyon,” Valte said. She affirmed the Palace position that Aquino does not “condone” objectionable actions that exploit women. “I think we were pretty categorical that the President will not, and has never, condoned any action that, in any way, would

demean women, that would debase women, and in this particular case, alam naman po nating walang kinalaman ang Pangulo diyan,” she said. Pointing out that Aquino did not attend the Laguna affair, Valte said the President would not have approved such lewd acts by his partymates. “Wala ho siya doon sa vicinity. Hindi po ’yan ginawa nang may basbas [niya] or approval or anything,” she said, adding: “So, I think, sa amin po malinaw din kung saan ang kinatatayuan ng Pangulo rito.” Valte, however, said she could not speak for the LP, but noted that its leaders have already called for an investigation of the controversial affair. “Nagpatawag ho ’yung mga nakatataas na opisyal ng LP para doon sa imbestigasyon—’yung mga ‘woman stalwarts’ ng LP ay nagpatawag na po ng imbestigasyon,” she added. In a statement, Senate President Franklin M. Drilon said he is “saddened and disappointed by this deplorable incident. I strongly condemn and will not tolerate it. “That sort of lewd and exploitative gim-

mickry is not befitting and is unacceptable of members of the LP.” Drilon added: “As sworn adherents of reformist politics, LP members are expected to display upstanding and morally upright behavior. Those who fail to prove to the nation that they are good and morally responsible public servants have no place in our ranks.” Other top LP leaders including Speaker Feliciano Belmonte Jr. have also issued statements clarifying their stand on the issue. “So, tingnan na lang po natin ’yung kanilang magiging aksyon,” Valte said. Meanwhile, Manila Auxiliary Bishop Broderick Pabillo said Aquino, Roxas and Tolentino should apologize to the women over the “Playgirls” incident in Laguna, stressing that leaders should be promoter of “goodwill” and not “immorality.” “Ano ang ibig sabihin ng walang malisya kung malaswa ang palabas? Nagdadahilan na naman sila, nagbabatuhan na naman ng bintang, [there should be] command responsibilty. Sila ang mga lider at yung ginawa ng mga nasa baba sa kanila ay panagutan nila at i-disiplina nila kasi kung sila ay tatanggi, ibig sabihin hugas kamay sila, may pananagutan sila,” Pabillo said over Radio Veritas. Pabillo, chairman of the Catholic Bishops’ Conference of the Philippines’s Permanent Committee on Public Affairs, added that the lewd dance number during Agarao’s 58th birthday celebration only shows the conduct of traditional politicians. Pabillo added that Tolentino should stop denying that he was the one who brought the girls to the party and accept his fault. “’Yung pinapakita sa party, sa halip na itaas ang kanilang dignidad ay mas lalu pang pinababa sa pamamagitan ng mga ganitong show.” With Claudeth Mocon-Ciriaco

Caap allows small planes to land in Tagbilaran Airport

NLY small airplanes are allowed to land at the Tagbilaran Airport after an Airbus A320 experienced a problem on its right engine upon landing on Saturday in Bohol. The Civil Aviation Authority of the Philippines (Caap) issued a Notice-to-Airmen temporarily restricting bigger aircraft such as Airbus A320 and Boeing 747, to fly to the airport due to the stalled Airbus A320. It was later learned from the Caap that the A320 had an engine leak problem. Tagbilaran Airport is a tiny airport with a runway length of 5,837 feet. Its remote parking cannot accommodate more than two Airbus A320 or B737 planes at the same time. At least eight domestic flights were affected by the incident and are expected to experience delays due to limited runway space, airport authorities said.

DOH closely monitoring dengue cases—Palace

ACTION FIGURE A boy does some stunts at a public beach in Naic, southern Philippine province of Cavite, over the weekend, as Tropical Storm Kabayan hit the northern

Philippines. Dino Mari Testa

Two dead on Kabayan’s wake

WO people in the province of Nueva Ecija and Aurora became the casualties during the onslaught of Tropical Storm Kabayan, the Regional Disaster Risk Reduction Management Council (RDRRMC) in Region 3 said. An RDRRMC bulletin identified the casualties as Raquel Camilo, 57, of Barangay Luzsok, Bongabon, Nueva Ecija, who died due to snakebite, while Samuel Corcoro, 29, of Barangay Debuco, Maria Aurora province, who died due to drowning. The National Disaster Risk Reduction and Management Council (NDRRMC) also reported two persons were injured in Region 1, while 63 persons missing in Region 1 and

3, of which 31 were already rescued. The NDRRMC said Kabayan has affected 4,565 families, or 22,368 people in the provinces of La Union, Aurora, Bulacan, Nueva Ecija and Zambales. Of these, some 1,391 families, or 6,480 people, were staying in seven evacuation centers. A total of 50 barangays are still flooded in provinces of Pangasinan, Bulacan, Nueva Ecija and Pampanga. Damage to property and agriculture was estimated at P1,120,716.59 in the provinces of Pangasinan (P4,101.34) and Aurora (P1,116,615.25). A total of 131 houses were damaged (27 total and 104 partially) in Region 3. PNA

Cebu Pacific announced 10 domestic flights, which have been canceled on Sunday until Monday (October 4 to 5), include 5J 617 (Manila-Tagbilaran), 5J 618 (Tagbilaran-Manila), 5J 619 (ManilaTagbilaran), 5J 620 (Tagbilaran-Manila), 5J 621 (Manila-Tagbilaran) and 5J 622 (Tagbilaran-Manila). Meanwhile, flights canceled for Monday include 5J 617 (Manila-Tagbilaran) 5J 618 (Tagbilaran-Manila), 5J 619 (Manila-Tagbilaran) and 5J 620 (Tagbilaran-Manila). Cebu Pacific said it is currently arranging the reaccommodation of affected passengers on the soonest available flights. Passengers unable to take these flights may either rebook their flights for travel within 30 days from the original departure date; or opt for full refund or travel fund without penalties. Recto Mercene with PNA

ALACAÑANG assu red on Sunday that the Department of Health (DOH) is closely monitoring the incidence of dengue in the country. ”There is no reason to be alarmed because t he DOH is closely monitoring this incidence of deng ue,” Commu- coloma nications Secretary Herminio B. Coloma Jr. said in a Radyo ng Bayan interview. Coloma said the DOH is also focused on providing medical services in the provinces, cities and other areas where there are reports of dengue cases. “The DOH will continue to give assistance in the hospitals in these areas to improve their capabilities in giving immediate medical attention to the dengue patients. Our public hospitals are also ready to address the possible increase of dengue cases,” Coloma said. Despite the reported increase of dengue

cases in at least seven regions, Coloma said the incidence of dengue has declined in the remaining 10 regions. These are in Mindoro, Marinduque, Romblon and Palawan where dengue cases dropped from 1,646 to 1,346, Bicol (from 993 to 868); Western Visayas (from 5,718 to 3,756); Central Visayas (3,481 to 3,326); Eastern Visayas (4,508 to 737); Zamboanga Peninsula (4,743 to 3,981); Northern Mindanao (6,298 to 5,795); Davao region (5,849 to 2,619); South Cotabato, Cotabato, Sultan Kudarat, Sarangani and General Santos (5,302 to 5,109); and Caraga (6,946 to 2,598). Coloma urged the public to keep their surroundings clean by eradicating the breeding grounds of mosquitoes like the stagnant canals and flower vases. “What is important is prevention. We need to keep our surroundings clean. The DOH is already coordinating with the local governments,” Coloma said. Dengue is caused by bites of mosquitoes carrying the dengue virus which, once it enters the body, begins to dominate every single cell and overpower the white blood cells. Dengue is usually characterized by high fever, severe headache, rashes around the body and pain in the muscles. PNA

Gordon to Comelec: Require candidates to join debates

ORMER Sen. Richard Gordon has urged the Commission on Elections (Comelec) to make it mandatory for all national candidates to participate in a series of debates in all regions of the country in the coming elections. In a statement, Gordon said such move would give voters enough information on the qualities and platform of those courting their support. The former senator suggested to use the University of the Philippines school system and other state colleges and universities as venue for the debates. He added that the Comelec can also ask law schools and other academic sectors, the Judiciary, and

sociocivic organizations to help set up and administer the debates so that the candidates can constructively engage with each other and the people. Furthermore, Gordon said the media should be tapped to cover these events, while airtime for nationwide coverage can be paid either by the government, by the candidates and their political parties, or by civicminded individuals and corporations who wish to heighten the political maturity of Filipinos. He said the series of debates would reveal the candidates’ background, capabilities, views, and action plan on national and local issues. “I believe this debate series

would be the true litmus test of the candidates’ capabilities so that voters can choose on on a more informed basis, rather than being unduly influenced by the quality and quantity of the candidates’ political propaganda,” he said. “We need this urgently so that Filipino voters make an informed and unbiased vote, based on the candidates’ qualifications, track record, platform of government, views on national and local issues, and performance under fire. The Comelec should spearhead this because genuine and widespread information on a candidate’s capabilities and beliefs form the backbone of its mission for Filipinos to vote wisely,”

Gordon added. He believes that his proposal is still feasible for the coming elections despite having less than a year to prepare. Gordon also further pushed for the Comelec to require candidates to post on a regular basis during the campaign, the volume and value of the political advertisements they employ during a certain period. “I have nothing against political advertisements, but I believe our voters should be made aware of the huge amounts of money certain candidates spend in this area, and this knowledge would give them another insight on how they vote in the elections.” Joel R. San Juan

Economy

A4 Monday, October 5, 2015 • Editors: Vittorio V. Vitug and Max V. de Leon

BusinessMirror

news@businessmirror.com.ph

Some ODA loans come with strings attached, Neda says

By Cai U. Ordinario

ven after 15 years since the signing of the Paris Declaration on Aid Effectiveness, the Philippines still has tied loans from several of its official development assistance (ODA) partners.

The Paris Declaration on Aid Effectiveness, drafted in 2000, set 12 indicators that seek to improve the use of ODA globally. One of these indicators is to untie aid. National Economic and Development Authority (Neda) Deputy Director General Rolando G. Tung-

palan told the BusinessMirror that the country still has tied aid from China, Japan, Korea and Italy, among others. “Overall, we’re moving close to [meeting the indicators],” Tungpalan said. “Progress is being made but you have to look at it in terms

of weights. Ang weight kasi ng World Bank and ADB [Asian Development Bank] ngayon is malaki sa loans so sila compliant sila but there are individual partners like Japan, Korea, kokonti na lang sila, who may not be fully compliant.” Aid is “tied,” the Organization for Economic Co-operation and Development (OECD) explained, when restrictions are placed on the countries that goods and services may be purchased from narrowly specified group of countries, including the donor country. The OECD said untying aid not only improves value for money and decreases administrative burdens, but also supports the use of local resources and country systems. Tungpalan explained that most

of the tied aid the Philippines still has are usually for very concessional loans. This means that the interest rates for these loans are less than 1 percent and can be as low as 0.25 percent. The Neda official also said that apart from low interest rates, the repayment period for these loans are 30 to 40 years. This, he said, makes these loans “practically free money.” “Generally, parang nag-broaden na ’yung focus. Hindi na lang sa aid effectiveness. Ang pinasok na dito ngayon is more on ownership, country owership, transparency and accountability rather than tied aid. ’Yung iba sinasabi ok lang ’yung tied aid basta call ng country,” Tungpalan said. Tungpalan added that this is one of the changes adopted in the

country’s new financing framework, which allows the country to choose how specific projects and programs will be funded based on comparative advantage. He explained that it no longer matters to the government whether a country partner uses tied aid just as long it will be able to deliver the project or program. Tungpalan said this applies specifically to the ability of development partners to provide specific equipment, machineries, vehicles or a piece of technology. He added that if it is the country’s competitive advantage to provide that technology, the country will choose that development partner, whether it’s tied aid or not. In 2011 the OECD report showed

that 85 percent of aid to the Philippines in 2009 was untied, which is considerably above the target of more than 68 percent. Among the top 5 bilateral partners, Australia and Japan performed better in this respect with 100-percent untied aid reported, followed by Germany with 99 percent, the United States with 76 percent and Spain with 31 percent. “Commercial loans and mixed credit of bilateral donors are in the form of supply or negotiated contracts, which means that they are tied loans,” the OECD said. Data on the extent to which aid is tied are based on voluntary self-reporting by donors that are members of the OECD’s Development Assistance Committee.

CA junks Pateros govt ownership claim over parts of Fort Bonifacio By Joel R. San Juan

HE Court of Appeals (CA) has junked the ownership claim of the Pateros municipal government over certain parcels of land inside Fort Bonifacio, leaving the cities of Makati and Taguig to continue their legal dispute over the controversial property. I n a t w o - p a ge re s olut ion penned by Associate Justice Magdangal de Leon, the CA’s Former Ninth Division denied the motion filed by the Pateros municipality

seeking the reversal of its February 5 decision that upheld the Regional Trial Court in Pasig City’s ruling dismissing its complaint for the judicial declaration and confirmation of certain parcels of land to be within its territorial jurisdiction. The CA held that the petitioner failed to raise new arguments to warrant the reversal of its ruling. “Finding the matters raised by appellant are a mere rehash of its previous arguments, and there being no cogent reason to modify,

much less reverse our assailed January 29, 2015, decision, the instant motion for reconsideration dated February 19, 2015, is denied,” the CA declared. Concurring with the ruling were Associate Justices Jane Aurora Lantion and Victoria Isabel Paredes. In its February 5 decision, the CA held that there was no grave abuse of discretion on the part of the RTC in Pasig when it dismissed the complaint of Pateros for lack of jurisdiction. The trial court concluded that

it cannot exercise jurisdiction over the subject matter of the case, due to the failure of the municipality of Pateros to comply with Sections 118 and 119 of the Local Govenrment Code. Section 118 mandates that boundary disputes involving a component city or municipality on the one hand and a highly urbanized city, on the other, shall be jointly referred for settlement to the respective Sanggunian of the parties concerned. Section 19, on the other hand, provides that any party may elevate the decision of the Sanggunian concerned to the proper RTC having jurisdiction over the area in dispute. The CA pointed out that complaint brought before the RTC was not a case where the Sanggunian concerned jointly rendered a decision resolving the boundary dispute of the parties concerned. It noted that what preceded the case were resolutions that reflect unilateral acts of the Sangguniang Bayan of Pateros. The Pateros municipal government’s complaint covers seven barangays, which include Cembo,

South Cembo, West Rembo, East Rembo, Comembo, Pembo and Pitogo with an aggregate area of 3,044,568 square meters. The said barangays have been declared as part of Makati’s territory by virtue of Proclamations 2475 and 518 issued on January 7, 1986, and January 31, 1991, by former Presidents Ferdinand Marcos and Corazon Aquino, respectively. The ownership of the said barangays is also being claimed by the Taguig City government based on its complaint that was filed on September 21, 1993, against Makati, which is still pending before the CA. In a ruling issued on July 30, 2013, decision, the Court of Appeals declared that the said property belongs to the Makati City government. The Taguig City government has filed a motion for reconsideration of the decision. The Pateros municipal government invoked the 1885 Plano de Provincial de Manila, the 1901 Map of Luzon Island and the 1891 Plano de Hacienda de Maricaban in claiming ownership over the said barangays. It pointed out that it has been

exercising jurisdiction over the disputed properties since 1801, when it was declared an independent town. It recounted that its land area was reduced during the American regime when the latter built and exercised authority over the military reservation known as Fort William McKinley. It added that even after the declaration of Philippine Independence in 1946, when Fort William McKinley was ceded to the Philippine government and renamed as Fort Bonifacio, it continued to exercise jurisdiction over the parcel of land. The Pateros municipal government also cited Proclamation 481 by former President Diosdado Macapagal, which allegedly stated that a certain portion of the land embraced in said proclamation was part of Pateros. Pateros said it lost control of the said properties following the issuance of Proclamations 2475 and 518. It has sought the nullification of the two proclamations in its original complaint filed before the RTC in Pasig.

Malaysia, Indonesia to establish council of palm oil-producing countries

AKARTA—Malaysia and Indonesia have agreed to spearhead the establishment of a Council of Palm Oil Producing Countries (CPOPC), aimed at ensuring price stability and develop the downstream industry of the commodity. Minister of Plantation Industries and Commodities Datuk Amar Douglas Uggah Embas said both countries contributed 85 per cent to the global palm oil market. “The CPOPC will also jointly promote the benefits of the oil palm industry and derivatives,” he added. He was speaking after attending the Malaysia-Indonesia bilateral meeting on the oil-palm industry here on Sunday. Uggah said at the meeting, Indonesia and Malaysia also agreed to harmonize the standards of the Indonesian Sustainable Palm Oil (ISPO) and Malaysian Sustainable Palm Oil (MSPO). “On top of harmonization, we will include the argument for socioeconomic development for smallholders,” he added. The CPOPC will also promote environmentally sustainable practices in the oil-palm industry and improve cooperation in research and development within it to unlock potential across the value chain. Uggah said the governments of both countries will facilitate the initiatives of the private sector in spearheading the Green Economic Zone in Indonesia, while promoting value addition to the palm-oil industry. Meanwhile, Indonesian Coordinating Minister for Maritime Affairs and Resources Rizal Ramli said Indonesia and Malaysia would invite other palm-oil producing countries to join the CPOC. He said the council is expected to be inaugurated at the month-end when Indonesian President Joko Widodo meets with Malaysian Prime Minister Datuk Seri Najib Tun Razak. He said the initiative to establish the council was an idea that had come up a long time ago. PNA

China, US to top agenda of WB, IMF annual meetings in Peru

IMA—Development issues and economic conditions in China and the United States will be the focus of the World Bank Group (WBG) and the International Monetary Fund (IMF) annual meetings in Lima from October 5 to 11, said a Peruvian official on Saturday. Changes in development mode in China and potential interest-rate hike by the US Federal Reserve (the Fed) will be the top issues during the meetings, which will attract about 15,000 participants from 188 countries and regions, said Peruvian Economic Minister Alonso Segura. “We will also deal with the drop in prices of raw materials,” Segura said. The global economic growth would be around 3.4 percent in 2015, weaker than in 2014, IMF Chief Christine Lagarde told the Council of the Americas in Washington on September 30. The WBG and IMF annual events will see over 300 closed-door meetings, which are expected to help their members make the right economic decisions. The meetings are relevant in times of deep economic turbulence for much of the world and as a new economic world order takes shape. The meetings will also discuss the role that young people can play in the global economy and host dialogues to share knowledge and experiences to help them start businesses. Actor Sean Penn, as producer of the documentary The Human Experiment, will be on hand to explain how toxic chemicals are affecting the humanity and the environment. PNA/Xinhua

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Monday, October 5, 2015 A5

House eyes approval of P3.002-T 2016 budget before adjournment

By Jovee Marie N. dela Cruz

he House of Representatives is eyeing to approve the proposed 2016 General Appropriations Act (GAA) this week, leaders of the lower chamber said over the weekend. House Majority Leader and Liberal Party (LP) Rep. Neptali Gonzales II of Mandaluyong said lawmakers may approve the proposed P3.002-trillion 2016 GAA, or House Bill 6132, on second and third reading before Congress goes on break on October 9. “The probability of approving the national budget this Friday on third reading is not impossible. This is not unprecedented and, in fact, had been practiced before. This can be done immediately after the passage on second reading in the presence of a certification from the President,” Gonzales said. “Before we adjourn this Friday,

GONZALES: “Before we adjourn this Friday, we hope this [national budget] is finished not only on second reading, but also on third reading. We are awaiting the President’s certification that this [national budget] is an urgent measure.”

we hope this [national budget] is finished not only on second reading, but also on third reading. We are awaiting the President’s certification

that this [national budget] is an urgent measure,” Gonzales added. On his part, chairman of the House Committee on Appropriations and LP Rep. Isidro Ungab of Davao also said the lower chamber is on track to pass the budget bill on second reading, as well as on third reading this week. The budget is currently under the period of debates. “As of now, we are still on track, we hope to finish the budget as scheduled on October 9. Perhaps, we can proceed with the third reading if a certification that the bill is urgent is issued by the Malacañang,” Ungab said. The budget deliberation is expected to begin at 10 a.m from Monday to Friday. The both chambers of Congress will go on almost threeweek break starting on October 10 in consideration of the scheduled filing of certificates of candidacy (COC) from October 12 to 16 for the May 2016 elections. “We will pass the budget bill on time—delaying the passage of the budget bill will mean delaying our country’s forward move toward the achievement of our national devel-

opment goals,” Ungab said. Ungab added that the proposed 2016 budget is 15.2 percent, or P396 billion, more than the 2015 expenditure program. It corresponds to 19.5 percent of gross domestic product (GDP), increasing from 18.7 percent of GDP in 2015. Of the P3.002-trillion budget, Ungab said new general appropriations which they proposed Congress to authorize amount to P2.139 trillion, consisting of P2.071 trillion in programmed new appropriations and P 67.5 billion in unprogrammed appropriations, which may only be utilized if revenues exceed targets or new loans be secured. “The distribution of the 2016 budget by sector reflects the government’s commitment to inclusive growth as more than P64 in every P100 will be spent on social and economic services in 2016—this shows a dramatic improvement from P45 in every P100 in 2015,” Ungab said. He said the social services sector would get the lion’s share of the budget at 36.8 percent of the national budget, or P1.106 trillion.

Economic Services, the lawmaker said will get the second largest share of the budget with 27.6 percent, or P829.6 billion, while general public services will receive 17.3 percent, or P517.9 billion. “The debt burden, which is composed of interest payments to service outstanding debts, as well as net lending to government corporations, will reach an all-time low of 14 percent of the total budget, or P419.3 billion. To boost the government’s capacity to defend national sovereignty, the defense sector will get a share of 4.3 percent, or P129.1 billion,” he said. By department, the Department of Education will get the biggest allocation at P435.9 billion. The Department of Public Works and Highways will be allocated P394.5 billion; the Department of National Defense, P172.7 billion; the Department of the Interior and Local Government, P154.5 billion; the Department of Health, P128.4 billion; the Department of Social Welfare and Development, P104.2 billion; and the Department of Agriculture, P93.4 billion.

Exporters urged to maximize gains from preferential access opportunities

xporters are encouraged to maximize the gains from the current preferential access opportunities offered by two of the countr’s biggest markets to boost growth even amid the lingering global weak demand. Philippine Exporters Confederation Inc. (Philexport) President Sergio R. Ortiz-Luis Jr. said that under the European Union’s (EU) Generalized System of Preferences Plus (GSP+), 6,274 tariff lines are entitled to zero-duty when exported to the 28 EU member-countries. Citing the Department of Trade and Industry estimates, OrtizLuis noted the preferential tariff system can increase Philippine exports to the EU by 35 percent and create additional 200,000 new jobs in the agriculture and manufacturing sectors. He said the renewal of the United States GSP until 2017, likewise, provides the exporters a competitive advantage. About 5,000 tariff lines, or roughly 47 percent of 10,600 total US tariff lines are covered and include handbags, luggage, flat goods and electronics. Ortiz-Luis called on local exporters to tap possible niche markets like the Hispanic and Asian population in the US, which account for a third of the US population by 2020. Apart from availing of GSP preferential tariffs, Ortiz-Luis said industry players are stepping up export promotions to support the continued growth in exports. “An aggressive export promotion offensive has been directed toward Asia, while still seriously working on bilateral pacts with Europe and the United States for more focused and targeted approach,” he said. Likewise, Ortiz-Luis said export leaders are continuously engaged in an aggressive advocacy for policy and regulatory reforms to make doing business in the Philippines less costly and less cumbersome. “The task at hand is to sustain, if not accelerate, this momentum in our economic progress that has helped gain market access for our exporters,” he said. The International Monetary Fund sees global growth this year at the weakest rate since the financial crisis in 2009, as mounting threats from China to the euro zone add to a long list of strains on the world economy.

FAKE FLOWERS An elderly man sells plastic flowers for P100 to P150 a set in Divisoria, Manila. Synthetic flowers are commonly used as house decoration. NONIE REYES

BOC issues accreditation rules for exporters’ self-certification

xporters in good standing w ith the Bureau of Customs (BOC) can seek authorization from the bureau to self-declare their goods without presenting certificate of origin, as the Philippines rolls out the implementation of the second pilot project for the Asean selfcertification system at all ports. Customs Commissioner Alberto D. Lina recently signed Customs Memorandum Order 18-2015, outlining the revised implementation guidelines on the self-certification project for exporters, which aims to fast-track the free flow of goods within the Asean. An exporter seeking authorization must apply in writing or electronically, and must offer to provide

all guarantees necessary to verify the originating status of the goods for which an invoice declaration was made out. Those intending to be accredited as “certified exporter” are required to submit documents that include, among others, latest income-tax returns; Unique Reference Number as Philippine Economic Zone Authority (Peza) locators and Client Profile Registrations System for non-Peza locators; business permit; and list of products applied for authorization to make invoice declaration. The head of Self-Certification Implementing and Monitoring Secretariat (SCIMS), or the district collector shall forward the application to the Export Coor-

dination Division, or Export Division for outports. It shall evaluate the application of the exporter who has been transacting with the BOC for more than one year and exporting products with Asean member-states for at least one year. The exporter must have responsible officers or persons authorized to sign the invoice declaration, sufficient knowledge and competence in rules of origin (ROO) application. ROO refers to the rules or criteria for determining the national source of a product, especially for the purpose of determining eligibility for preferential tariff treatment pursuant to the Asean Trade in Goods Agreement (Atiga) that achieves

free flow of goods in Asean. If SCIMS finds the application to be meritorious, it shall grant the certified ex porter status through the issuance of a written authorization. The BOC shall monitor the proper use of the authorization, including verification of the correctness of the invoice declarations made. In cases where the certified exporter may decide not to submit an invoice declaration, he may still claim tariff preference under the Atiga by applying for the issuance of a Certificate of Origin Form D. Accreditation may be suspended or revoked if the exporter no longer offers the guarantees or fulfills the conditions.

Bicameral committee to OK Timta this week–Quimbo

QUIMBO: “There’s a big possibility [that we can approve the measure at the bicameral committee this week]. Also, hopefully before this week ends [we can adopt the bicameral

report in the plenary].”

he congressional bicameral committee is set to pass the proposed Tax Incentives Management and Transparency Act (Timta) this week, a leader of the House of Representatives said on Sunday. Chairman of the House Committee on Ways and Means and Liberal Party Rep. Romero S. Quimbo of Marikina said members of the bicameral committee are now finalizing the report on the Timta to be presented in the both chambers for final approval also this week. Quimbo added that the proposed Timta will be transmitted to President Aquino for signature before the year ends. “There’s a big possibility [that we can approve the measure at the bicameral committee this week]. Also, hopefully before this week ends [we can adopt the bicameral report in the plenary],” he said. Quimbo added that the proposed Timta, which was included to one of the priority bills of the 16th Congress, seeks to promote transparency and accountability in the grant and administration of tax incentives to business entities, and private individuals and corporations. The consolidated bill of the House of Representatives on Timta, House Bill 5831, principally authored by Liberal Party Rep. Maria Leonor Gerona-Robredo of Camarines Sur, was merged with the Senate version authored by Senate President Franklin M. Drilon, Sen. Juan Edgardo Angara and Sen. Ralph G. Recto during the bicameral conference. On his part, Angara, chairman of the Senate Committee on Ways and Means, has said the two chambers have removed a provision in the proposed Timta that withdraws the perks granted to investors who would fail to comply with the reportorial requirement at first instance. Under the bill, all heads of the investment-promotion agencies must submit to the National Economic and Development Authority (Neda) investment-related data, which will include the list of registered business entities, investment projects, investment cost, actual employment and export earnings. For tax-incentives data, the Department of Finance will furnish the Neda a copy of the reports submitted by the Bureau of Internal Revenue and the Bureau of Customs. Also, the bill provides that the data and information will be reflected by the Department of Budget and Management in the annual Budget of Expenditures and Sources of Financing, particularly in a section to be called the Tax Incentives Information. Moreover, Angara said the proposed transparency measure sought to provide a solution for the lack of empirical data on fiscal incentives, thus, enabling the government to “evaluate and maximize revenue spent toward boosting the country’s economic growth.” Jovee Marie N. dela Cruz

Tourism&E

Busines

A6 Monday, October 5, 2015 • Editor: Carla Mortel-Baricaua

A day tour at the Angkor temples

The glorious Angkor Wat

Story & photos by Henrylito D. Tacio

have been raring to go to Cambodia. The reason is very obvious: to see the Angkor temples!

So much so that when I was invited to attend an international conference in Siem Reap, I immediately accepted the offer. After all, the Angkor Wat and other temples are very near the city. Since we—Imelda Abano, Rhaydz Barcia and myself—arrived a day earlier of the conference, we decided to do a day tour to the Angkor temples. We hired a tour guide and vehicle (for $72). Entrance fee was $20 per person. The first we visited was the Angkor Thom, which means “the great city” in Khmer. The 12th-century royal Buddhist city is especially famed for its grand Bayon Temple, whose most distinctive feature is the multitude of serene and massive stone faces on the many towers which jut out from the upper terrace and cluster around its central peak. The Japanese Government Team for the Safeguarding of Angkor has described the temple as “the most striking expression of the baroque style” of Khmer architecture, in comparison to the classical style of Angkor Wat. After taking some photos, we decided that it was time to visit another temple. But we thought it was just near. We were wrong. We hiked for almost a kilometer before we located our vehicle. We were tired and it was good that our driver brought some water. A few minutes, we were on our second temple: the Ta Prohm, which as seductive as Lara Croft. Yes, this was the place where Tomb Raider was filmed. The Lonely Planet described it in these words: “It is a series of dark galleries and pillars held hostage under the iron clasp of gigantic roots. The walls are decorated with carvings of sensuous celestial nymphs with smaller roots crawling across them

The author at Angkor Wat

BAYON

Ta Prohm

like a rash.” The Sanskrit inscriptions on the walls said the temple held thousands of pearls, precious stones and golden dishes weighting more than 500 kilograms. But unfortunately, this temple has been neglected and largely left to the clutches of the living jungle. You see great trees tower the temple with leaves filtering the sunlight. It was almost lunch time when we finished marveling the temples of Ta Prohm. “It’s time for us to walk a long distance again,” our guide told us. “You mean another hike?” I inquired. He nodded. “Can we have lunch first?” I answered. “I think we are running out of energy.” Imelda agreed. “We can rest at the restaurant while waiting for our food,” she suggested. And that was what we did—for almost an hour. “I think we need to go now,” our

Long walk is the rule when touring the temples. Tourists flocking the temples.

guide said. “Angkor Wat is not crowded right now. In fact, there may not be people around so we can enjoy the temple in its glory.” Although we were tired, we agreed. Yes, it was very hot to walk but not a few souls were at the temple. It was ours! “[Angkor Wat] is of such extraordinary construction that it is not possible to describe it with a pen, particularly since it is like no other building in the world. It has towers and decoration and all the refinements which the human genius can conceive of.” That was what Antonio da Madalena, a Portuguese and one of the first Western

visitors to the temple. Henri Mouhot, the French naturalist and explorer who popularized the site in the West through the publication of travel notes, wrote: “One of these temples—a rival to that of [King] Solomon, and erected by some ancient Michelangelo—might take an honorable place beside our most beautiful buildings. It is grander than anything left to us by Greece or Rome, and presents a sad contrast to the state of barbarism in which the nation is now plunged.” Our guide said that Angkor Wat was first a Hindu and then subse-

quently a Buddhist. Today it is the largest religious monument in the world. So famous is this landmark that it has become a symbol of Cambodia and even appearing on its national flag. It is no wonder that foreigners flock to see Angkor Wat (which means “Temple City” or “City of Temples” in Khmer). Most of our visitors are Koreans, our guide said. Chinese is next, then Japanese, and finally Europeans -- in that order. The tourism office of Cambodia describes Angkor Wat in these words: “…In its beauty and state of preservation, [Angkor Wat] is unrivaled. Its

mightiness and magnificence bespeak a pomp and a luxury surpassing that of a pharaoh or a shah jahan, an impressiveness greater than that of the Pyramids, an artistic distinctiveness as fine as that of the Taj Mahal.” At 2:30 in the afternoon, we ended our tour. “Don’t you want to see the sunset?” our guide asked. I think we were too tired already that despite the fact that we were interested to see sunset (which a friend told me was magnificent), we decided to forego it. “We just want to take a rest in our hotel,” we chorused. And that was what we did when we hit our beds!

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tourism@businessmirror.com.ph • Monday, October 5, 2015 A7

MILLENNIALS AS TRAVELERS

‘Oktubrefiesta’ at Las Casas Filipinas de Acuzar C

By Korinna Pia Saavedra

onsumers are an interesting lot and have many a time defined the success of industries influenced by their moods and economic interests. Needless to say, millennials are a new demographic driving consumerism and many industries are paying attention to what makes them do what they do and choose what they will. It is also interesting to note their key traits: expect technology to work; very social; love their phones; crave adventure; like sharing ideas; and passionate about values.

Millennials vs Gen X

beef liver steak

PORK Schnitzel

as Casas Filipinas de Acuzar celebrates the largest beer festival and traveling funfair in the world, Octoberfest, with a special German-inspired fare exclusive for the month of October. The country’s first and only Heritage Resort by the sea will host “Oktubrefiesta at Café del Rio” every weekend of this month, featuring beer-infused dishes in celebration of the annual October Festival that originated in Munich, Bavaria, Germany, and is now celebrated in various parts of the world. The menu includes Beef Liver Steak, a serving of grilled beef liver served

CHIcken barbecue

HOUSE blended tea with mashed potatoes and topped with crunchy onions and wine sauce. Guests will surely savor the crisp Pork Schnitzel or pan-fried escalope of pork, and the beer-marinated Chicken Barbecue to be served fresh off the grill. Both entrées come with a warm potato salad topped with bacon bits. Hungarian Sausage and Veal Sausage are also must-try menu options, grilled and served with homemade French fries, and mustard and garlic mayo dip. Match these exclusive offers with the café’s house-blend iced tea, fruit shakes, or ice-cold beer for a truly refreshing meal.

WATERMELON shake Café del Rio is one of the three restaurants at Las Casas Filipinas de Acuzar. Aptly named because it is especially situated by the river, Café del Rio is a perfect location for family and friends’ bonding while enjoying the soothing water and the picturesque heritage houses. Las Casas Filipinas de Acuzar is in the quaint Bagac town in Bataan, an easy three-hour drive from Manila via North Luzon Expressway and Subic–Clark–Tarlac Expressway, and is open for day tours and overnight accommodations. It is a project of New San Jose Builders Inc., and managed by Asian Grand Legacy Hotels Corp.

Widus appoints new Casino VP

idus International Leisure Inc. named David Lawrence the new vice president for Widus Casino in Clark, Pampanga. Lawrence, a British national, is a veteran in the international gaming industry. He is equipped with over 30 valuable years of gaming operations experience from territories as diverse as the United Kingdom, South Africa, the West Indies and Macau, as well as cruise ships operating across Asia. Prior joining Widus, Lawrence was the assistant director of gaming at Resorts World Sentosa, Singapore, where he was involved in numerous projects and committees covering all aspects of operations, including staff development. As Widus Casino VP, Lawrence is in charge of managing the daily operations of the 4,500 square-meter

Las Vegas-style gaming space, which features 250 slot machines and 52 gaming tables. “I am excited to be part of the

Widus team, and I look forward to being involved in developing the entertainment offerings available to our guests, continuing our focus on making Widus the premier venue of choice for relaxation and leisure in Clark,” Lawrence said. With Widus Casino being a worldclass gaming facility, Lawrence also aims to strengthen the company’s campaign on responsible gaming with its new partnership with Life Change Recovery Center, a professional counseling and treatment facility for individuals with psychiatric or psychological problems. With his expertise and strong management skills, Lawrence will also oversee proposed plans for casino expansion to ensure Widus maintains its position as the topnotch leisure facility in Northern Luzon.

Millennials are driven by discounts, supersocial and firmly believe that sharing is caring. This is according to Hipmunk, a US-based online travel agent who recently surveyed a total 1,400 Gen Y-ers and Gen Xers (aged 35 to 54) to find out more about the travel habits of the Gen Y demographic. The survey’s results are published on Stylus, a consumer lifestyle web site. According to Hipmunk, cash-strapped millennials are willing to sacrifice personal comfort for cheaper travel and that they like to stay connected— even while onboard a flight—compared to Gen X-ers. At the same time, the survey pointed out how millennials are either “likely” or “very likely” to engage in peer-to-peer activities in support of a sharing economy while traveling, compared to some 42 percent of Gen X. This means that Gen Y-ers are more likely to borrow or share products than purchase them outright. This said, the survey sample also pointed out that 93.5 percent of millennials have passports, compared to the rest of their peers, and 56.9 percent of them expect to travel, or have already traveled, about three times this year (compared to Gen X-ers, at 52.7 percent).

Traveling abroad to volunteer

Demographically, millennials are

also more likely to engage in travel to volunteer more than any other age group, according to a new survey by Marriott Rewards Credit Card. Its report stated that 32 percent of Millennials are interested in taking a charitable trip, while only two in 10 Generation X travelers (18 percent) and baby boomers (17 percent) are interested to do so. Conversely, female travelers (28 percent), regardless of age, tend be more interested in taking a charitable vacation compared to their male counterparts (17 percent). The nationwide phone survey commissioned reached 1,000 travelers (18 to 67 years old) who stay in a hotel at least five nights per year for business, pleasure or both. Incidentally, the report surfaced other interesting findings. Millennial travelers ages 18 to 34 (44 percent) are more likely than travelers ages 35 to 49 (33 percent) and 50 to 67 (27 percent) to view destinations as hot spots if they have a booming industry and culture. Older travelers ages 50 to 67 (34 percent) are most likely to define a destination as a hot spot if it was highlighted in a notable travel or lifestyle publication. One in five millennials (20 percent) would say a destination is a hot spot if it has recently been featured in a movie, compared to only 11 percent of Gen X-ers and 7 percent of boomers. Around the same amount of Millennials (21 percent) and travelers ages 35 to 49 (20 percent) say a destination is a hot spot if pop-culture events, such as award shows or concerts, have taken place or will take place there, compared to one in 10 travelers ages 50 to 67 (10 percent). At the same time, Millennial travelers are far more interested in thrilling vacations (78 percent) than lazy trips (32 percent), with those millennials seeking a thrilling vacation being most interested in filling their adrenaline needs through water sports (67 percent), compared to travelers ages 35 to 49 (55 percent), or aged 50 to 67 (46 percent). They may also wish to interact with wild animals through activities like safaris or swimming with sharks (63 percent).

Asian Millennial travelers: Blazing a travel wave

Travel Weekly Asia recently reported that about 60 percent of the world’s millennials, that awe-inspiring demographic, are in Asia. This, even while they have culturally defined differences based on their countries of origin and individual motivations for travel. For instance, a study commissioned by the Singapore Tourism Board found that as many as 64 percent of Asian millennial travelers opt for free and easy, or wholly independent, travel arrangements on their last leisure trip, with only 22 percent choosing package tours. Also, a majority of Asian Millennial travelers are from China, Indonesia, India and Singapore. Chinese millennial travelers hit the road as a means to indulge and escape from city life, while Indonesian Millennial travelers are budget-conscious, are encouraged by cheap promotions, and tend to travel on impulse and stick to the region. Indian Millennial travelers seek iconic cities and popular destinations, viewing travel as a status symbol and claim that their biggest expenditure during trips is on food. On the other hand, Singapore millennial travelers value experiential travel, seeking unique and rare encounters and investing time in the planning of elaborate itineraries drawn from variable sources.

Investing in the individual, not the demographic

Perhaps, one of the best insights derived thus far in this search for demographic insight comes from Forbes.com’s Micah Solomon, who said that this customer is an individual first and a Millennial second. It would be wise to consider that learning about the demographic requires that businesses and industries also consider how this consumer is an individual with particular and unique individual tastes and choices first, and this being before considering them as being anything else related to their demographic.

Power Mac Center partners with PAL Mabuhay

ower Mac Center, the premier Apple partner in the Philippines, takes its customers to a new adventure, as it partners with the country’s most prestigious travel rewards program for the PAL Mabuhay Miles—Power Mac Center’s “Adventure Awaits.” “This partnership is important for PAL because it will allow us to tap into Power Mac Center’s market. Since we have the same brand profile, this will allow us to reach their customers and engage them,” PAL Assistant VP—Loyalty Program Marietta Casanova said.

In photo are Philippine Airlines (PAL) Vice President-Ancillary Business Kevin HartiganGo (second from left), Power Mac Center CEO Lawrence Sison (second from right), PAL Assistant Vice President Loyalty Program Marietta Casanova and Power Mac Center Marketing Director Joey Alvarez

From October 1 to November 15, Power Mac Center customers who are PAL Mabuhay Miles members with a minimum purchase of P80,000 in a single-transaction receipt will get 10,000 Mabuhay Miles. And if a single-purchase transaction fetches more than P120,000, customers get double the miles, or 20,000 Mabuhay Miles. “Our latest promotion aims to reward customers of Power Mac Center with the chance to enjoy their Apple devices while traveling with the country’s premier flag carrier, Philippine Airlines,” Power Mac Center Marketing Director Joey Alvarez said.

Power Mac Center store staff will have the customer fill out an online form with his/ her Mabuhay Miles ID details using the device inside participating Power Mac Center branches. Customers who are not Mabuhay Miles members yet can sign up for free and earn points when they purchase from Power Mac Center. Customers will be notified by Power Mac Center via e-mail and will be given a unique reference code after his/her successful registration. The credited miles can be checked online by logging in on PAL’s web site from December 15 onward.

A8 Monday, October 5, 2015 • Editor: Efleda P. Campos

OurTime BusinessMirror

Eternalites reach out to the elderly at Anawim

RESIDENTS of a home for the abandoned elderly operated by the Anawim Lay Missions Foundation Inc. in Rodriguez, Rizal, join volunteers of Eternal Gardens and Eternal Plans Inc. of the ALC Group of Companies for a photo opportunity during the two companies’ outreach mission to the residence on September 27.

By Ivee Johnson

EADING preneed providers and sister companies in the ALC Group, Eternal Gardens and Eternal Plans Inc., conducted an outreach program on September 27 at the Anawim Lay Missions Foundation Inc., a small facility for poor and abandoned elderly people in Barangay San Isidro, Sitio Tañag, Rodriguez, Rizal.

Anawim is a Hebrew word meaning “God’s poor.” The home was founded by Catholic lay preacher Bro. Bo Sanchez in 1996. Today it has 56 residents—23 males and 33 females—under its care. With the theme “Contributing to the sustainability of our communities, the ALC way,” the outreach program sought to take part in Anawim’s mission “to build Catholic lay communities that provide Christian homes, evangelization and service to the poor and abandoned in society,” and help them attain their

vision “to have 10 Anawim branches in different parts of the country, serving the poorest of the poor: The abandoned elderly, orphans, street children, handicapped, drug dependents, unwed mothers, prostitutes, by the year 2020.” The two companies’ 25 volunteer employees and officers left early that Sunday morning to bring basic needs, like toiletries, dusters for the lolas and pajamas for the lolos, towels, grocery items and food, and provide afternoon entertainment for the elderly residents of Anawim.

Upon arrival at the venue at around 1 p.m., the volunteers, headed by Eternal Plans President and COO Elmer M. Lorica and Eternal Gardens Vice President for Human Resources and Management Division Victoria C. Nava, were welcomed by the staff of Anawim, headed by Arcie Binohhi, a social worker. Some of their intended beneficiaries were also waiting for them when they arrived and they all seemed very excited to spend the afternoon with their visitors from Manila. As the volunteers unloaded their donations and got ready for the program, the lolos and lolas started to gather at the multipurpose hall. Nava rendered a special song for the elderly while they were waiting for the program to start. The program officially started at around 2 p.m. with an opening prayer led by Rolando Bongalon, senior assistant vice president for Marketing of Eternal Plans. This was followed by a brief opening message from Nava, who expressed the group’s joy for the opportunity to spend the afternoon with the residents of Anawim. “We are very happy to be here with you today. We brought some gifts for all of you and we hope that you will enjoy the short program that we

have prepared,” she said. The residents of the home did seem to enjoy the program, hosted by Guyrich Espeña and Jhe Barrantes of Eternal Gardens and Eternal Plans, respectively. They had the most fun during the games, which included the “bring me” game, a hula-hoop game and stop dance. One of the employees of Eternal Gardens, Arvin Guevarra, also rendered a special song dedicated to the elderly of Anawim. One lola even joined him in a duet to the delight of the crowd. After the fun program, the elderly residents shared a meal of pancit, spaghetti and sandwiches brought by the volunteers. They were also given souvenirs by the volunteers after their merienda and gamely joined in the photo ops before going back to their respective quarters. Organized by the Events Committee of Eternal Gardens, headed by MIS Manager Geoffrey Coberos, the outreach program at Anawim is only one of the many charity events sponsored by member companies of the ALC Group. “This is our way of spreading the generosity of our founder, Ambassador Antonio L. Cabangon Chua, to our less fortunate brothers and sisters,” Coberos said.

Baguio City celebrates Elderly Month B M

AGUIO CITY—Baguio City is honoring more than 20,000 senior citizens as it celebrates the Baguio Elderly Month beginning October 1. The monthlong celebration for the retirees and the elderly will be spearheaded by the City Social Welfare and Development Office (CSWDO) and the Office of Senior Citizens Affairs. The Baguio Elderly Month is an annual activity of the city which takes off from the nationwide celebration of the Filipino Elderly Week which also commenced on October 1. The celebration will evolve around the theme, “Igalang ang Karapatan ng Nakatatanda” (Respect the Rights of the Elderlies), to promote the rights and well-being of senior citizens. The monthlong activities kicked off with a parade and opening program at the President Fidel V. Ramos (PFVR) Gym which will be highlighted with the awarding of Outstanding Senior Citizens Achievers Awards. A Thanksgiving Mass was celebrated at the multipurpose hall of the Baguio City Hall on October 2. One of the highlights of the cel-

news@businessmirror.com.ph

UN highlights urban sustainability, inclusiveness for older persons

NITED NATIONS—The United Nations on Thursday called on member-states to improve older persons’ accessibility to urban infrastructure, facilities and services as two phenomena—rapid urbanization and aging populations—are combining to dramatically change the face the world’s cities in the coming decades. “Older persons are an enormous asset to society and make a significant contribution to global development,” UN Secretary-General Ban Ki-moon said in his message marking the 25th anniversary of the International Day of Older Persons. The International Day of Older Persons, which falls on October 1, is a special day for older persons or senior citizens all over the world. “In implementing the newly adopted 2030 Agenda for Sustainable Development, we must account for the demographic changes of the next 15 years,” Ban said. “These will have a direct bearing on the achievement of the Sustainable Development Goals.” The secretary-general said that making cities inclusive of older persons means generating opportunities for their economic and social participation in accessible and safe environments. “It also means providing affordable housing, as well as the health and social services needed to support ageing in place,” he said. According to the message, the third UN Conference on Housing and Sustainable Urban Development, which will be held in Quito, Ecuador, in October 2016, will offer an opportunity to advance member-states’ committed efforts in this regard. PNA/Xinhua

Zambo DENR to honor senior citizen personnel

AGADIAN CITY, Zamboanga del Sur—The Department of Environment and Natural Resources in Zamboanga (DENR-9) has lined up several activities to honor its senior citizen personnel as the agency joins the observance of the Elderly Filipino Week (EFW). The EFW is being observed from October 1 to 7, pursuant to Proclamation 470 issued by former President Fidel V. Ramos on September 26, 1994. The weeklong event aims to increase public awareness on the different issues concerning the older persons’ sector. Rosevirico Tan, DENR regional information officer, said last Tuesday that the activities will include the following: display of EFW streamer to raise public awareness; fitting program during the regular convocation; information and education campaign on climate change: mitigation and adaptation strategies; and tobacco control and prevention; better social services; distribution of event t-shirts; photo documentation; and other activities. Tan said the elderly employees will also be oriented on healthy diet and lifestyle since based on research older people are more prone to illness that young ones. He said the EFW observance is also aimed to underscore the importance to the role of the senior citizens in nation-building. PNA

Fearing elderly drivers, driverless cab experiment starts in Japan

The older citizens of the city of Baguio celebrate their day with a Parade of the Elderly led by Nars Padilla (center, front), the mayor-designate during the city’s Senior Officials for a Day. MAU VICTA

ebration will be the Senior Citizen Officials for a Day on October 5, where selected members of the se-

nior citizen community will sit and work as Baguio City Hall officials. Generosa Carbonell will sit as the

city’s representative; veteran newsman Narciso Padilla as the mayor; and Gerry Mecos as vice mayor. PNA

OSCOW— Japa n h a s made rapid advancements in incorporating robotics into everyday life. Now, in an effort to keep the elderly off the road, a new project aims to bring driverless taxi cabs to the streets. Senior citizens get a pretty bad rap as far as driving abilities go. Waning eyesight, poor focus and weakening reflexes make for a deadly combination on the highway, and it’s a concern that Tokyo isn’t taking lightly. The most rapidly aging nation on Earth, Japan has over 60,000 citizens over the age of 100, and all of those people have to get around somehow. Currently, many use cabs to get from home to their local grocery store. But that can be pricey. But one company may have found a way to make those trips more affordable. Called Robot Taxi Inc., the company hopes to reduce fares by automating the middleman. With backing from the Japanese government, the company will begin testing its driverless cars sometime next year. Starting small, the first run will occur in Kanagawa prefecture, south of Tokyo, and will be offered to 50 people for short

trips of roughly 2 miles. Once the test run is complete, the company hopes to become fully operational by 2020. “There are a lot of people who say it’s impossible, but I think this will happen faster than people expect,” Shinjiro Koizumi, a vice minister, said during an event held on Thursday afternoon, according to the Wall Street Journal. But will people trust their lives to a computerized box on wheels? According to roboticist Richard Alan Peters, the answer is yes, partially because Japanese culture has developed different attitudes toward robots than other parts of the world. “As the entertainment industry in Japan was creating robots as ultra cool toys for boys and girls, [America] was creating robots that would take over the world and kill us all,” he told Gizmodo. Movies like Terminator and The Matrix have given Western cultures a fairly pessimistic view not entirely shared by people in Japan. The fact that Japanese companies have already successfully integrated robots into the hotel industry and department stores bodes well for Robot Taxi Inc. PNA/Sputnik

국제선 여객운송약관 GENERAL CONDITIONS OF CARRIAGE FOR INTERNATIONAL PASSENGER AND BAGGAGE

GENERAL CONDITIONS OF CARRIAGE FOR INTERNATIONAL PASSENGER AND BAGGAGE ARTICLE 1 DEFINITIONS As used in these conditions of carriage, terms shall be defined as follows; 1. “BAGGAGE”, which is equivalent to luggage, means such articles, effects and other personal property of a passenger as are necessary or appropriate for wear, use, comfort of convenience in connection with his trip. Unless otherwise specified, it includes both checked and unchecked baggage of the passenger. However, in the case of a more than reasonable quantity of the same article, it will be regarded that the articles are for commercial purpose and will not be considered baggage if there is no valid reason in the opinion of JJA 2. “BAGGAGE CHECK” means those portions of the ticket which provide for the carriage of passenger’s checked baggage and which are issued by carrier as a receipt for the passenger’s checked baggage. 3. “BAGGAGE TAG” means a document issued by carrier solely for identification of the checked baggage, the baggage (strap) tag portion of which is attached by carrier to a particular article of checked baggage and baggage (claim) tag portion of which is given to passenger. 4. “CARRIAGE” which is equivalent to transportation, means carriage of passenger and/or baggage by air, gratuitously or for reward. 5. “CARRIER” means air carrier and includes the air carrier issuing the ticket and all air carriers that carry the passenger and/or his baggage thereunder, or perform or undertake to perform and other services related to such air carriage. 6. “CHECKED BAGGAGE”, which is equivalent to “registered luggage”, means baggage of which carrier takes sole custody and for which carrier has issued a baggage check and baggage (claim) tag(s). 7. “CHILD” means for the purpose of discounts for children, a person of 2 years of age or over but under 12 years of age. 8. “CIRCLE TRIP” means travel from a point and return there to by a continuous, circuitous air route; provided that where no reasonable direct scheduled air route is available between two points, a break in the circle may be traveled by any other means of transportation without prejudice to the circle trip. 9. “CONJUNCTION TICKET” means two or more tickets concurrently issued to a passenger and which constitute a single contract of carriage. 10. “CONSEQUENTIAL DAMAGES” means damages which are reasonable out-of-pocket expenses and other provable damage incurred by passenger as the consequence of the loss, damage, or delay in the delivery of such personal property. 11. “CONVENTION” means the Convention for the Unification of Certain Rules Relating to International Carriage by Air, signed at Warsaw, October 12, 1929, (hereinafter called “the Warsaw Convention”) or that Convention as amended at the Hague, September 28, 1955 (hereinafter called “the Warsaw Convention as amended at the Hague, 1955”), whichever may be applicable. 12. “DAYS” means calendar days, including Sundays and legal holidays; provided that for the purpose of notification, the day upon which the notice is dispatched shall not be counted; and that for purpose of determining duration of validity, the balance the day upon which the ticket is issued, or flight commenced shall not be counted. 13. “DAMAGE” includes death, injury, delay, loss or other damage of whatsoever nature arising out of or in connection with carriage or other services performed by carrier incidental thereto. 14. “DESTINATION” means the ultimate stopping place according to the contract of carriage. In the case of round trip or circle trip, the destination is the same place as the point of origin. 15. “FLIGHT COUPON” means the portion of the Passenger Ticket that indicates particular places between which the coupon is good for carriage. 16. “INFANT” means, for the purpose of discounts for infants, a person under 2 years of age. 17. “INTERNATIONAL CARRIAGE OTHER THAN THAT DEFINED BY THE CONVENTION” means any carriage which is not international carriage as defined by the Warsaw Convention or the Warsaw Convention as amended at The Hague, 1955, but in which, according to the agreement made by the parties, the place of departure and the place of landing are situated in more than one country. As used therein, the term “country” which is equivalent to “state” includes all territory subject to its sovereignty, suzerainty, mandate, trusteeship or authority. 18. “JJA” means JEJU AIR Incorporated. 19. “MISCELLANEOUS CHARGES ORDER” means a document issued by a carrier or its agent, requesting issue of an appropriate Passenger Ticket and Baggage Check or provision of services to the person named in such document. 20. “NORMAL FARE” means the full fare established for a normal, regular or usual service, the application of which is not dependent upon any specially limited period or ticket validity or other special circumstances. 21. “OPEN-JAW TRIP” means travel which is essentially of a round trip nature but the outward point of departure and inward point or arrival and/or outward point of arrival and inward point of departure of which are not the same. 22. “PASSENGER” means any person, except members of the crew, carried or to be carried in an aircraft with the consent of Carrier. 23. “PASSENGER COUPON” means that portion of the Passenger Ticket constituting the passenger’s written evidence of the contract of carriage. 24. “PASSENGER TICKET” means those portions of the ticket issued by carrier which provide for the carriage of the passenger. 25. “ROUND TRIP”, which is equivalent to a return journey, means travel from one point to another and return by the same air route used outbound whether or not the fares outbound and inbound be the same, or travel from one point to another and return by an air route different from that used outbound, for which the same normal through, one-way fare is established. 26. “SPECIAL FARE” means a fare other than a normal fare. 27. “TARIFFS” means JJA’s fares, rates and charges for international carriage of passengers and baggage and related rules and regulations, which are made part of these Conditions of Carriage. 28. “TICKET” means the “Passenger Ticket and Baggage Check” or Electronic Ticket including all flight, passenger and other coupons therein, issued by carrier or on our behalf, which provides for the carriage of the passenger and his baggage. 29. “ELECTRONIC TICKET” means the Itinerary/Receipt issued by JJA or on our behalf, the Electronic Coupons. 30. “ELECTRONIC COUPON” means an electronic flight coupon or other value document held in JJA’s data base. 31. “ITINERARY/RECEIPT” means a document or documents JJA issue to Passengers traveling on Electronic Tickets that contains the Passenger’s name, flight information and notices. 32. “TO VALIDATION” means to stamp or write on the passenger ticket an indication that the passenger ticket has been officially issued by carrier. 33. “UNCHECKED BAGGAGE”, which is equivalent to hand luggage, is baggage other than checked baggage. 34. “FRENCH GOLD FRANCS” means French francs consisting of 65 1/2 milligrams of gold at the standard of fineness of nine hundred thousandths. 35. UNITED STATES OF AMERICA or THE UNITED STATES or THE USA means, unless otherwise specified, the area comprising the 48 contiguous federated states, the Federal District of Columbia, Alaska, Hawaii, Guam, Puerto Rico, St. Croix and St. Thomas of the Virgin Islands, American Samoa, The Canal Zone, Canton, Midway and Wake islands. ARTICLE 2 APPLICATION OF CONDITIONS 1 General Nothing in these Conditions of Carriage and other applicable tariffs modifies or waives any provision of the Warsaw Convention and Warsaw Convention as amended at The Hague, 1955. 2 Applicability To the extent not in conflict with the Convention and except as excluded by JJA’s conditions in relation to carriage wholly on its own domestic services, these Conditions of Carriage shall apply to all carriage of passenger and baggage including all services incidental thereto, performed by JJA at fares, rates and charges published in connection with these Conditions of Carriage. 3 Gratuitous Carriage With respect to gratuitous carriage, JJA reserves the right to exclude the application of all or any part of these Conditions of Carriage. 4 Charter Agreement Carriage of passengers and baggage performed pursuant to a charter agreement with JJA shall be preferably subject to such charter agreement, and any others not specifically provided in the charter agreement shall be subject to these Conditions of Carriage. The passenger, by accepting carriage pursuant to a charter agreement and a carriage is performed thereunder, shall be regarded as having agreed to said agreement and these Conditions of Carriage, whether or not he has concluded the charter agreement with JJA. 5 Effectiveness All carriage of passengers and/or baggage shall be subject to these Conditions of Carriage and other applicable tariffs in effect on the date of commencement of carriage covered by the first flight coupon of the ticket. 6 Change Without Notice Except as may be required by applicable laws, government regulations, orders and requirements, these Conditions of Carriage and other applicable tariffs are subject to change without notice; provided that no such change shall apply to a contract of carriage after the carriage has been commenced. ARTICLE 3 TICKET 1 General A ticket will not be issued and in any case JJA will not transport the passenger until the passenger has paid the applicable fare or has complied with credit arrangement established by JJA. 2 Validity for Carriage 1. When validated, the ticket is good for carriage from the airport at the place of departure to the airport at the place of destination via the route shown therein and for the applicable class of service and is valid for the period of time specified or referred to in Subparagraph 2. Below Each flight coupon will be accepted for carriage on the date and flight for which accommodation has been reserved. When flight coupons are issued on “open-date” basis, accommodations will be reserved upon application, subject to the availability of space. The place and date of issue are set forth on the flight coupons. 2. A ticket issued at normal fare is valid for carriage for one year from the date of commencement of carriage, or if no portion of the ticket is used, from the date of issuance of the ticket. If the ticket is for or includes fare having a shorter period of validity than indicated above, such shorter validity shall apply only in respect to transportation to which such fare applies. 3. Tickets expire at midnight on the date of expiration of ticket validity. Travel on the last continuous portion by the last flight coupon of the ticket must be commenced prior to midnight of the date of expiration but may continue beyond, unless otherwise provided in applicable tariffs. 4. An expired ticket or Miscellaneous Charges Order will be accepted for refund in accordance with Article 11. 5. The booking class printed on the ticket must be identical with the class indicated by the respective PNR. Passenger holding ticket which fails to meet the above condition may be denied from boarding or, may board only after paying a predetermined surcharge. 3 Extension of Ticket Validity 1. Notwithstanding Paragraph 2.3 above, the validity of a ticket will be extended by JJA without additional collection of fare as follows; 1) For no longer than 30 days beyond the original limit when JJA: a. cancels or postpones the flight during the period of validity; b. omits a scheduled stop which is the passenger’s place of departure, place of destination or place of stopover; c. fails to operate a flight reasonably according to schedule; d. cause the passenger to miss a connection; e. is unable to provide previously confirmed spaces. 2) For no longer than 7 days beyond the original limit, when a passenger who holds a ticket valid for one year is unable to obtain space at time of application to JJA. 2. When a passenger is prevented from travelling by reason of illness. Unless otherwise provided in applicable tariffs, when a passenger is prevented from travelling within the period of validity of his or ticket by reason of illness (but not pregnancy), JJA will extend the period of validity of such passenger’s ticket until the date when he/she become fit to travel according to a medical certificate, or until the first service of the class of JJA, for which the fare has been paid, on which space is available after such date from the point where the journey is resumed or from the last connecting point. Provided that, when the flight coupons remaining in the ticket having one year validity involve one or more stopovers, the validity of such ticket will be extended for not more than 3 months from the date shown on the certificate. In such circumstances, JJA will extend similarly the period of validity of ticket of persons travelling with the incapacitated passenger. 3. When a passenger dies enroute, the validity of the tickets of the accompanying immediate family or other persons accompanying the passenger maybe extended by not more than 45 days after the date of death. 4. When a ticket is sold at a special fare containing minimum-stay requirements, the minimum-stay requirement will be waived on presentation of a death certificate or a copy thereof for passengers who are; a. members of the immediate family of a passenger who dies enroute, or b. other persons actually accompanying a passenger who dies enroute.

5. If a passenger holding a special fare ticket with a minimum-stay requirement desires to commence the return travel before the expiry of the minimum-stay period owing to the death of an immediate family member not accompanying the passenger, and a death certificate or a copy thereof is not immediately available, the passenger will be entitled to a refund of the additional amounts paid to permit earlier return, on presentation of a death certificate attesting to the death of such family member after the passenger’s commencement of travel. 6. When a ticket is sold at a special fare containing a minimum-stay requirement, the minimum-stay requirement will be waived when the passenger by reason of illness, substantiated by a medical certificate attesting to the illness of such passenger after passenger’s commencement of travel, desires to commence return travel prior to the minimum-stay period. The passenger will be permitted to return at the special fare paid. The ticket must be endorsed “Early Return Account Illness of (name of passenger)”. A copy of the medical certificate must be retained in the files for a minimum period of 2 years. Note: The same provisions will apply to immediate family member(s) accompanying the passenger. 4 Coupon Sequence and Production of Ticket Flight coupons must be used in sequence from the place of departure as shown on the passenger coupon. Flight coupons must be presented with the passenger coupon. The passenger throughout his journey must retain the passenger coupon and all flight coupons not previously surrendered to carrier. He/she must, when required, produce the ticket and surrendered any applicable portion to carrier. 5 Absence, Loss or Irregularities of Ticket JJA will refuse carriage to any person not in possession of a valid ticket. In case of loss or non-presentation of the ticket or the applicable portion thereof, carriage will not be furnished for that part of the trip covered by such ticket or portion thereof until the passenger purchases another ticket at the current applicable fare for the carriage to be performed. JJA will not accept a ticket if any part of it is mutilated or if it has been altered or erased by other than carrier or if it is presented without the passenger coupon and all unused flight coupon. Notwithstanding the foregoing, JJA will issue at the passenger’s request a new ticket to replace the lost one upon receipt of proof of loss satisfactory of JJA and may collect a service charge or handling fee, and if the circumstances of the case in JJA’s opinion warrant such action; provided that the passenger agrees, in such form as may be prescribed by JJA, to indemnify for any loss or damage which JJA may sustain by reason thereof. 6 Non-Transferability A ticket is not transferable, but JJA shall not be liable to the person entitled to receive such refund for honoring or refunding such ticket when presented by someone other than the person entitled to be transported thereunder or to a refund in connection therewith. If a ticket is in fact used by any person other than the person to whom it was issued, with or without the knowledge and consent of the person to whom it was issued, JJA will not be liable for death or injury of such unauthorized person or for the loss, destruction, damage, or delay of such unauthorized person’s baggage or other personal property arising from or in connection with such unauthorized use. ARTICLE 4 STOPOVER 1. Permission of Stopover 1) In case of a passenger holding a ticket issued at the normal fare, stopovers within the period of ticket validity will be permitted at any scheduled stop unless government requirements or applicable tariffs don’t permit such stopover. 2) In case of passengers holding tickets issued at special fare, stopovers will be subject to the limitations, prohibitions or additional stopover charges as provided in the applicable tariffs of JJA. 2. Prior Arrangement Stopovers shall be arranged with KAL in advance and specified in the passenger ticket. ARTICLE 5 FARES, CHARGES AND ROUTINGS 1 Applicable Fares and Charges 1. Except as otherwise provided in applicable tariffs, applicable fares and charges for carriage governed by these Conditions of Carriage and other applicable tariffs are those duly published by JJA, and shall be those in effect on the date on which full payment is made, for travel on the specific dates and journey shown on the ticket. When the fares or charges collected are not the applicable fares or charges, the difference will be refunded to or collected from the passenger, as may be appropriate. In the event of a voluntary change to the originating flight, the fares and charges for the passenger’s journey shall be recalculated in accordance with the fares and charges in effect on the date on which the change is made and is reflected on the ticket. 2. Published fares apply only for carriage from the airport at the point or origin to the airport at the point of destination and do not include ground transfer service within airport areas or between airports or between airport and downtown except where applicable tariffs specifically provide that such ground transfer service will be furnished without additional charge. 3. Except as otherwise provided in applicable tariffs, direct fares published in tariffs take precedence over any combination of intermediate fares applicable to the same class of service between the same points. 4. Except as otherwise provided in applicable tariffs, fares published in tariffs entitle the passenger to occupy one seat of the applicable class provided that, when a passenger cannot be accommodated in one seat because of his size, no charge will be made for providing an additional seat subject to the availability of space. If the passenger reserves two seats in advance, twice the applicable fare must be charged. 2 Construction of Unpublished Fares When the fare between any two points is not specifically published, such fare will be constructed as provided in applicable tariffs. 3 Routings Except as otherwise provided in applicable tariffs, fares apply in either direction and only to routings published in connection therewith. If there is more than one routing at the same fare, the passenger, prior to issuance of the ticket, may specify the routing, and in respect to any open-date portion of such ticket, may specify an optional routing; if no routing is specified, JJA may determine the routing. 4 Payment of Fares and Charges Subject to currency exchange laws, government regulations and acceptability to JJA, payment of fares and charges may be made in a currency other than the currency in which the fare or charges is published. 1. Applicable exchange rate The rate of exchange established by JJA will be used to convert the published fare or charge into the selling currency unless otherwise provided in applicable tariffs. 2. When Payment is made in other currency than KRW Except otherwise provided by laws, orders, requirements and/or regulations of government, the exchange rate for conversion of published fare and/or charges into foreign currency amount shall be the bankers’ buying rate of Monday which shall be used from Tuesday of the week to Monday of the following week; provided that, a. The rate of Friday of the previous week shall be used from Tuesday of the week to Monday of the following week in case Monday is bank holiday; b. Applicable bankers’ buying rate of the day on which refund application is accepted by JJA shall be used when the ticket or charge paid for in foreign currency is refunded in KRW. c. Applicable bankers’ buying rate of issuing day shall be applied only to KRW amount to be collected additionally when ticket reissuance results in collection of additional charge: 3. Applicable bankers’ selling rate or buying rate mentioned above means bankers’ selling or buying rate of Monday of the week which shall be used by JJA from Tuesday of the week to Monday of the following week. 5 TAXES Any tax or other charge imposed by government authority and collected from a passenger will be in addition to the published fares and charges. ARTICLE 6 REVISED ROUTINGS, FAILURE TO CARRY AND MISSED CONNECTIONS 1 Changes Requested by passenger 1. At a passenger’s request, JJA will effect a change in the routing (other than point of origin), carrier(s), class(es) of service, destination, fare or validity specified in an unused ticket, flight coupon(s) or Miscellaneous Charges Order by issuing a new ticket or by endorsing such unused ticket, flight coupon(s) or Miscellaneous Charges Order, provided that; (1) JJA issued the original ticket or Miscellaneous Charges Order or, (2) JJA is the carrier designated in the “ via carrier ” box, or no carrier is designated in the “ via carrier ” box, of the unused flight coupon or Miscellaneous Charges Order for the first onward carriage from the point on the route the change is to commence; however, where the carrier who issued the ticket is designated as carrier for any subsequent section(s) and has an office or general agent who is authorized to make endorsement, at the point on the route where the change is to commence where the passenger makes his request for such change, JJA shall obtain such issuing carrier’s endorsement; or (3) JJA has received written or telegraphic authority to do so from the carrier entitled to effect the change. 2. When the rerouting results in a change of fare, the new fare and charges shall be calculated as provided in the applicable tariffs. 3. In the case of a ticket or Miscellaneous Charges Order issued pursuant to a Prepaid Ticket Advice, the authorization to make endorsement shall not apply to the carrier issuing such document but shall remain with the carrier issuing the Prepaid Ticket Advice. 2 Involuntarily Revised Routings 1. In the event JJA cancels a flight, fails to operate a flight reasonably according to schedule, fails to stop at a point to which the passenger is destined or is ticketed to stopover, is unable to provide previously confirmed space, or the passenger is refused carriage or removed in accordance with Article 8, JJA shall either; (1) Carry the passenger on another flight of JJA, on which space is available, (2) Make involuntary refund in accordance with Article 11. 4 2. In the event a passenger misses an onward connecting flight of JJA on which space has been reserved for him because the delivering carrier did not operate its flight according to schedule, or changed the schedule of such flight, the delivering carrier will arrange for the carriage of the passenger or make other arrangements and JJA shall not be liable for such missed connection. 3. An involuntarily rerouted passenger shall be entitled to retain the free baggage allowance applicable to the fare originally paid. This provision shall apply even though the passenger may be transferred from an mono class service and is entitled to a fare refund. ARTICLE 7 RESERVATIONS 1 General A ticket will be valid for the flight(s) for which reservation(s) shall have been made, and only between the points named on the ticket or applicable flight coupons. A passenger holding an unused open-date ticket or portion thereof or Miscellaneous Charges Order, or who wishes to change his ticketed reservation to another date shall not be entitled to any preferential right with respect to the obtaining of reservations. 2 Conditions of Reservations 1. A reservation for space on a given flight is valid when the availability and allocation of such space is confirmed by reservations agent of JJA and a record of the confirmed space is reflected in JJA’s reservation system. Whenever a passenger fails to purchase a ticket for the reserved space by the time fixed by JJA, JJA will cancel the reservations at any time without notice. 2. JJA does not guarantee allocation of any particular space in the aircraft. 3 Arrival of Passengers at Airports The passenger must arrive at the airport or other point of departure by the time fixed by JJA, or if no time is fixed, sufficiently in advance of flight departure time to permit completion of government formalities and departure procedures. If the passenger fails to arrive at such airport or other point of departure by the established time limits or appears improperly documented and is not ready to travel, JJA will cancel the space reserved for him. Departure will not be delayed for passenger who arrives at airport or other point of departure too late for such formalities to be completed before scheduled departure time. JJA is not liable to the passenger for loss or expense due to passenger’s failure to comply with this provision. 4 Cancellation of Reservations If a passenger fails to occupy space which has been reserved for him, JJA will cancel all other reservations held by such passenger for continuing or return space. 5 Change of Reservations Charges The passenger will be charged for any change of reservations, cancel or refund after purchased ticket by JJA regulation. 6 Personal Information A passenger or its agent should furnish JJA with the required passenger’s personal information (name, telephone number, address, credit card number, etc.) for requesting flight reservation or any other services that may or may not be provided through JJA. In order to provide the requested services or products, JJA may share the passenger’s personal information with any of its own offices, its agents, other carriers, other affiliated companies, and the providers of services, and that may provide the passenger’s personal information with the government authorities or other agencies concerned to comply with all laws, regulations, orders, demands of countries to be flown from, to or over. ARTICLE 8 LIMITATIONS OF CARRIAGE 1 Refusal, Cancellations or Removal 1. JJA may refuse to carry, cancel the reserved space of, or remove enroute any passenger when, in the exercise of its reasonable discretion, (1) Such action is necessary for reason of safety;

(2) Such action is necessary to prevent violation of any applicable laws, regulations or orders of any state or country to be flown from, into or over; (3) The conduct, age or mental or physical condition of the passenger is such as to; a. require special assistance of JJA or b. cause discomfort or make himself objectionable to other passenger, or c. involve any hazard or risk to himself or to other persons or to property, or (4) The passenger refuses on request to produce positive identification or (5) The passenger refuses to permit search of his person or property for explosives or a concealed, deadly or dangerous weapon or articles. (6) The passenger has been notified in writing that he/she will be refused carriage for inflicting damage on or disrupting other passengers’ comfort and safety or, displaying any act of violence to any JJA employee or making repeated improper claims during business transactions resulting JJA’s inability to provide a public service 2. If question arises of any aircraft being overloaded, JJA shall decide which passengers or articles will be carried. 3. JJA will make refund as provided in Article 11. ④ for the unused portion of the ticket of a passenger so refused carriage or removed enroute for any reason specified in the foregoing Paragraphs. 2 Conditional Acceptance for Carriage If a passenger whose status, age, or mental or physical condition is such as to involve any hazard or risk to himself is carried, it is on the expressive condition that JJA shall not be liable for any injury, illness or disability or any aggravation or consequences thereof, including death, caused by such status, age, or mental or physical condition and that the conditions for his/ her carriage shall be subject to the applicable tariffs and the requirements of JJA’s regulations. 3 Carriage or Unaccompanied Children and Infants 1. Children not accompanied in the same compartment by a passenger of 12 years of age or over, will be accepted for carriage subject to advance arrangements with JJA, and only under the following conditions; (1) They are accompanied to the airport of departure by a parent, guardian or responsible adult who shall remain with the child until enplaned and satisfactory evidence is presented by such parent, guardian or responsible adult that the child will be met at the airport of stopover or destination by another parent, guardian or responsible adult upon deplaning; (2) The flight on which space is held is not expected to terminate short of or by-pass destination due to weather conditons or others; (3) A letter of indemnity in such form as may be prescribed by JJA and signed by a parent; guardian or responsible adult is presented to JJA at the time of reservations; 2. Children under 5 years of age and Infants will not be accepted for travel unaccompanied. ARTICLE 9 BAGGAGE 1 General 1. Carriage of baggage shall be subject to these Conditions of Carriage and other applicable tariffs in effect on the date of commencement of carriage covered by the first flight coupon of the ticket. In the event that any country has its own laws, regulations or orders, those laws shall take precedence. 2. JJA will not carry baggage until the passenger has paid all applicable charges or has complied with credit arrangements established by JJA. 2 Free Baggage Allowance for Passenger 1. Children for whom the fare is 75 percent or more of the applicable adult fare shall be granted the checked baggage allowance (15kilograms; 33pounds) on the same basis as a passenger paying the adult fare. 2. Free Checked Baggage Allowance for Passenger (1) When travel is not to/from points in USA, US territories a. Passengers paying the adult fare shall be permitted the checked baggage allowance of 15kilograms. b. Children paying at least 75 percent of the adult fare are entitled to the same allowance as adults. c. Infants not entitled to a seat shall be allowed 10 kilograms and in addition one checked or carry-on fully collapsible stroller/ push-chair or infants carrying basket or infants car seat, which may be carried in the passenger cabin subject to the availability of space. d. In addition to the checked baggage allowance provided for in above Paragraphs, incapacitated passengers may carry free of charge one wheelchair and/or other assistive devices they are dependent upon. e. limitations on size and weight may be enforced due to security and safety regulations. (2) When travel is to/from points in USA, US territories a. Passengers paying the adult Economy class fare shall be granted as free baggage allowance two pieces of baggage provided that the weight of each bag does not exceed 23 kilograms. b. Children paying at least 75 percent of the adult fare are entitled to the same allowance as adults. c. Infants not entitled to a seat shall be allowed 10 kilograms and in addition one checked or carry-on fully collapsible stroller/ push-chair or infants carrying basket or infants car seat, which may be carried in the passenger cabin subject to the availability of space. d. In addition to the checked baggage allowance provided for in above Paragraphs, incapacitated passengers may carry free of charge one wheelchair and/or other assistive devices they are dependent upon. e. limitations on size and weight may be enforced due to security and safety regulations. 3. Pooling of free baggage allowance When two or more passengers, travelling as one group to a common destination or point of stopover by the same flight, present themselves and deliver their baggage to JJA at the same time and p lace, the passengers shall be permitted, upon request, a total free baggage allowance equal to the combination of their individual free baggage allowance. Baggage weight in excess of the combined free baggage allowance shall be subject to excess baggage charges. 3 Excess Baggage 1. Baggage exceeding the checked baggage allowance set forth in Paragraph 2 above shall be charged excess baggage charges prescribed in the applicable tariffs in effect on the date of issuance of excess baggage ticket. 2. If the total dimensions and/or weight of a piece of luggage exceed JJA’s free baggage allowance, then an excess baggage charge may be assessed by JJA. 3. At the passenger’s option, excess baggage charges will be payable either at the point of origin for t he entire journey via stopover points to final destination (even though baggage may not in some cases be checked through to final destination), or at the point of origin to the point of stopover, in which case, when trip resumed, the charges will be payable from the point of stopover to the next point of stopover or destination. If a passenger has paid all excess baggage charges and then attempts to check additional baggage mid-journey, JJA will only accept said baggage under the condition that an additional excess baggage charge for the entire journey or next stopover point has been paid as well. 4. JJA will not carry baggage until the passenger has paid all applicable charges or has complied with credit arrangements established by JJA. 5. In case a passenger is rerouted or his carriage cancelled, the provisions which govern with respect to the payment of additional fares or the refunding of fares shall likewise govern the payment or the refunding of excess baggage charges. 4 Items unacceptable as Baggage In the opinion of JJA, the weight, shape, size or character of baggage renders it unsuitable for carriage on the aircraft, JJA, prior to or at any stage of the journey, will refus e to carry the baggage or any portion thereof. 1. Items specified in the International Civil Aviation Organization (ICAO) Technical Instructions for the Safe Transport of Dangerous Goods by Air and the International Air Transport Association (IATA) Dangerous Goods Regulations 2. Items which are likely to endanger the aircraft or persons or property on board the aircraft; 3. Items the carriage of which is prohibited by the applicable laws, regulations or orders of any state to be flown from, to or over; 4. Items which are likely to be damaged by air carriage; 5. Items which are unsuitably packed; 5 Right of Search For reasons of safety and security, JJA has the right, but not the obligation, to verify in the presence of passenger the contents of his baggage, and in the case of unaccompanied baggage, to open and examine such baggage whether or not the passenger is present. The existence or exercise of such right shall not be construed as an agreement, expressed or implied, by JJA to carry such contents as would otherwise by precluded from carriage. 6 Checked Baggage 1. Nothing contained in these Conditions of Carriage shall entitle a passenger to have his baggage checked on a journey for which JJA does not offer facilities for checking of baggage. 2. Upon delivery to JJA of baggage to be checked, JJA will insert in the ticket or system the number of pieces and weight of the checked baggage. In addition, JJA will issue, for identification purpose only, a baggage tag for each piece of baggage so delivered and covered by the baggage check./li> 3. All checked baggage must be properly packed in suitcases or similar containers in order to ensure safe carriage with ordinary care in handling. Electronic devices such as laptop computers, cellular phones, cameras, camcorders, MP3 players, fragile or perishable articles, unsuitably packed items, money, jewelry, negotiable papers, securities or other valuables, samples or business documents will not be accepted as checked baggage 4. In the event that an individual attempts to check baggage after the allotted check-in time has passed ABL reserves the right to refuse acceptance of said baggage. 5. Checked baggage will be carried on the same aircraft as the passenger unless such carriage is impracticable due to safety, security or other reasons, in which event JJA will carry the checked baggage on the next flight on which space is available. 6. JJA reserves the right to refuse the loading or transport of any baggage in which its owner is not the name listed on the ticket or boarding pass, and furthermore JJA reserves the right to claim all losses and expenses resulting from said baggage against its owner and the passenger who presented the baggage to JJA to be checked (1) Nothing contained in these Conditions of Carriage shall entitle a passenger to have his baggage checked on a journey for which JJA does not offer facilities for checking of baggage. (2) Upon delivery to JJA of baggage to be checked, JJA will insert in the ticket the number of pieces and weight of the checked baggage (which act shall constitute the issuance of the baggage check); in addition, JJA will issue, for identification purpose only, a baggage (claim) tag for each piece of baggage so delivered and covered by the baggage check. All checked baggage must be properly packed in suitcases or similar containers in order to ensure safe carriage with ordinary care in handling. Fragile or perishable articles, money, jewelry, silverware, negotiable papers, securities or other valuables, samples or business documents will not be accepted as checked baggage. 7 Carry-on Items Free of Charge 1. Baggage allowance for carry on items for the services of mono class is subject to JJA ‘s conditions of limitations. In addition to the checked baggage allowance, each passenger may carry, without additional charges, hand baggage suitable for placing in closed overhead rack or under the passenger’s seat with maximum dimensions (the sum of the three dimensions of all such carry on items) not more than 115cms(45inches), only when they are placed in the passenger’s sole custody. 2. JJA will accept one (1) more carry-on item below lists; a. A handbag; b. A few of Books; c. An overcoat or blanket or wrap; d. Infant’s food for consumption in flight; e. A pair of crutches, braces and the prosthetic devices for the physically handicapped passenger’s use; provided that the passenger is fully dependent upon them. 3. Carry-on luggage may be limited according to airport conditions, security regulations, or insufficient space. 4. Objects not suitable for transport in the cargo compartment (such as delicate musical instruments and the like) will only be accepted for transportation in the cabin compartment if due notice has been given in advance and permission granted by JJA. The transport of such objects may be charged for separately. 5. JJA will limit the acceptance of carry-on items for carriage in passenger cabin to conform to security regulations or others. 8 Collection and Delivery of Baggage 1. The passenger shall collect his or her baggage as soon as it is available for collection at places of destination or stopover. 2. Only the bearer of the baggage identification tag, delivered to the passenger at the time the baggage was checked, is entitled to delivery of baggage. JJA is under no obligation to ascertain that the bearer of the baggage identification tag is entitled to delivery of the baggage and JJA is not liable for any loss, damage or expense arising out of or in connection with its failure so to ascertain. Except as provided in Subparagraph 4 below, delivery will be at the destination shown in the baggage check. 3. If the provisions of Subparagraph 2 above are not complied with by a person claiming the baggage, JJA will deliver the baggage only on condition that such person established to JJA’s satisfaction his rights thereto and, if required by JJA, such person shall furnish adequate security to indemnify JJA for any loss, damage or expense which may be incurred by JJA as a result of such delivery. 4. At the request of the bearer of the baggage identification tag, checked baggage may be delivered at the place of departure or at an intermediate stopping place upon the same condition provided for in subparagraph above, unless precluded by government regulations and 2 unless time

and circumstances do not permit. In delivering baggage at the place of departure or at an intermediate stopping place, JJA shall be under no obligation to refund any charges paid for such baggage. 5. Acceptance of baggage by the bearer of the baggage identification tag without written complaint at the time of delivery is sufficient evidence that the baggage has been delivered in good condition and in accordance with the Contract of Carriage. 9 Excess Value Charges 1. A passenger may declare a value for baggage in excess of US$ 20 (250French Gold Francs) or its equivalent per kilogram in the case of checked baggage and US$ 400 (5,000 French Gold Francs) or its equivalent per passenger in the case of unchecked baggage or other property. When such declaration is made, a charge for such excess value will be assessed by JJA for the carriage performed by JJA at the rate of US$ 0.50 for each US$ 100 or fraction thereof, subject to the valuation limits of Subparagraph 2 below. 2. Except as otherwise provided in applicable tariffs, excess value charges will be payable at the point of origin for the entire journey to final destination; provided that, if at a stopover en route a passenger declares a higher excess value than that originally declared, additional excess value charges for the increased value from such stopover point to final destination will be payable. 3. No baggage or other property of any one passenger having a declared value in excess of US$ 2,500 will be accepted for carriage by JJA, unless advance arrangement is made. 4. In case a passenger is rerouted or his carriage cancelled, the provisions which govern with respect to the payment of additional fares or the refunding of fares shall likewise govern the payment or the refunding of excess value charges, but no refund of value charges will be made when a portion of the carriage has been completed. 10 Animals JJA will not accept any animals to checked baggage and carry-on item. ARTICLE 10 SCHEDULES, DELAYS AND CANCELLATIONS OF FLIGHTS 1 Schedules The times shown in timetables or elsewhere are approximate and JJA may be obliged to change the time of flights, open for reasons beyond JJA’s control, and consequently, times in timetables or elsewhere are not guaranteed, and thus form no part of the contract of carriage. Schedules are subject to change without notice and JJA assumes no responsibility for making connections. JJA will not be responsible for errors or omissions either in timetables or other published schedules. 2 Cancellations 1. JJA may, without notice, substitute alternate carrier or aircraft. 2. JJA may, without notice, cancel, terminate, divert, postpone or delay any flight or the further right of carriage or reservation of traffic accommodations and determine if any departure or landing should be made, without any liability except to refund in accordance with these Conditions of Carriage the fare and charges for any unused portion of the ticket: (1) because of any fact beyond its control (including, but without limitation, meteorological conditions, acts of God, force majeure, strikes, riots, civil commotions, embargoes, wars, hostilities, disturbances, or unsettled international conditions), actual, threatened or reported, or because of any delay, demand, condition, circumstances or requirement due, directly or indirectly, to such fact; (2) because of any fact not to be foreseen, anticipated or predicted; (3) because of any government regulations order, demand or requirement; or (4) because of shortage of labor, fuel or facilities, or labor difficulties of JJA or others. In the event JJA fails to operate a flight or delays its air transportation service by purpose or mistake, the compensation shall be implemented by JJA according to the related provisions of General Conditions of Carriage, applicable tariffs, regulations or law. 3. JJA may cancel the right or further right of carriage of the passenger and his baggage upon refusal of the passenger, after demand by JJA, to pay the fare or portion thereof so demanded, or to pay any charge so demanded and assessable with respect to the baggage of the passenger, without being subject to any liability therefore except to refund, in accordance with these Conditions of Carriage, the unused portion of the fare and charge(s) previously paid, if any. 3 Lengthy Tarmac Delays at U.S Airports Jeju Air’s Contingency Plan for Lengthy Tarmac Delays required under 14 C.F.R.§ 259.4, which does not form any part of these Conditions of Carriage, shall apply at covered U.S.airports. ARTICLE 11 REFUNDS 1 General Refund by JJA for an unused ticket or portion thereof Miscellaneous Charges Order will be made in accordance with the following conditions, except as otherwise provided in Paragraph 6 below ; 1. Application for refund should be made during the period of validity of the ticket or Miscellaneous Charges Order, and JJA will refuse refund when application there for is made more than 30 days after expiration date of the ticket or Miscellaneous Charges Order. 2. Person requesting refund must surrender to JJA all unused flight coupon(s) of the ticket of Miscellaneous Charges Order. 3. Except as provided below, refund will be made to the person named as the passenger on the ticket or Miscellaneous Charges Order. (1) Refund of tickets or Miscellaneous Charges Orders issued:/li> (2) Pursuant to a Prepaid Ticket Advice will be made to the person who paid JJA for them; If, at the time of purchase, the purchaser designates a person to whom refund shall be made, refund will be made to the person so designated. (3) If, at the time of application for refund, satisfactory evidence is submitted that a company purchased the ticket or Miscellaneous Charges Order on behalf of its employee, or the travel agent had made refund to its client, JJA will refund directly to the employee’s company or the travel agent, respectively. 4. Refund made in accordance with this rule to a person representing himself as the person, company or travel agent named or designated in the document presented for refund will be a valid refund and JJA will not be liable to the true person for another refund. 5. JJA may refuse refund on a ticket which has been presented to government officials of a country or to JJA as evidence of intention to depart there from unless the passenger establishes to JJA’ s satisfaction that he has permission to remain in the country or that he will depart there from by another carrier or conveyance. 2 Currency All refunds will be subject to government laws, rules, regulations or orders of the country in which the ticket or Miscellaneous Charges Order was originally purchased and of the country in which the refund is being made. Subject to the foregoing provisions, refunds will normally be made in the currency in which the fare was paid, or in lawful currency of Korea or of the country where the refund is made or in the currency of the country in which the ticket or Miscellaneous Charges Order was purchased, in an amount equivalent to the amount due in the currency in which the fares were originally collected. 3 Refund Handling JJA will make refunds through its respective office, and will require prior written applications for refunds to be prepared by passengers on special forms furnished by JJA. 4 Involuntary Refund 1. For the purpose of this paragraph, the term “Involuntary Refund” means any refund made because the passenger is prevented from using the carriage provided for in his ticket because of cancellation of flight, or inability of JJA to provide previously confirmed space, or substitution of a different type of equipment or class of service by JJA, or missed connections, or postponement or delay of flight, or omission of scheduled stop, or refusal to carry under conditions prescribed in Article 8. 2. The amount of an involuntary refund will be as follows; (1) When no portion of the trip has been made, the amount of refund will be the amount of fare paid. (2) When a portion of the ticket has been made, the amount of refund will be the amount computed as shown in a. and b. below, whichever is higher: a. Either an amount equal to the one-way fare less the same rate of discount, if any, that was applied in computing the original one-way fare (or on round trip or circle trip tickets, one-half of the round trip fare less the same rate of discount, if any) and charges applicable to the unused transportation from the point of termination to the destination or stopover point named on the ticket or to the point at which transportation is to be resumed; or b. The difference between the amount fare paid and the amount of fare for the transportation used. 5 Voluntary Refund 1. The term “Voluntary Refund”, for the purpose of this Paragraph, means any refund of a ticket or Miscellaneous Charges Order other than “Involuntary Refund” as defined in Paragraph 4 above. 2. The amount of a voluntary refund will be as follows: (1) When no portion of the ticket has been used, the amount of refund will be the amount of fare paid, less any applicable service charges and communication expenses. (2) When a portion of the trip has been made, the amount of refund will be the difference, if any, between the full amounts of fare paid and the amount of fare and charges applicable between the points between which the ticket has been used, less any applicable service charges and communication expenses. 6 Lost Ticket (MCO issued) The following provisions will govern refund of a lost ticket or unused portion thereof: 1. JJA will refund a lost ticket or lost portion thereof after receipt of written request and receipt of proof of loss satisfactory to JJA. Such written application must be made not more than 30 days after the expiration date of the lost ticket. Refund will only be made provided that the lost ticket or lost portion thereof has not been honored for transportation of, or refunded, upon surrender by any person prior to the time the refund is made and further provided that the passenger agrees to indemnify JJA and hold JJA harmless against any loss, damage, claim or expense, including (but without limitation) reasonable attorney fees, which JJA may suffer or incur by reason of such refund and/or the subsequent presentation of said ticket(s) for transportation, refund or any other sue whatsoever. Refund will be made on one of the following bases, whichever is applicable: (1) If no portion of the ticket has been used: a. if the passenger has not purchased a replacement ticket, refund will be the full amount of the fare paid ; b. if the passenger has purchased a replacement ticket with the same condition of the lost ticket, JJA will refund to the passenger the amount of the fare paid for such replacement ticket. However, if the passenger has purchased a replacement ticket with conditions different from the lost ticket, the amount of refund will be calculated according to the applicable tariffs. (2) If a portion of the ticket has been used; a. If the passenger has not purchased a replacement ticket, refund will be the difference, if any, between the full amount of fare paid and the amount of fare and charges applicable between the points between which the ticket has actually been used; b. If the passenger has purchased a replacement ticket with the same condition of the lost ticket, JJA will refund to the passenger the amount of the fare paid for such replacement ticket. However, if the passenger has purchased a replacement ticket with conditions different from the lost ticket, the amount of refund will be calculated according to the applicable tariffs. (3) The refunds described in the provisions of (1) and (2) above will be subject to any expenses incurred by JJA as a result of such loss. ARTICLE 12 GROUND TRANSFER SERVICES Except as otherwise specified in applicable tariffs, JJA does not maintain, operate or provide ground transfer service within airports or between airport and downtown. Except where ground transfer service is directly operated by JJA, it is agreed that any such service is performed by independent operators who are not and shall not be deemed to be agents or servants of JJA. Anything done by an employee, agent or representative of JJA in assisting the passenger to make arrangements for such ground transfer service shall in no way make JJA liable for the acts or omissions of such an independent operator. In cases where JJA maintains and operates for its passengers such ground transfer services, the terms, conditions, rules and regulations of JJA, including (but without limitation) those stated or referred to in their tickets, baggage checks and baggage valuation agreements shall be deemed applicable to such ground transfer services. No portion of the fare shall be refundable in the event ground transfer services are not used. ARTICLE 13 HOTEL ACCOMMODATIONS AND IN-FLIGHT MEALS 1 Hotel Accommodations 1. Hotel expenses are not included in passenger fares. 2. In the case of scheduled overnight or other stops on through flights, hotel accommodation may be borne by JJA at its option. 3. When requested by passengers, JJA may make application on their behalf for hotel reservations, but the availability thereof is not guaranteed. All expenses, incurred by JJA or its representatives in arranging, or attempting to arrange for reservations will be chargeable to passengers 2 In-flight Meals In-flight meals, if served, will be free of charge, except as otherwise specified in applicable tariffs. 3 Arrangements made by JJA In making arrangements for hotel or other housing and board accommodation for passenger, whether or not the cost of such arrangements is for the account of JJA, JJA acts only as agent for the passenger and JJA is not liable for loss, damage or expense of any nature

whatsoever incurred by the passenger as a result of or in connection with the use by the passenger of such accommodation or the denial of the use thereof to the passenger by any other person, company or agency. ARTICLE 14 ADMINISTRATIVE FORMALITIES 1 Compliance with Regulations The passenger is responsible for obtaining all required travel documents and visas and for complying with all laws, regulations, orders, demands and travel requirements of countries to be flown from, into or through which he transit. JJA shall not be liable for the consequences to any passenger resulting from his failure to obtain such documents or visas or to comply with such laws, regulations, orders, demands, requirements or instructions. 2 Passports and Visas 1. The passenger must present all exit, entry and other documents required by laws, regulations, orders, demands or requirements of the countries concerned. JJA will refuse carriage to any passenger who has not complied with applicable laws, regulations, orders, demands or requirements, or whose documents do not complete. JJA is not liable to the passenger for loss or expense due to the passenger’s failure to comply with this provision, and if damage is caused to JJA because of passenger’s failure to comply with this provision, the passenger shall indemnify JJA there for. 2. Subject to applicable laws and regulations, the passenger agrees to pay the applicable fare whenever JJA, on government order, is required to return a passenger to his point of origin or elsewhere due to the passenger’s inadmissibility into a country, whether of transit or of destination. JJA will apply to the payment of such fares any funds paid to JJA for unused carriage, or any funds of the passenger in the possession of JJA. The fare collected for carriage to the point of refusal of entry deportation will not be refunded by JJA. 3 Customs Inspection If required, the passenger must attend inspection of his or her baggage, checked or unchecked, by customs or other government officials. JJA accepts no responsibility toward the passenger if the latter fails to observe this condition. If damage is caused to JJA because of the passenger’s failure to observe this condition, the passenger shall indemnify JJA there for. 4 Government Regulations No liability shall attach to JJA if JJA in good faith reasonably determines that what it understands to be applicable law, government regulation, demand, order or requirement requires that it refuse and it does refuse to carry a passenger. ARTICLE 15 LIABILITY OF CARRIERS 1 Successive Carriers Carriage to be performed under one ticket or under a ticket and any conjunction ticket issued in connection therewith by several successive carriers is regarded as a single operation. 2 Laws and Provisions Applicable 1. Carriage hereunder is subject to the rules relating to liability and limitation established either by the Warsaw Convention, in case of international carriage as defined by the Warsaw Convention, or by the Warsaw Convention as amended at The Hague, 1955, in case of international carriage as defined by the Warsaw Convention as amended at The Hague, 1955, or in case of international carriage other than that defined by the Convention. 2. to the extent not in conflict with the provisions of Subparagraph 1. Above, all carriage and other services performed by JJA are subject to: (1) Applicable laws (including national laws implementing the Convention or extending the rules of the Convention to carriage which is not “international carriage” as defined in the Convention), government regulations, orders and requirements, (2) These Conditions of Carriage and applicable tariffs, regulations and timetables (but not the times of departure and arrival therein specified), which may be inspected at any of its offices and in any airport from which it operates regular services. 3. Carrier’s name may be abbreviated in the ticket and carrier’s address shall be the airport of departure shown opposite the first abbreviation of carrier’s name in the ticket; and for the purpose of the Convention, the agreed stopping place are those places, except the place of departure and The place of destination, set forth in the ticket and any conjunction ticket issued therewith or shown in carrier’s timetables as scheduled stopping places on the passenger’s route. A list giving the full name and its abbreviation of each carrier is set forth in applicable tariffs. 3 Scope of Liability Except as the Convention of other applicable law may otherwise require: JJA is not liable for any death, injury, delay, loss or claim of whatsoever nature (hereinafter in this Conditions of Carriage collectively referred to as “damage”) arising out of or in connection with carriage or other services performed by JJA incidental thereto 1. Unless such damage is proved to have been caused by the negligence or willful fault of JJA and any liability JJA has for damage will be reduced by any negligence on passenger’s part which causes or contributes to the damage, except as otherwise provided in Paragraph 3. (1), (2) 2. JJA is not liable for any damage directly and indirectly arising out of compliance with laws or with government regulations, orders or requirements, or from failure of the passenger to comply with same, or out of any cause beyond JJA‘s control. 3. With respect to carriage performed by JJA and with respect only to claims made by passenger of JJA or members of their families, but not with respect to any claim made by or on behalf of any other party: (1) As to any claim arising out of death of or, wounding or other bodily injury to, a passenger within the meaning of the Convention, JJA shall not avail itself of any defense under Article 20 (1) of the Warsaw Convention, nor invoke the limitation of liability in Article 22 (1) of the Warsaw Convention as amended at the Hague, 1955 with respect to that portion of such claim which does not exceed 100,000 SDRs. (2) In the case of carriage subject to the Montreal Convention, as to any claim arising under Article 17 of the Convention, JJA shall not avail itself of any defense under Article 20(1) of the Convention with respect to that portion of such claim which does not exceed 113,000 SDRs. (3) Except as otherwise provided in Subparagraphs (1) and (2) hereof, JJA reserves all defenses available under the Convention to any such claim, JJA also reserves all rights of recourse against any other person, including without limitation, rights of contribution and indemnity. (4) Neither the waiver of limits nor the waiver of defense shall be applicable in respect of claims made by public social insurance or similar bodies (except with respect to any such bodies of the United States) however asserted, such claims shall be subject to the limit in Article 22(1) and to defenses under Article 20(1) of the Convention. 4. The foregoing waiver limitation of liability notwithstanding Subparagraphs 3 (1) and 3 (2) above, shall not apply with respect to any claim made by, on behalf of, or against any passenger or person who has willfully caused the death, wounding or other bodily injury of passenger. As to such claims, JEJU AIR reserves the right to assert all defenses available under the Convention and other applicable law. Except, respect to any such bodies of the United States. 5. In any event liability of JJA for delay of passenger shall not exceed the limitation set forth in the Convention. 6. Any liability for Checked and Unchecked Baggage (1) Any liability of JJA is limited to 250 French Gold Francs (approximately USD 20.00) per kilogram in the case of Checked Baggage, and 5,000 French Gold Francs (approximately USD 400.00) for each passenger in the case of Unchecked Baggage or other property. The liability of JJA is limited to 1,131 SDRs for checked and unchecked baggage where the Montreal Convention applies to your journey. (2) If in the case of checked baggage a higher value is declared in advance and additional charges are paid pursuant to paragraph 9 of Article 9, the liability of JJA shall be limited to such higher declared value. (3) In no case JJA’s liability shall not exceed the amount of proven damage. All claims are subject to proof of actual loss suffered by the passenger. (4) Under no circumstances will JJA be liable for damage to unchecked baggage not attributable to the negligence of JJA. Assistance rendered to the passenger by JJA’s employees in loading, unloading or transshipping unchecked baggage shall be considered as gratuitous service to the passenger. (5) In the event of delivery to the passenger of part but not all of his/ her checked baggage, or in the event of damage of part but not all of such baggage, the liability of JJA with respect to the undelivered or damaged portion shall be reduced proportionately on the basis of weight, notwithstanding the value of any part of the baggage or contents thereof. (6) JJA is not liable for damage to a passenger’s baggage caused by property contained in the passenger’s baggage. Any passenger whose property caused damage to another passenger’s baggage or the property of JJA shall indemnify JJA for all losses and expenses incurred by JJA as a result thereof. (7) JJA is not liable for the damage resulted from the inherent defect of the baggage. In addition, JJA shall not be responsible for minor scratches, scuffs, dents, general wear, resulting from the ordinary and normal baggage handling process. (8) For International transportation, JJA’s liability limit for delay, damage or loss to checked baggage including, but not limited to, electronic devices such as laptop computers, cellular phones, cameras, camcorders, MP3 players, fragile or perishable articles, money, jewelry, negotiable papers, securities or other valuables, medicines, keys, passports and other identification documents, samples or business documents is governed by the Montreal Convention or the General Conditions of Carriage. 7. JJA may refuse to accept any articles which do not constitute baggage as such term is defined herein, but if delivered to and received by JJA, such article shall be deemed to be within the baggage valuation and limit of liability, and shall be subject to the published rates and charges of JJA. 8. When JJA issues a ticket or checks baggage for carriage over the lines of another carrier, JJA does so only as agent of such carrier. JJA shall not be liable for the death, injury or delay of a passenger or the loss, damage or delay of unchecked baggage and/or checked baggage, not occurring on its own line; except that the passenger shall have a right of action for such loss, damage or delay on the terms herein provided against JJA, when JJA is the first carrier or the last carrier under the agreement to carry. 9. The sum mentioned in terms of SDR above shall mean the Special Drawing Rights as defined by the International Monetary Fund. Conversion of the sum into national currencies shall, in case of judicial proceedings, be made according to the exchange rate of such currencies applicable on the date of final judgment by the court, or, in case of other than judicial proceedings, according to the exchange rate of such currencies applicable on the date when the damages to be paid is agreed upon. 10. JJA shall not be liable in any event for indirect, consequential, special or any other form of no compensatory damage arising from carriage subject to these Conditions of Carriage and applicable tariffs, irrespective of JJA’s recognition of the damage in advance. 11. Any exclusion or limitation of liability of JJA under these Conditions of Carriage and applicable tariffs shall apply to agents, servants or representatives of JJA acting within the scope of their employment and also to any person whose aircraft is used by JJA for carriage and his/her agent, servants or representatives acting within the scope of their employment. 4 Reasons for Claims or Actions In the carriage of passenger and baggage, any action for damage, however founded, whether in contract or in tort or otherwise, can only be brought subject to the conditions and limits set out in the Convention. However, the Convention shall not affect in determining the persons who have the right to bring suit and what are their respective rights. ARTICLE I6 TIME LIMITATIONS ON CLAIMS AND ACTIONS 1 Time Limitation on Claims No action shall lie in the case of damage to checked baggage unless the person entitled to delivery complains to an office of JJA forthwith after the discovery of the damage at the latest within 7 days from the date of receipt; and, in the case of delay or loss, unless the complaint is made at the latest within 21 days from the date on which the baggage has been placed at his disposal (in the case of delay) or should have been placed at his disposal (in the case of loss). Every complaint must be in writing and dispatched within the time aforesaid. Where carriage is not “international carriage “as defined in the Convention, failure to give such notice of complaint shall not be a bar to suit where claimant proves that; 1. It was not reasonably possible for him to give such notice; 2. Such notice was not given due to fraud on the part of JJA or 3. JJA had knowledge of damage to passenger’s baggage. 2 Time Limitation on Actions Any right to damage against JJA shall be extinguished if an action in not brought within 2 years reckoned from the date of arrival at the destination, or from the date on which the aircraft ought to have arrived, or from the date on which the carriage stopped. ARTICLE 17 OVERRIDING LAW Insofar as any provision contained or referred to in the ticket or in the Conditions of Carriage or other applicable tariffs may be contrary to mandatory law, government regulations, orders or requirements, such provision shall remain applicable to the extent that it is not overridden thereby. The invalidity of any provision shall not affect any other part. ARTICLE 18 MODIFICATION AND WAIVER No agent, servant or representative of JJA has authority to alter, modify or waive any provision of the contract of carriage or of these Conditions of Carriage or other applicable tariffs. ARTICLE 19 ORIGINAL COPY OF CONDITIONS OF CARRIAGE These Conditions of Carriage may be published in English, and in the event of any inconsistency or conflict between Korean text and English text, the former shall prevail.

A10 Monday, October 5, 2015

Opinion BusinessMirror

editorial

Taking back our rights

here is a political wave that is growing and moving around the globe. It is the people wanting to take back their power from governments. In the second paragraph of the United States Declaration of Independence, it is written: “Governments are instituted among men, deriving their just powers from the consent of the governed.” The words “consent of the governed” washed away thousands of years of monarchies and warlords, who imposed their will without the people having a say in who would rule them. The people of the Catalonia region of Spain were a sovereign state from the 12th century until they were united with Castilian Spain by a marriage of their respective monarchs in 1469. Now in 2015 they have elected a political party that will move toward complete and irrevocable sovereignty because it is the people’s will. The United Kingdom will vote in the next year or so to completely break from being a member of the European Union because the people feel that the politicians pushed for inclusion without considering the country’s best interest. Australia’s Prime Minister Tony Abbot was replaced by his is own party as the nation’s leader in large part because he unilaterally made England’s Prince Philip a Knight of the Order of Australia. This decision created a huge public backlash because this honor is supposed to be reserved for Australians, not foreigners. Political revolutions, both major and minor, have usually been preceded by economic turmoil. The battle cry of the American Revolution was “no taxation without representation.” Malnutrition and hunger due to lost employment and inflation because of bad government economic policies fed the French Revolution. The Philippine economy had contracted more than 20 percent from its 1983 peak when revolution here ousted the Marcos administration. But it is not all about the money. Dr. Jose Rizal wrote these words and they are just as relevant today, “No one ceases to be a man, no one forfeits his rights to civilization merely by being more or less uncultured, and since the Filipino is regarded as a fit citizen when he is asked to pay taxes or shed his blood to defend the fatherland, why must this fitness be denied him when the question arises of granting him some right?” The people want free and transparent access to government information but are told that they are not capable of dealing with all the information that the office of the president must see. The people want a taxation system that is more realistic and fair. And are then asked sarcastically by one presidential aspirant as to which government programs should be cut, as if the people are not smart enough to exercise their right to have their money taxed and spent properly. Governments that treat the rights of the people carelessly or with contempt can risk something far worse than merely losing an election.

PHL improves WEF, WGI rankings Atty. Jose Ferdinand M. Rojas II

RISING SUN

he Philippines’s ranking jumped up five notches in the latest World Economic Forum (WEF) Global Competitiveness Index (GCI) to 47th place from 52nd in 2014 out of 140 economies.

This was one of the findings in the recently-released 2015-2016 Global Competitiveness Report, which also showed that one of the country’s best performance improvements was in the Labor Market Efficiency (LME) ranking, which lifted by nine notches to 82 this year from 91 last year. LME is one of the GCI’s 12 pillars of competitiveness. Many indicators that fall under the LME pillar showed marked improvement, such as Hiring and Firing, leaping by 30 notches from 104th to 74th. According to Labor Secretary Rosalinda Dimapilis-Baldoz, these improved rankings are the gains resulting from the implementation “of institutional, systems, policy, and program reforms in the labor and employment front.” Some of these policy and program reforms are contained in the Philippine Labor and Employment Plan and the Department of Labor Roadmap to Decent Work. Baldoz said the Department of Labor and Employment will continue to address the issues of

youth unemployment, employability of workers and competitiveness of enterprises. She added that they are also studying a two-tier wage system that will encourage productivity and the implementation of the new Labor Laws Compliance System, as well as other systems, programs and policies. Along with improved rankings in the WEF GCI, the country also notched better scores in five out of six indicators in the latest World Ban k Worldw ide Gover nance Indicators (WGI) survey. The Philippines improved its scores in the following: voice and accountability, political stability and absence of violence, government effectiveness, regulatory quality and rule of law. These markers indicate that the good governance policies and reforms instituted by the Aquino administration are resulting in an improved business environment and a robust business sector. These lead to better job opportunities, a more productive economy and a higher standard

of living for Filipinos. Also in line with these improved performances, Economic Planning Secretary Arsenio M. Balisacan says that economic growth could still reach 6 percent this year, despite a slowdown to 5.3 percent in the first half of the year. The Philippines, he said last week, is still “one of the best performers among the emerging economies, especially when one considers the general weakness of the global economy.” He added that should infrastructure and investments be sustained, the economy has the potential to grow 7 percent to 8 percent annually over the next few years, “as advanced economies are expected to recover next year.” T h i s a nt i c i p a t e d g r o w t h looks even more likely should the expected increase in total exports next year become reality. Despite global uncertainties and the risks brought by the El Niño, exports are forecasted to exceed $100 billion for the first time next year, according to a report by the Department of Trade and Industry. This target takes into account expected slowdowns in Japan, the US and China, the top 3 markets for Philippine exports, and the impact of changed global weather conditions upon the availability of raw materials. Investment commitments are also anticipated to reach P779.6 billion next year compared to the projected P719 billion this year.

Let Puerto Rico go bankrupt

By Ramesh Ponnuru | Bloomberg View

roponents of Puerto Rican statehood have always said that the island’s in-between status—it’s not a state, but not independent either—leaves it with the worst of all worlds. The territory’s fiscal crisis is illustrating the point.

Puerto Rico and its subdivisions amassed a lot of debt over the years, partly because the federal government gives them special treatment: Interest paid on their bonds can’t be taxed anywhere in the United States. And while federal bankruptcy law allows municipalities in states to file for Chapter 9 bankruptcy, municipalities in Puerto Rico can’t do the same, because it isn’t a state. That makes lending to them more attractive. But once they’ve borrowed more than they can repay, it makes it harder to clean up the mess. Over the summer, Gov. Alejandro Garcia Padilla said that Puerto Rico’s $72 billion in debts were “not payable.” He wants the federal government to apply bankruptcy law to Puerto Rico as though it were a state. Legislation to that effect is facing skepticism in Congress,

especially from Republicans who say it would amount to a “bailout.” Usually, though, we use the words “government bailout” to describe the use of taxpayer funds to pay off the creditors of an insolvent institution. The bankruptcy bill would stiff the creditors, instead. Two conservative groups, Citizens Against Government Waste and Americans for Tax Reform, favor the bill because they think that the likely alternative is a real bailout—Congress would spend money, they think, rather than let the island’s electric company go dark because of its debts. O t her a rg u ment s a g a i n st extending Chapter 9 to Puerto Rico are similarly wanting. Some opponents say it would “undermine investor confidence” in the island. Events would seem to have already done a lot of the under-

mining. In any case, that’s an argument against having Chapter 9 anywhere, not just in Puerto Rico. T hey a lso say it wou ld be unfair to change the rules: Creditors lent in the expectation that bankruptcy law didn’t apply to Puerto Rico. A better way to look at it is that loans always involve the risk that borrowers won’t be able to pay back the money. That risk has come to pass: They aren’t going to pay it back—at least not in full and on time. Bankruptcy would let the consequences of that fact play out in a relatively orderly fashion, while reducing the exposure of mainland taxpayers. Two other concerns of opponents are more serious. They say, first, that Chapter 9 is no substitute for the major reforms that Puerto Rico needs. In testimony before Congress, the economist Douglas Holtz-Eakin suggested that the island privatize its power utility and that Congress exempt it from the federal minimum wage. He added: “Chapter 9 would not increase economic growth. Chapter 9 would not alter the funda-

Should forecasted targets next year be reached, we can once more expect better rankings in various economic surveys, as proof of the value of good governance in improving the economy and, ultimately, the lives of Filipinos. nnn

I and my fellow directors of the Philippine Charity Sweepstakes Office (PCSO)—lawyers Mabel Villarica Mamba and Francisco Joaquin III—were in Dipolog City on September 28 to turn over ambulances and Lotto share checks to municipalities there. We gave 15 brand-new ambulances from the PCSO Ambulance Donation Program to Kabasalan in Zamboanga Sibugay; Rizal, Sirawai, Godod, Tampilisan, Polanco, Liloy, Baliguian, Katipunan, President Manuel Roxas and Sergio Osmeña Sr. in Zamboanga del Norte; to Dapitan City, Dipolog City, Labason District Hospital, and Zamboanga del Norte Provincial Health Office. As for the checks, municipalities, cities and provinces that host PCSO Lotto outlets receive a corresponding share from game sales for their social-welfare programs. The PCSO will be holding more ambulance donation, as well as branch opening activities until the end of the year, in line with agency targets and commitments. Atty. Rojas is vice chairman and general manager of the Philippine Charity Sweepstakes Office.

mental fiscal trajectory.” That’s true. But these aren’t reasons to refrain from extending Chapter 9 protections; they’re reasons to undertake reforms in addition to extending them. Others say that Chapter 9 is insufficient because a lot of Puerto Rico’s debt wouldn’t be covered by it. Both that concern and the need for reform have motivated calls for a “financial control board” of the sort that Congress used to sort out the finances of Washington, D.C., in the 1990s. But extending Chapter 9 would give Puerto Rico some relief and provide taxpayers some protection—and Congress could write the law to provide more. Or it could opt for a financial control board, which could be a helpful way of combining reform and a debt restructuring. The main problem with the board idea is political: Congress may not be able to agree on something that ambitious. If it can’t, it should at least allow the courts to relieve some of the debt burden. Creditors, not taxpayers, should take the hit for unwise loans.

opinion@businessmirror.com.ph

Opinion

Lock and load

Free the Fed

BusinessMirror

Atty. Lorna Patajo-Kapunan

legally speaking

s a responsible and registered gun owner, I recognize the practicability and sensibility of owning a gun. Being in the legal profession exposes me and my family to different, unordinary, and sometimes risky, situations. And sometimes, taking extra precautions just doesn’t seem enough especially in these times.

The world has gone mad. Violence has been a news staple of late (apart from the current “AlDub” craze), and there seems to be no quarter given. But while I do recognize the practicality of being armed, I also identify with the concern of allowing people to bear arms, considering that they are being used for the perpetration of crime and also because of the propensity of human reason to falter. The right to bear arms is not a constitutional right in Philippine law. It is only a privilege, a privilege that the governing body needs to further and constantly regulate. And while an argument can be made that Philippine law recognizes the right to protect oneself, one must, likewise, be mindful of the power and responsibilities that come with being given the privilege. The issue is not bestowing upon our citizens the privilege of bearing arms, the issue is how well we can control that privilege. In 2002 the Philippines ranked fifth in the world in crimes committed with firearms, 7,708 to be exact. Currently, the Philippine National Police (PNP) as per the Philippine Star news article on August 3, 20151, reported an alarming nationwide gun-connected crime increase from 2014 by about 46 percent during the first six months of the year. Republic Act (RA) 10591, otherwise known as the “Act Providing for a Comprehensive Law on Firearms and Ammunition and Providing Penalties for Violations Thereof,” is the prevailing regulating act concerning the possession and ownership of firearms. A scrutiny of RA 10591 will impress on the layman that the powers that be have taken drastic steps to regulate firearm possession and ownership. I do wish to call the readers’ attention to the legal implications under RA 10591, instead of focusing on the requirements for acquiring licenses. Prior to the passing of RA 10591, the prevailing law penalizing the illegal possession of firearms was Presidential Decree (PD) 1866, as amended by RA 8294, otherwise known as the Decree Codifying the Laws on Illegal/Unlawful Possession, Manufacturing, Dealing In, Acquisition or Distribution of

Firearms, which was passed by former President Ferdinand Marcos in 1983. Under PD 1866, the unlawful possession of low-power firearms is punishable by prision mayor in its maximum period to reclusion temporal, and a fine of P15,000, provided that no other crime is committed. The said penalty would land you in prison for 10 to 20 years. The providing clause of PD 1866 suggests that one can only be held liable provided no other crime was committed, otherwise, the perpetrator would only be liable for the said crime committed and not for illegal possession as contained in PD 1866. Now, a comparison with RA 10591 will show that the penalty for unlawful possession of a small firearm is meted with a penalty ranging from prision mayor in its medium period only. This penalty is approximately eight to 10 years, without any imposition of a fine. The use of an unlicensed or unregistered firearm in the commission of a crime, however, is considered as an aggravating circumstance, if the crime committed is lower than that provided in RA 10591; and, as an additional penalty if the crime committed is equal to that imposed by RA10591. The revision of the penalty with respect to the use of unlicensed firearms, particularly in connection with its use in the commission of crimes, has been well thought of, and to my mind, has addressed the impotence of PD 1866. I do, however, wish to highlight that the penalties in RA 10591 regarding tampering and carrying firearms without a permit outside the residence, needs to be more stringent in light of the recent increase in crime. The violations for tampering and unauthorized carrying of firearms outside the home only carry with it a penalty of prision correccional, which, depending on the actual period imposed by the judge, may allow the violator to avail of the benefits of probation under PD 968, considering that convicts may seek probation provided that the penalty imposed does not exceed six years. http://www.philstar.com/metro/2015/08/03/1483869/philippinecrime-rate-46

The US still needs 2.7 million jobs

f the US Federal Reserve (the Fed) is looking for reasons to increase interest rates sooner rather than later, it won’t find many in the latest employment numbers. The economy is still millions of jobs short of where it should be. The Labor Department’s employment report for September suggests that turmoil in global financial markets may have taken a toll on the US recovery. Nonfarm employers added an estimated 142,000 jobs, bringing the three-month average to 167,000— the slowest pace of growth since 2012. The separate household survey, which polls more than 100,000 individuals, actually shows a drop in employment: The unemployment rate held steady at 5.1 percent only because the number of people counted in the labor force also declined. Deeper down, the report offers ample evidence of what Fed Chairman Janet Yellen has called “slack” in the labor market. One indicator: The number of people stuck in part-time jobs, or not actively looking for work (and hence not counted as unemployed), remained unusually large by historical standards. If the unemployment rate included those people, it would be more than a percentage point higher. A per-

centage point or two represents a lot of jobs. Accounting for all the people who want full-time work or are likely to rejoin the labor force, it would take about 2.7 million jobs to reduce the unemployment rate to 4.9 percent— Fed officials’ median estimate of full employment, the point beyond which inflation tends to accelerate. The number is down from 4.6 million a year ago, but still too high. There’s also little evidence that demand for labor is giving workers much bargaining power. US auto workers, for example, are struggling to curb the share of lower-paid, entry-level jobs in their industry even as they negotiate raises. Overall, average hourly earnings for private-sector workers stood at $25.09 in September, up just 2.2 percent from a year earlier. In the decade before the 2008 recession, wage growth typically exceeded 3 percent. Although the Fed chose last month to hold its interest-rate target near zero awhile longer, Yellen has said she expects to start removing stimulus before the end of this year. Whether or not the Fed takes the first step soon, the millions of Americans who still need jobs—and the dearth of inflationary pressures—offer reason to proceed with caution. Bloomberg View

Paul Donovan

he US Federal Reserve (the Fed) conspicuously failed to raise interest rates in September. It did everything else it was supposed to do. The Fed signaled that quantitative policy would not change. The Fed guided that future rate changes would be slower than normal. It is just that somewhere in the process the Fed forgot to raise interest rates. The failure to raise rates was bad enough, but the language used to communicate the “logic” of its decision was even more troubling. The Fed implied that market volatility had helped to prevent a rate increase. This is a frightening reason, implying as it does that the Fed is now held hostage by the financial markets. If we take this to the extreme, the idea that an equity trader in Shanghai could press the wrong button on their computer and as a result of the ensuing market volatility could cause economists to have to change their forecasts for US interest rates inverts both logic and the natural order of things. Markets should not dictate to economists, ever. Economists should lead, and markets should follow at a respectful, reverential distance. Thankfully a number of Fed officials have subsequently come out with comments that suggest they are at least attempting to resist the thrall of the markets.

Eventually even Fed Chairman Janet Yellen admitted that she too wanted to raise rates this year. Interestingly, her call for higher rates came in the middle of a speech about inflation. Yellen’s comments on inflation were not brief. Economists were treated to an erudite discourse on inflation. Unfortunately most of this was lost in the media coverage. The modern trend for “sound-bite economics” tends to result in superficial analysis. Reporting of the Fed chairman’s comments focused on her support for a rate increase this year; the inflation comments were generally overlooked. This is a pity, because what Yellen was talking about matters. Yellen seems convinced that inflation will continue to move toward the Fed’s target of 2 percent. That matters to markets because the Fed will raise rates as long as it believes inflation is heading toward its target—it does not have to be at its target. Yellen suggested that

Monday, October 5, 2015 A11

short-term noise in import prices should be ignored. That matters to markets because it downplays the role of the dollar and foreign markets in determining US monetary and quantitative policies. Finally, Yellen suggested that the recent dip in inflation below the 2-percent target of the Fed was temporary. This matters to markets because it suggests the Fed is not concerned about deflation risks. The next stage in the US economic cycle is for headline inflation to leap up. This is a global issue. The impact of oil prices has been to reduce headline inflation in most major economies since last October. That impact is going to fade, and fade fast, from the headline consumer price data. Essentially headline inflation rates are likely to converge with core inflation rates (which exclude some energy prices) as the oil effect disappears. This implies that headline inflation will rise by 0.8 percent or more in most major economies. Indeed, core inflation could also rise, because core inflation rates do include some energy (it is just buried away in things like air fares and transport costs). Although most investors know that the oil effect is going to disappear, the fact that each month’s headline inflation number comes in low does have an impact of [on?] market psychology. Investors still seem to have a disinflation bias to their thinking. However, as headline inflation rates suddenly jump up, between October and January, this disinflation bias should fade away. While it

seems unlikely that investors will start to look for high inflation, and while it is unlikely that inflation is likely to rise too rapidly, a US headline inflation number that is closer to 2 percent is likely to mean that investors stop looking for downside risks to inflation when data is released or policy-makers speak. This move will also give the Fed the opportunity to free itself from the perceived influence of financial markets, and allow it to exert its independence properly. Although the rise in inflation is very predictable, it will allow Yellen to point to a near 2-percent inflation reality and say “that is why we are raising interest rates”. This carries more conviction than Yellen pointing to a forecast of rising inflation as the justification for tightening. I believe the US Federal Reserve erred in its September policy meeting, in particular in seeming to give financial markets power over its decisions. However, the coming increase in inflation and the reversal of markets’ disinflation psychology will restore the Fed’s freedom of action. The coming inflation increase means now is an excellent time to join the campaign. It is time to #FreeTheFed. Paul Donovan’s latest book The Truth About Inflation was published by Routledge in April 2015. Visit www.ubs.com/pauldonovan for more research. Follow Paul Donovan on Linked In https://www linkedin.com/today author/27305985?trk=prof-sm

Expanding the horizons of the accountant Joel L. Tan-Torres

DEBIT CREDIT

he Board of Accountancy (BOA), under the chairmanship of Hon. Joel Tan Torres, has adopted “Expanding Horizons” as its theme to engage all stakeholders in crafting an appropriate program of education and continuing professional development for the accountants. We believe that the current developments in the Asean region and in our own country have raised the need for greater competitiveness and collaboration. There is also clamor for good governance, transparency and accountability. The accountant of today has to be equipped with the right mind-set and the proper tools for him or her to be a relevant force in a dynamic and challenging business environment. Our chairman has presented a BOA road map that lists down certain projects—strategies, if you will, that are important to the development of the accountancy profession in all sectors— public practice, commerce and industry, education, and government. The proposed projects/strategies in the education sector address four categories, which I have freely labeled: Blueprint (for the curriculum), Production (for the twin factors of accounting school and accounting teachers), Product (for the student) and Certification (for the Certified Public Accountant, or CPA, licensure examination). In the education sector, it is worth defining the goal and objective in terms of the desired product that comes out of our accountancy program. I believe we should graduate a competent, ethically grounded and globally competitive accounting professional. Competence is something that is basic for a professional. However, there could be a mismatch between what we think he should be good at versus what the business community demands. Ethical behavior is the buzzword of today given all the scams and scandals in our society. But how do we inculcate ethical behavior so that even in the face of temptation our professionals are expected to do what is right? With the advent of a borderless economy where goods and services are beginning to enjoy free flow across international boundaries such as what the Asean integration is envisioned to bring about, how do we stand in the face of such competition? Are our graduates prepared for the competition to follow? Or do we resort to protective mechanisms to shield our future professionals? I think we have to engage in a dialogue on what we want the product of our accountancy program will be and the kind of accountant he will become.

Blueprint strategy The first project or strategy indicated

in the road map concerns the Blueprint, which is a review of the accounting curriculum. For comparison, the typical accountancy curriculum in the US has 120 unit credits. But 150 unit credits are needed for graduates to qualify for the American

Institute of Certified Public Accountants exams. Our present accountancy

curriculum features 210 units as a minimum requirement but some schools offer programs that reach up to 265 units. As of this writing the Commission on Higher Education’s Technical Council has crafted a proposed accountancy curriculum that has 165 units since some business subjects have been transferred to the senior high school under the K to 12 Program.

Production strategies The first Production strategy is conducting regular assessments of accounting schools. We in the BOA have an obligation to regulate the conduct and to monitor the performance of accounting schools. The yardstick that we have been using all these years to gauge the performance of accounting schools is their passing rate in the CPA licensure examination. The CPA license has been the accepted mark of quality. However, given a scenario where not all accountants go for public practice, are there other criteria that can be considered to gauge the performance of accounting schools? How about the number of graduates that land jobs in other sectors of accountancy services? What positions of responsibility are they holding? The second Production strategy is the posting of performance metrics of accounting schools. A public posting is designed to inform the hopeful student which school would be the best for him or her. But how will academe react to this move? What performance metrics would be relevant? The third Production strategy is the accreditation of accounting teachers. How do we enhance the accreditation

of accounting teachers? What criteria should be followed? What kind of support is needed for accreditation? The value of having good accounting teachers cannot be underestimated because it is a key factor in the performance of students.

Production strategies The first Product strategy is instilling in our accounting students the skills and values of ethical conduct, analytical thinking, effective communication and use of technology. While this strategy addresses the student, his growth and development is, in fact, a function of the curriculum and the teacher. Ethical conduct normally has its roots in kindergarten and in the elementary grades. We grew up with such slogans as “Honesty is the best policy” and “Cleanliness is next to Godliness.” These values are normally carried over into our later years. Nowadays, we talk a lot about good governance and accountability. But there may be a “disconnect” between what we say and what we do. So how do we train our future accountants to behave ethically? How are these ethical values reinforced at the undergraduate level? Critical thinking is another desirable skill. While the accountancy profession lives by standards, there are gray areas that beg for critical thinking and interpretation. How do we ensure that our future accountants are equipped with the skill to analyze something objectively and come up with a reasonable response? Good communication skills, both written and oral, are important in our profession. English is still the business language spoken and some schools have put up “English-only” zones in their campuses to force their students to speak the language in clear and grammatically correct sentences. Likewise, English composition is a desirable output and school curricula still retain courses on this subject. But sometimes the intended communication skill is not apparent in the workplace when the accountant finds himself preparing accounting reports. How do we train our accounting students to speak and write effectively in English, our second language? Finally, on the technology aspect, it may be a crying need now for the future accountant to have a practical or working knowledge of specific accounting software products and solutions, which are regularly being used by commerce and industry. Also, knowledge in auditing software might be helpful especially when the future accountant chooses a career in public practice. Perhaps, it may be timely for schools to include these software products and solutions in their curriculum or tie up with independent training schools to provide this working knowledge. Certainly, the future job prospects would be better if they are already skilled in the use

of accounting software. The next strategic area is the engagement of students in accountancy-related issues. The Junior Philippine Institute of Accountants student organization appears to be a logical vehicle for the advancement of accounting knowledge and practices to benefit future accountants. Perhaps, the most important aspect of student engagement should be his apprenticeship in an accredited institution. How should this apprenticeship be institutionalized? How should commerce and industry be engaged to provide this valuable experience? In some professions, a two-year work experience is required to be able to take a licensure examination. Perhaps in the accounting curriculum leading to public practice, the final year may include a more lengthy on-the-job training to complement the review for the licensure examination.

Certification strategies The formulation of the CPA licensure examination and its administration has been a big part of the job of the BOA. The strategies proposed are the regular review of the syllabus and the subjects to be included in the examination, and the enhancement of the administration of the examination. Understandably, many schools are dependent on the CPA licensure examination results to bolster their credibility as a learning institution. This fixation has led to scandals in the past which hopefully has been eliminated by this time with more controls exercised at the Professional Regulation Commission. However, there are still ways of improving the conduct of the licensure examination in terms of content, technology and administration.

Conclusion The current BOA has adopted a consultative stance in its approach to educating the future accountant. There may be a need to explore new methods of learning accountancy given the technological developments and requirements of business enterprises. The old ways may no longer suffice. The accountancy profession may need to evolve from its traditional role of financial information processing and reporting into one that is more responsive to addressing the wider functional demands of business. We encourage all accountants in the education sector to partner with us in addressing the concerns that face us as we endeavor to raise the bar in response to the evolving challenges to the profession. Eliseo A. Aurellado, MBA, PhD is a CPA who is the former head of finance faculty at the Ateneo Graduate School of Business. He is the vice chairman of the board and COO of Metro Stonerich Corp., a Triple A, ISO-certified construction company. He can be reached through his e-mail address: taxmanely@yahoo.com.

2nd Front Page BusinessMirror

A12 Monday, October 5, 2015

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Airport delays won’t keep Delta out of Manila By Ma. Stella F. Arnaldo

Special to the BusinessMirror

elta Air Lines will be looking to increase its market share in Manila and focus on raising its competitive edge as a United States carrier. The airline is also seeing an increasing number of foreign businessmen with the continuing growth in the Philippine economy. Newly appointed Delta Country Manager-Philippines Patricia Celis said she will “focus on leveraging strategic opportunities to improve the airline’s competitive position in this important market.” She will also be responsible in managing overall sales activities, administration and industry affairs in the Philippines, a news statement said. She told the BusinessMirror that a majority of the carrier’s passengers are “Filipino-Americans traveling to the Philippines visiting friends and relatives.” But she added, “We do have an increasing number of corporate passengers as the global companies set up their

offices in the country.” And while there were “no plans to increase frequencies during the peak holiday season to the Philippines this year…we are expecting very high load factors during this season due to balikbayan traffic.” Delta flies daily to Narita, Japan, with continuing services to seven mainland gateways—Boston, Detroit, Los Angeles, Minneapolis/ Saint Paul, New York-JFK, New YorkLaGuardia and Salt Lake City. It operates a 747-400 aircraft that can accommodate 376 passengers. The carrier continues to fly with an “average load factor of over 85 percent,” which means 85 percent of the seats available for ticketing are usually booked and sold. She did not say how many passengers were carried by Delta last year. Celis also hailed the govern-

ment’s plans to build a new passenger terminal for budget carriers at the Ninoy Aquino International Airport (Naia), as well as studies for a new international airport to replace the Manila airport in the future. “It’s great to see that, the government is looking at resolving the Naia congestion. Hopefully, the government does not forget to look into proper road infrastructure and transportation facilities to make it convenient for passengers.” She confessed that, like other carriers, Delta is also affected by the traffic congestion at the Naia. She said the carrier’s “airport customer service team works hard to make sure that the door to the aircraft closes five minutes prior to departure. While we usually make our D0 goal, in fact [it was] 100 percent for September 2015, the aircraft sometimes sits at the gate or taxi way up to 20 minutes for clearance to push back or take off.” But “on arrivals, we have experienced circling the area three times before a landing clearance is secured,” Celis said. D0 (or D:00) is the time departure on the tickets, wherein the pilot releases the parking brake on the plane. This is what US Department of Transportation uses for on-time performance ratings of airlines. During the open forum at the

Philippine Economic Briefing of government economic managers on September 30, Transportation Undersecretary Rene Limcaoco said there was a “definite plan to move the airport” to a site that will service greater Metro Manila, as the existing Naia airport is only capable to handle flights up to 2023.” The government will also support the expansion of the Clark International Airport in Pampanga. He added that three sites “[will] be proposed to the government and given in November. The final site will be determined this year.” The Department of Transportation and Communications (DOTC) is working with the Japan International Cooperation Agency (Jica) “to identify the sites.” Pressed for details, Transportation Secretary Joseph Emilio A. Abaya said in a text message: “The Jica location will be finalized in February or March next year. The three sites being referred to are Sangley A, Sangley B and Central Manila Bay.” Abaya added: “These are all offshore proposals, i.e., reclamation, because no way can anyone purchase the required land for a modern international airport in the site convenient and accessible to passengers and ideal for design requirements. [The Central Manila Bay site] is further out from the

coasts so it won’t affect residential areas along reclaimed areas.” In previous interviews with the media, the DOTC chief has been quoted as saying that Sangley Point was the recommended site for the proposed new airport, and Jica was scheduled to give the agency the feasibility study for said location in June. Ideally, the new airport should be operational by 2025. The Naia currently handles 34 million passengers, far exceeding its original capacity of 25 million. And with only two runways, domestic and international carriers continue to experience flight delays. This is one of the reasons the Aquino administration continues to delay its ratification of the Asean open-skies policy for capital cities, moving to protect Manila from more international carriers. It is the only country that has not signed said Protocols 5 and 6 of the 2009 Multilateral Agreement on Air Services that would give Asean airlines unlimited third, fourth and fifth freedom rights to operate between capital cities. (See “Asean open skies will go on sans Manila OK” in the BusinessMirror, September 18, 2015.) But Celis said the Philippines “should welcome the opportunity to open up the secondary airports in support of local tourism and

economic growth of other cities. Philippine local carriers have been adding new destinations to their portfolio and, given the current situation with fuel, should be able to take advantage of this.” Celis’s appointment as country manager-Philippines sales and affairs took effect on October 1. In a news statement, Vinay Dube, Delta senior vice president for Asia Pacific, said: “Delta has proudly served the Philippines for over 65 years. Appointing a talented local leader is consistent with Delta’s continued long-term commitment to the Philippines. We are confident that Patricia will further grow Delta’s presence in the market.” She started her career in the airline industry in 1997 as marketing support for American Airlines in the Philippines. She joined Northwest Airlines in 2003 as a sales and marketing manager for the Philippines. Since Northwest’s merger with Delta in 2008, Celis had increasing responsibility, including overseeing Guam sales team. She also successfully supported Delta’s expansion of a new nonstop service in Sydney including closely working with joint partner Virgin Australia to enhance product awareness in Australia. Most recently she oversaw the Philippines, Australia and Micronesia as a sales and marketing manager.