Businessmirror september 06, 2015 by BusinessMirror

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A broader look at today’s business

n Sunday, September 6, 2015 Vol. 10 No. 332

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IMF says economy still ‘favorable’

week ahead

ECONOMIC DATA PREVIEW Peso

n Previous week: The local currency traded lower during the shortened week. On Tuesday the peso hit 46.685 to a dollar followed by the 46.705-to-a-dollar value on Wednesday. The peso then depreciated slightly to 46.768 to a dollar on Thursday, and ended the week at 46.73 to a dollar. The total traded volume was at $1.97 billion, weaker compared to the $3.61 billion in the previous week. The average value of the peso is at 46.722 to a dollar during the week. n Week ahead: The Bank of the Philippine Islands (BPI) told its clients on Friday that the peso will likely trade with a downward bias, as investors continue to factor in the inflation print and as investors continue to react to data coming from the US economy. September 7, Monday

August GIR

n July GIR: The country’s gross domestic product was slightly chipped in July this year, as the gold holdings of the Bangko Sentral declined in value during the period. In particular, the gross internatinal reserves hit $80.43 billion during the month. At this level, it is enough to cover 10.6 months’ worth of imports of goods and payments of services, and equivalent to 6.3 times the Philippines’s short-term debt based on original maturity and 4.5 times based on residual maturity. n August GIR: In a recent interview, central bank Deputy Governor for the Monetary Stability Sector Diwa C. Guinigundo maintained that the GIR of the country would remain ample to

By Bianca Cuaresma

MID relatively weaker growth, falling inflation and global volatilities affecting the local financial market, the Philippine economy is still deemed by the International Monetary Fund (IMF) as “favorable” at the time being—consequently lauding economic managers on their successful handling of the economy. In a recent statement from the IMF at the conclusion of the 2015 Article IV Consultation with the Philippines, the multinational monetary authority said that the country is still growing “broadly at potential,” despite the growth falling in the 5-percent territory in the first months of the year.

“The outlook for the Philippine economy remains favorable, despite uneven and generally weaker global growth prospects,” the IMF said. “As the economy is growing broadly at potential, there is no evidence of price or wage pressures See “IMF,” A6

CHEF CURRY IN TOWN Wearing a “Thrilla in Manila” T-shirt, Stephen Curry gestures, as he fields questions from reporters at the Mall of Asia

Arena in Pasay City. The Most Valuable Player guard from last season’s National Basketball Association champion Golden State Warriors is in the Philippines to take part in the Asian tour “The UA Roadshow Featuring Steph Curry.” Curry will also visit Tokyo, Beijing, Chongqing and Shanghai in China. nonie reyes

Mixed signals in U.S. Traffic situation in key PHL employment report cities, provinces worries MAP W T ASHINGTON—Employers added a disappointing 173,000 jobs in August but the blow was softened by the equally unexpected drop of the unemployment rate to 5.1 percent. That is the best reading on unemployment since March 2008, but there were plenty of mixed signals in the report released on Friday by the Bureau of Labor Statistics. Employment numbers for June and July were revised up by a combined 44,000, after additional data came in. Those were already strong months, so it raises the likelihood that August’s first take might not stand. “The job market is rocking and rolling,” said Mark Zandi, chief economist for forecaster Moody’s Analytics. “Ignore the weak job gain in August; it will be revised substantially higher in coming months. The economy is generating over 200,000 jobs per month.” Full-time employment, as measured in the survey of households, was 122 million in August. That is a record, above the previous peak in November 2007 of 121.9 million. The two-tenths of a percentagepoint drop in the unemployment rate is also a good sign. Continued on A6

By Lorenz S. Marasigan

HE government must start solving the traffic situation in key cities and provinces outside Metro Manila before it gets worse. Eduardo H. Yap, chairman of the Management Association of the Philippines’s (MAP) Traffic, Transportation and Infrastructure Committee, urged President Aquino to nip in the bud the relatively lighter congestion on roads outside the capital.

This, Yap said, will cause the government less headaches and fewer problems to manage. Yap said Mr. Aquino should appoint a traffic czar to solve the traffic congestion not just in Metro Manila, but all over the country. To do this, he said, the President must issue an executive order creating a traffic manager, whose office will serve as the “nerve center” of all public and private efforts in managing and solving the traffic-management problems throughout the archipelago, where signs of traffic congestion are also beginning to appear and begging for solutions.

“We are seeing traffic congestion in just about everywhere— even in Cebu, Tarlac, Pangasinan, Baguio, Davao and Zamboanga. Traffic is not just a problem of residents in Metro Manila, but is beginning to affect even those cities in the provinces. Let’s nip this in the bud as early as now,” Yap said. Metro Manila’s neighboring provinces and cities are said to be losing P1 billion per day in productivity costs due to the congestion. The metropolis alone loses P2.4 billion daily due to the same problem. Yap said the government must have a clear road map in Continued on A6

Market continues to be cautious, PSEi seen to trade between 6,850 and 7,150

See “Outlook,” A6

PESO exchange rates n US 46.7660

By Genivi Factao

HE Philippine Stock Exchange index (PSEi) is expected to trade between 6,850 and 7,150, with local export figures and further developments in the US being the main catalysts. Bank of the Philippine Islands (BPI) Asset Management analysts said they expect the market to continue to be cautious and the sentiment-driven trading ahead of

the US labor-data releases and the September Federal Open Market Committee meeting. Week-on-week, the PSEi lost 47.03 points, or -0.66 percent, ending the week at 7,051.78. Foreigners were net sellers at P 2.23 billion or $104.15 million. Year-to-date, the net foreign funds are now at -$215 million. Last week the index generally traded within a tight range, as investors positioned ahead of the inflation print and ahead of market-moving

economic-data releases globally. In August the consumer price index stood at 0.6 percent, which is the lowest level in two decades. Market reaction to the inflation figure was subdued, as investors were mostly on the sidelines ahead of the US nonfarm-payrolls report. Regina Capital Development Corp. said the index needs to stay above 6,950, in order to establish a bullish higher low base and have a better chance of breaking 7,110.

Doing so will put prices in a shortterm upswing and, ultimately, retest its breakdown point at 7,272—but meeting these conditions will not reverse the index’s primary trend, as hitting 7,272 will still be a lower high compared to July highs. “We expect a lot of selling pressure near this resistance. On the other hand, failure to hold 6,950 will trigger corrections back to 61.8 percent Fibonacci [6,636] and put signals back in the bearish territory.

A cautious position is still raised on issues trading above long-term averages and ‘sell on rallies’ on below these averages,” Regina Capital Head of Business Development Stock analyst Luis Limlingan said. Meanwhile, BPI analysts expect the peso to trade range-bound with a downward bias, as investors continue to factor in the inflation print and as investors react to US nonfarm-payroll print to be released over the weekend.

n japan 0.3901 n UK 71.3509 n HK 6.0342 n CHINA 7.3480 n singapore 33.0105 n australia 32.8344 n EU 52.0739 n SAUDI arabia 12.4702 Source: BSP (4 September 2015)

NewsSunday BusinessMirror

A2 Sunday, September 6, 2015 • Editor: Vittorio V. Vitug

Logistics industry weakening–poll

By Roderick L. Abad

HE logistics industry in three regions—Asia, America and Europe—is having a hard time now for it to repeat last year’s positive performance. In August the Stifel Logistics Confidence Index fell to 54.1 points, thus, making it the third time for the decrease this year since June and the lowest since September 2013, on the back of fierce competition, volatility and overcapacity. At 51.3 points, the Logistics Situation Index also dropped, yet, slightly by 1.8 points. Even though the current situation in sea freight that saw improvements over July’s score was vital in easing the decline and gave a bright spot in a month, it remains a concern overall. What is more worrying is the Logistics Expectations Index, which fell

by three points to 56.9—the lowest since January 2013. Citing the volume statistics that showed a 3.5-percent hike from January to June of this year compared to the same period last year, International Air Transport Association (IATA) Director General and CEO Tony Tyler said that it has been “a disappointing first half of 2015, especially considering the strong finish to 2014.” Hence, the falling six-month outlook suggests it’s unlikely to see a similarly strong finish to 2015. According to IATA, airfreight volumes in June continued a slow

briefs

‘responsible small-scale mining possible’

ARTISANAL small-scale gold mining in the Philippines can be both profitable and less harmful to people and environment without mercury, says the group BAN Toxics (BT). In fact, with support of local governments and proper training, small-scale artisanal gold-mining industry can flourish, generate gainful employment and contribute to economic development, the group said. This, as Ban Toxics hailed the 2015 Galing Pook Award conferred on the Province of South Cotabato for its program on small-scale mining called “Minahang Bayanihan,” which helped address various issues and concerns confronting the province’s small-scale mining sector. “South Cotabato’s achievement is a testament that positive reinforcement can lead to a responsible small-scale mining industry. The province is a shining example of a government that is responsive to the needs of its constituents,” Eve Cubelo, BT artisanal and small-scale mining (ASGM) program manager, said in a statement. The program promotes responsible mining practices, such as the issuance of a miner’s identification (ID) to all small-scale miners and workers after they have undergone a series of seminars and trainings that include basic first aid and safety; disaster risk reduction/climate change adaptations; solid waste management; and mercury-free gold processing provided by BT. Jonathan L. Mayuga

solon: probe car-smuggling report LAKAS Rep. Magtanggol T. Gunigundo I of Valenzuela City has called for a congressional inquiry into the reported smuggling of 14 luxury cars from the United Arab Emirates, Japan and Hong Kong at the Batangas port. In House Resolution 2269, Gunigundo asked the House Committee on Ways and Means to investigate certain importers’ modus operandi of undervaluing luxury cars by declaring them as vehicles of lower-priced models or variants. The call for investigation was prompted by the Bureau of Customs’ (BOC) seizure of a shipment of luxury cars at the Asian Terminal Container Port in Batangas on July 24. Gunigundo said that the consignee could be in cahoots with certain BOC officials. The vehicles were consigned to Monacat Trading in Biñan, Laguna. “There are car importers who misdeclare or undervalue their importations because of the costly duties and taxes attached to cars being imported,” Gunigundo said. Gunigundo said the importer of these luxury vehicles was trying to cheat the government. “The modus operandi is to undervalue the cars by declaring lower-model or lowervariant names,” he said. PNA

cebu launches ‘exquisitely filipino’ exhibit CEBU CITY—The Cebu provincial government, in partnership with SM City Cebu and the Department of Trade and Industry launched on Friday Exquisitely Filipino trade exhibit aimed at introducing Cebu-made products to the delegates of the AsiaPacific Cooperation (Apec) who are meeting in Cebu. “I think we chose this occasion to launch Exquisitely Filipino to dramatize the fact that in Apec, we do work on integration and connectivity of economies, states and businesses,” Senior Officials’ Meeting Chairman Laura del Rosario said in her welcome remarks. Del Rosario said art and religion have been part of daily lives of the Cebuanos and crafts featured in the exhibit manifest these distinct Cebuano culture. “While art and religion played a role in the past, they now crossed over to the economic realm,” she said. “These products are not merely a demonstration of the Filipino skill and artistry, it has become a source of living for some families, a realization of an artist's dream to be recognized and the fruition of small medium enterprises’ efforts to be part of the global market,” she noted. PNA

pace of expansion as weak global growth and decelerating trade activity had volumes rose merely at a rate of 1.2 percent—just enough to repel claims of stagnation. This dragged down the Logistics Situation Index for airfreight to its lowest this year, falling 4.1 points to 51.3. It is noted that lanes out of Europe, among the three regions, were the most poor to perform, with that of Europe to Asia dropping by 7.2 points to 48.4, while Europe to the United States shed 5.6 points to 57.8. A loss of 2.4 points led the US to Europe lane to go back under the neutral 50 mark to 48.3, as that of Asia to Europe had a drop of 1.3 points to 50.6. Projections are disappointing as Logistics Expectation Index for airfreight lost 3.2 points to 57.3. The biggest decline was in the Asia to Europe lane, down 4.5 points to 58.2, followed by Europe to Asia lane, dropping by 3.7 points to a sixmonth low of 55.8. Shedding 3.1 points, the US to Europe lane decreased to 55.1 in

August, while the reverse Europe to US lane fell 1.2 points to 60.1 for the year—the lowest mark since October 2014—there’s still probably some optimism on its year-on-year performance, which put it 7.7 points ahead of August 2014. Contrary to airfreight's underwhelming performance, Logistics Situation Index for sea freight in August managed to be on the positive track with a 0.5-point rise driven by growths in the three of the four lanes reviewed. The best performer was the Asia to Europe lane that increased by 3.4 points to 56.4, seconded by the US to Europe lane that surged by three points to 47.8. The Europe to Asia lane added 0.9 points to hit the 51 mark, and a second consecutive month above the neutral 50 level. Still facing the industry’s challenging situation, the Europe to US lane declined sharply, decreasing by 5.4 points to 48.5 and indicating a contraction for the first time since March 2014.The strength of the greenbacks had exports from

North Europe to North America balloon by 8.4 percent over the first five months of 2015. Significant capacity increases on the lane during that period, nevertheless, are threatening to outstrip demand. Across the board, declines during the month of August happened again in the Logistics Expectation Index for sea freight, as 2.7 points were deducted to score 56.4. A fall of 3.4 points to 58.1 was recorded in the index for the Europe to US lane, thus, leaving a concern on overcapacity for the remaining months of this year. Also scoring 58.1, the Asia to Europe lane fell short of 3.3 points last month. The US to Europe lane shed three points to 51.1, while a drop of 1.1 point resulted a finish of 57.8 for the Europe to Asia lane. The Stifel Logistics Confidence Index survey in August asked the respondents about the proportion of the customs clearance and consulting-trade management services markets that were controlled by freight forwarders.

D.O.L.E. told to explain P832.2-M ‘questionable’ funding in 2016 budget By Jovee Marie N. dela Cruz

PA R T Y- L I S T l a w m a k e r o v e r the weekend asked the Depar tment of Labor and Employ ment (Dole) to ex plain the “questionable” f unding of P832.2 mi l lion in its 2016 budget proposa l. Par t y-l ist Rep. A ntonio Tinio of ACT Teachers, during the recent House Committee on Appropriations budget deliberations, told L abor Secretar y Rosalinda D. Baldoz to account for an P832.2-million discrepancy in her department’s 2016 budget proposal. Tinio said DOLE Region 4B (Mimaropa) would receive the highest allocation for maintenance and other operating expenses (MOOE) among all regions, with a budget of P952.8 million. Mimaropa is the region composed of Mindoro, Marinduque, Romblon, and Palawan. Mindoro is divided into the provinces of Oriental Mindoro and Occidental Mindoro. “This is highly improbable, considering that Mimaropa is one of the smallest, least populated regions in the country. Yet, Dole is asking for a budget that’s nearly double that of the National Capital Region,” the lawmaker said. Tinio said, citing the allocations for each program of the Dole, Mimaropa would only be receiving a total of P120.5 million, “Hence, there’s an unexplained discrepancy of P832.295 million in the Dole budget proposal.” “Dole needs to explain this significant discrepancy as soon as possible, preferably before the budget reaches the plenary,” Tinio said. He said that the amount unaccounted for represents 16 percent of the total MOOE of the agency. “If Dole cannot explain, then its budget proposal has been padded significantly and obviously cannot be approved,” Tinio said. For her part, Baldoz asked the Committee on Appropriations for more time to submit the agency’s answer. In a related development, Party-list Rep. Rep. Carlos Zarate of Bayan Muna said that the insufficiently funded Department for Science and Technology (DOST) could get more funds if the P30 billion funds allotted for the Risk Management Program is scrapped and deleted from the proposed P3.002 trillion 2016 budget.

Water-conservation drive A woman passes by a mural sending a clear message to all passersby to save

water amid persistent reports that water concessionaires Manila Water and Maynilad are reportedly set to curtail watersupply service in various parts of Metro Manila due to El Niño, which is expected to last until next June 2016. ALYSA SALEN

“In the first place, the Risk Management Program should be scrapped because it is only used by the government to pander big private contractors and concessionaires through the so-called sovereign guarantee pledges. These billions should be used instead to pave the way for our country to develop our science and technological sector; for more research and development programs,” Zarate said. During the recent budget hearing at the House of Representatives, Zarate questioned the DOST on the state of basic research and innovations to improve agricultural and food production in the country. Science Secretary Mario G. Montejo claimed that its research and development budget needs an additional P5 billion for 2016, but it was not approved by the Department of Budget and Management. Moreover, Zarate said that there is a lack of basic research to improve food production, which should have been the focus of the department. “For example, biotechnology was the among the core programs of the DOST in the past. Rightly so, because food security and agricultural productivity to help farmers must be among the government’s top concerns. However, we are lagging behind other Asian countries in food production and continue to import our prime staple, rice,” he added.

Zarate also said that the low-value added manufacturing that is on top of our exports in recent years undermines a wider development for our tech industry. “We are manufacturing parts, such as electronic integrated circuits and semiconductor devices, and not end products, such as machines and computers. In other words, it is our cheap labor that is our capital in the industry and not our capability to produce hi-tech machinery. This is a deep-seated problem that the agency must address,” Zarate said. According to the lawmaker, the country’s lack of a national industrialization plan is at the base of our backwardness in science and technology. “A plan for national industrialization, or a long-term development plan, which will improve industries, such as agriculture and manufacturing, is nonexistent in our country. This will keep us underdeveloped, backward and our technology medieval,” Zarate added. He also said that scientists and technologists are leaving the country because of the lack opportunities. “Some of the best minds in our nation, our scientists and engineers, are leaving for opportunities abroad because there are no industries in the country that could provide spaces and incentives for their creativity and inventiveness,” Zarate added.

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Lawmaker hits Mar, Dinky over ESA fund

ARTY-LIST Rep. Fernando Hicap of Anakpawis assailed Interior Secretary Manuel Roxas II and Social Welfare Secretary Dinky Soliman in connection with the controversies hounding the release of the Emergency Shelter Assistance (ESA) fund for survivors of Supertyphoon Yolanda (international code name Haiyan). Hicap said Roxas, the Liberal Party’s presidential bet in the 2016 election, is avoiding questions on the status of ESA, one of the many postYolanda rehabilitations response of the government. Under ESA, a family whose house had been totally damaged will receive P30,000, while P10,000 is given for partially damaged houses. The ESA program is implemented by the Department of Social Welfare and Development (DSWD) in coordination with local governments. “Roxas should answer head on the issues surrounding the implementation and distribution of the ESA. He cannot just simply shrug off the problems of the ESA distribution because the local government units play half in its implementation along with the DSWD. Evading a legitimate query, basically, is like abandoning state responsibility to all victims-survivors of Yolanda” Hicap said. He said the Anakpawis party-list group continues to receive reports from local organizations in Yolandaaffected areas from Eastern and Central Visayas, Iloilo and some parts of Panay Islands, complaining against “kase-kase” scheme. Under the scheme, Hicap said financiers get 16 percent of what the ESA beneficiaries will receive. “There are also reports that loan sharks are directly claiming the ESA from the DSWD regional officers,” he added. Hicap said Roxas should look into the complaints, as well as the practice of involving local governments that prey on typhoon victims. Meanwhile, Hicap slammed the DSWD for allegedly concealing the real status of the ESA implementation. He cited that in the National Disaster Risk Reduction Management Council web site, as of April 2014, Yolanda-damaged houses totaled at 1.1 million—with 551,000 totally damaged and 580,400 partially damaged. However, Hicap noted that under the DSWD Memo Circular 24, the total number of partially damaged houses was only 493,912, while totally damaged houses were listed at 518, 878. The Memo Circular 24 is the DSWD scheme designed to set requirements in regards with the ESA distribution. The memo, he said, received brickbats for issuing unjust preconditions. Under the memorandum, beneficiaries can only access the shelter aid by having a DSWD’s disaster family access card, did not receive any aid from nongovernment organizations, those who live in government declared safe zones, government and private workers receiving monthly salary of less than P15,000 a month and contractual government employees with no housing loans from the government and private groups. Jonathan L. Mayuga

Legislators dare LP to reveal full survey results

EVERAL lawmakers over the weekend challenged the ruling Liberal Party (LP) to reveal the complete results of the survey it commissioned for possible 2016 presidential candidates. Party-list Rep. Silvestre Bello of 1-BAP expressed doubts over the LP’s survey for Interior Secretary Manuel Roxas II and Vice President Jejomar Binay. On Wednesday LP Rep. Edgar Erice of Caloocan said that Roxas topped an LP-commissioned survey on the voter’s preference for president in 2016.

Erice said the survey, which has 1,200 respondents nationwide, was conducted only between Roxas and Binay, as the two were the only candidates, so far, who have declared their presidential plans. He said Roxas got 53 percent while Binay had 37 percent. Ten percent remained undecided. Moreover, Bello, a senior member of the House minority bloc, said that he believes that there was no survey at all. “I don’t think there was a survey. The spin was intended to discourage Sen. Grace Poe from running for

president,” Bello said. Nationalist People's Coalition Rep. Sherwin Gatchalian of Valenzuela said that LP should release the complete results of its survey. “In the name of transparency. They should release the results,” Gatchalian said. For House Speaker Feliciano Belmonte Jr., LP vice chairman, “I want to see the big picture when probables are in. This obviously shows that Mar leads Binay on a one on one.” Party-list Reps. Antonio Tinio of Al-

liance of Concerned Teachers, Joselito Atienza of Buhay Hayaang Yumabong and Terry Ridon of Kabataan said that the LP should be transparent. “In the interest of greater transparency and full disclosure, all parties, including the LP, should name the survey firms from whom they source their data so that the public can make a more informed judgment on their claims. Otherwise, the findings should be dismissed outright as mere political spin and manipulation,” Tinio said. Jovee Marie N. dela Cruz

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

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Meralco launches P40-M control center

HE Manila Electric Co. (Meralco) recently unveiled its P40-million System Control Center (SCC), which is part of the company’s Advanced Distribution Management System (ADMS) earlier approved by the Energy Regulatory Commission. At the launching of Meralco’s state-of-the-art SCC head Ronnie Aperocho said the system enables the company to respond faster to any power-related problems detected by the system. Aperocho, who is also Meralco’s first vice president, said the SCC offers real-time system visibility to improve situational awareness and faster turnaround time of outage resolution. The large multiple displays in a single-output platform, likewise, “accelerates operational decision-making.” “Through the smart meters and total visibility at our system-control center, even before the customer would call us, we

already deployed our crew to fix the problem. It’s part of the proactive service that we would provide our customers,” Aperocho said. The new system will also allow Meralco to immediately and easily identify problem areas. It also provides for possible solutions to the outage problem. “The good thing about it is we provide the intelligence to the system, when a particular segment of our system is affected, readily, we can isolate that system and restore power to unaffected portion of the circuit,” he said. Meralco’s ADMS replaced its obsolete Operating Trouble Management System (OTMS), which was commissioned in 1998 when the company had less than 3 million customers. Meralco said its current customer base, or more than 5 million, which is supported by a complex distribution system, has outgrown the capacity of the OTMS. Lenie Lectura

Sunday, September 6, 2015 A3

Only 20% of govt power assets remain to be sold

By Lenie Lectura

HE National Power Corp. (Napocor) said only 20 percent of government-owned power assets, with about 1,600 megawatts (MW) of generation capacity, have yet to be privatized. These include the 32-MW Power Barge (PB) 104 in Davao City; the 727MW Caliraya-Botocan-Kalayaan hydropower facility; the Agus hydropower plant; the Independent Power Producer Administrator (Ippa) contract for the Unified Leyte (UL) geothermal-power plant; the 210-MW Mindanao coalfired power plant in Misamis Oriental; and the 140-MW Casecnan multipurpose hydroelectric power plant. The Power Sector Assets and Liabilities Management Corp. (Psalm) is the agency mandated by Repub-

lic Act 9136, or the Electric Power Industry Reform Act of 2001, to handle the sale of the remaining state-power assets and financial obligations of the Napocor. Psalm will also rebid the 850-MW Sucat thermal-power plant. “Per estimates of the Psalm, the body created by Epira to dispose of the remaining power assets of the country, the government stands to earn about $3.2 billion from the sale, beginning with PB 104 in Davao this year, up to the Agus Pulangi plants in

Mindanao by 2017,” the Napocor said. The Napocor maintains these assets while awaiting privatization. The responsibility of operating and maintaining these undisposed assets is performed by two functional groups in Napocor-Mindanao Generations for Agus and Pulangi, while the PB is under the Resource Management Services. So far, the biggest power facility sold by Psalm is the 218-MW Angat hydroelectric-power plant that was acquired by Korea Water Resources Corp. (K-Water) for P19.66 billion. K-Water is set to start the retrofitting of Angat Dam and the power plant. Napocor, however, will continue to manage Angat Dam’s nonpower components, like the spillway, dam and watershed. As of March 2015, proceeds from the sale of state-owned power assets reached $19.878 billion. According to the Department of Energy (DOE), actual collection stood at $9.266 billion as of end-October last

year. This means that $10.612 billion has yet to be collected from the privatization of these assets. Of the total amount collected, $3.534 billion came from power-generation assets sold; $3.772 billion from transmission assets; $1.956 billion from appointment of Ippa; and the rest from decommissioned plants. Psalm has yet to receive the payment of $2.611 billion from the sale of transmission assets and $8.001 billion from proceeds of Ippa. “The proceeds were utilized for debt repayment, regular payment of debts and independent power producer obligations, and payment of other privatization-related expenses,” the DOE reported. In particular, $1.298 billion was used for debt prepayment; $4.466 billion for regular debt service; $2.027 billion for lease obligations; $107 million for other expenses; $1 million for Transco operational expenses; and $1.156 billion was placed in temporary investment.

SundayV

Busine

A4 Sunday, September 6, 2015

editorial

A long-awaited action of the Ombudsman

ore than two years after the Supreme Court found the Development Acceleration Program (DAP) unconstitutional and directed all appropriately mandated agencies of the government to investigate officials who had any hand in the program’s administration, the Ombudsman is currently acting on that directive. The Ombudsman, as reported, is now investigating President Aquino, Budget Secretary Florencio B. Abad, some lawmakers and officials of local government units for actions taken relative to the DAP. We regard these inquiries with great seriousness, although some administration critics laugh them off, especially the one aimed at the President, as nothing more than moro-moro. Lawyers tell us that the President cannot be held liable for official acts carried out in the performance of his duties. If the matter is nonofficial, that will be something else, of course. Whether the President is liable does not unduly concern us at this time. What concerns us is the truth of the matter. For instance, were DAP funds used to bribe the senators, each of whom reportedly got P50 million or more in order to convict Chief Justice Renato C. Corona? Who are the bribe-givers and the bribetakers? What should be done to them? What other purposes were the DAP funds used? Except the money disposed within the bribery ambit, much of the funds, as it is turning out, were coursed through non-Napoles non-governmental organizations. But the modus operandi, according to Assistant Ombudsman Asryman Rafanan, who is leading the investigation, is almost the same. The DAP is, of course, different from the Priority Development Assistance Fund (PDAF), which is the legislators’ pork-barrel kitty. The disposition of PDAF funds is under separate investigation. Three legislators—Senators Juan Ponce Enrile, Jinggoy Estrada and Ramon Revilla Jr.—are currently in detention for plunder of PDAF funds, although Enrile was recently released on bail on “humanitarian grounds.” For far too long, our justice system has been tainted with class bias and extreme inefficiency. How many rich people have we ever seen being sent to prison? In contrast, poor people are incarcerated on the flimsiest of excuses, even before their cases have been investigated. And how long do the courts decide? Years, if not decades? And the most repulsive part of it is the fact that moneyed people sent to prison are allowed to enjoy life in jail as free men, complete with air-conditioned cabanas, television sets, mobile phones, iPods, and other advanced and technologically sophisticated gadgets. They are even permitted to be entertained by live bands and stage shows. Perhaps, the timing of the DAP investigations is inopportune, close as it is to national elections, encouraging critics to think that the investigations are no more than “demolition jobs” of politicians who want to destroy their opponents. But the timing of these inquiries notwithstanding, they are necessary to reestablish respect for our justice system. We want these investigations to be carried out without fear or favor, the cases tried in court and just sentences meted out. The judicial proceedings, however, must be completed within a reasonable time frame. We want to see the conviction and punishment of the guilty parties, whoever they are.

Can nuclear war be avoided? By Gunnar Westberg Inter Press Service

ÖTEBORG, Sweden—The Canberra Commission on the Elimination of Nuclear Weapons had as members former leading politicians or military officers, among others a British field marshal, an American general, an American secretary of defense and a French prime minister. The commission unanimously agreed in its report in 1996 that “the proposition that nuclear weapons can be retained in perpetuity and never be used—accidentally or by decision—defies credibility. The only complete defense is the elimination of nuclear weapons and assurance that they will never be produced again.” So, that’s it: Nuclear weapons will be used if they are allowed to remain with us. And even a “small” nuclear war, using 1 percent or less of the world’s nuclear weapons, might cause a worldwide famine leading to the death of a billion humans or more. Lt. Col. Bruce Blair was, for several years in the 1970s, commander of US crews with the duty to launch intercontinental nuclear missiles. “I knew how to fire the missiles, I needed no permission,” he states. In the 1990s he was charged with making a review for the US Senate on the question: “Is unauthorized firing of US nuclear weapons a real possibility?” Blair’s answer was “Yes,” and the risk is not insignificant. On Hiroshima Day, August 6, this year, a major newspaper in Sweden, Aftonbladet, carried an interview

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Sunday, September 6, 2015

with Colonel Blair, now head of the Global Zero movement for the elimination of nuclear weapons. The reporter asked: “Mr Blair, do you think that nuclear weapons will be used again?” Mr. Blair was silent for a while, and then responded: “I am afraid it cannot be avoided. A data code shorter than a Twitter message could be enough.” Blair reminds us of the story of the “Permissive Action Link,” a security device for nuclear weapons, the purpose of which is to prevent their unauthorized arming or detonation. When Robert McNamara was US secretary of defense in the mid1960s, he issued an order that to be able to fire missiles from submarines, the commanding officer must have received a code which permitted the launch. However, the navy did not want to be prevented from firing on its own initiative, such as in the case that contact with headquarters was interrupted. The initial code of 00000000 was for this reason retained for many years, and was generally known. McNamara, however, did not know this until many years after he left the government. A Soviet admiral once told me that as late as around 1980 he could fire the missiles from a submarine without a code. When systems of control of the launch systems are discussed, we often learn—as a kind of post scriptum—that there is a Plan B: If all communication with HQ is dead and the commanders believe the war is on, missiles can be fired. We are never told how this works. But there is a Plan B. What is the situation today? Can

hen He returned from the region of Tyre, and went through Sidon to the Sea of Galilee, through the region of the Decap’olis. And they brought to Him a man who was deaf and had an impediment in his speech; and they besought Him to lay His hand upon him. And taking Him aside from the multitude privately, He put His fingers into his ears, and He spat and touched his tongue; and look-

an unauthorized launch of nuclear weapons occur? Colonel Blair says “Yes.” Mistakes, misunderstandings, hacker encroachments, human mistakes—there are always risks. After the end of the Cold War, we have learnt about several “close calls”. There was the Cuban missile crisis, and especially the “Soviet submarine left behind.” There was the Petrov Incident in September 1983. There was the possibly worst crisis—worst but little known—of the Nato exercise “Able Archer” in November 1983, when the Soviet leaders expected a North Atlantic Treaty Organization (Nato) attack any moment—and Nato had no insight into the Soviet paranoia. There are numerous other dangerous incidents about which we have less information. Martin Hellman, a mathematician and expert in risk analysis, guesses that the risk of a major nuclear war may have been as high as 1 percent per year during the 40 Cold War years. That sums up to 40 percent. Mankind, thus, had a slightly better than even chance of not being exterminated. We were lucky. Maybe the risk is smaller today. But with the risk of proliferation, with new funds allocated to nuclearweapons research and with the increasing tension in international relations, the risk may be increasing again. As long as nuclear weapons exist, the risk exists. The risk of global omnicide, of Assured Destruction. It is nuclear weapons or us. We cannot co-exist. One of us will have to go. A prohibition against nuclear weapons is necessary. And it is possible.

ing up to heaven, He sighed, and said to him, “Eph’phatha,” that is, “Be opened.” And his ears were opened, his tongue was released, and he spoke plainly. And He charged them to tell no one; but the more He charged them, the more zealously they proclaimed it. And they were astonished beyond measure, saying, “He has done all things well; He even makes the deaf hear and the dumb speak.”—Mark 7:31-37

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opinion@businessmirror.com.ph • Sunday, September 6, 2015 A5

Religion and democracy F

Free Fire

By Teddy Locsin Jr.

OR five days, traffic on Epifanio de los Santos Avenue (Edsa) stalled and Iglesia Ni Cristo (INC) people power was blamed for it. Traffic on Edsa had stalled for 900 days previously, ever since the Metro Rail Transit flew off the rails thanks to a switch from world-class Sumitomo to a Paniquiclass talyer. Abaya and Tolentino were blamed. As if on purpose, bus companies flooded Edsa with more buses than people, thereby enabling—by enriching—transport officials to run for election next May. Blame fell again on Abaya and Tolentino when the INC pulled out the faithful and yet traffic did not go away. But, no, there was no deal to sacrifice justice kuno for bloc

voting. Such a deal anyway cannot be enforced come elections. Yes, bad traffic is aggravating; yet it happens every Yuletide season with the custom of celebrating the birth of Jesus by shopping for friends. For five days, the INC got the brickbats intended for Abaya and Tolentino—but instead of blaming stupidity and cupidity or kabobohan and kurakot for the traffic, we blamed the high-handed refusal of the INC to be publicly humiliated by de Lima on the mere complaint of a Samson (without hair) who yet enlisted de Lima—I mean Delilah—to get back at his church. What the INC protested was less the inordinate interest of de Lima in Samson’s complaint, as the kababuyan to which

the Church was subjected. In that it was correct. The highest right in the Bill of Rights is not something as frequently trivial as freedom of speech but freedom of religion. That freedom demands that the state favor no religion and that it cannot cross the divide between state and church to slap around a church until it gives the Liberal Party its bloc voting. Freedom of religion demands complete respect from democratic government—and that includes respect for the pope when he visits, even if Catholics are timid about their faith. Modern democracy was invented precisely to uphold and protect all religions. The parents of the Founding

Fathers had fled the state religions of Anglicanism and Catholicism to the freedom to worship of the American wilderness. Freedom of religion demands, at the very least, the same respect, and tact, that this Aquino government extends to the religion of terrorists but will not show to Iglesia ni Cristo—a Reformation and Enlightenment Church. Felix Manalo was a close student of Voltaire’s complete works, as he told my father. You see real Christianity is not a religion of passive prayer for a crack at heaven. Real Christianity demands prayerful combat in this life, to bring back to earth the kingdom of heaven that was lost by man’s first disobedience, Milton said (Paradise

Lost). That is why the first virtue of Christianity is obedience to God and his church—whichever of several it happens to be. This is aggravating but only to those who think of religion as a private activity like playing with yourself; though mystics warn there is no happy ending but the dark night of the soul instead. (Saint John of the Cross, translated by the fine fascist poet Roy Campbell). True religion is not passive. It is quick to take offense because it involves the belief, as The Little Prince said, that what is invisible matters more than what is visible. This belief is the lifeblood of real religion that democracy was invented to protect.

Full-time work is harder to find By Justin Fox

means the pre-1994 percentages aren’t entirely comparable with the ones that followed. With voluntary part-time work it’s easy enough to just look at the chart and conclude that the trend was pretty flat before the shift and pretty flat after. The movements in involuntary part-time work have a big cyclical component, though. In a recession, the share of involuntary part-timers rises. In a recovery, it declines. This makes it harder to see the trend, especially with the added complication of the 1994 survey change. So I adjusted the data on involuntary part-time work (that is, part-time work for economic reasons), using the brute-force

Bloomberg View

ince the jobs recovery began in 2010, the percentage of US workers putting in fewer than 35 hours a week has been dropping, driven mainly by a decrease in the number of people who are working part time but want full-time employment. That always happens in a recovery. I’m curious about the long-run trend, though. As I’ve been saying a lot lately, there isn’t any good time-series data that tracks the growth (or lack of growth) of the freelance or gig economy through the decades. But many estimates of the size of this contingent or alternative work force include part-timers, on the reasoning that part-time work also implies less commitment on the part of employer and employee than a traditional full-time job. And the Bureau of Labor Statistics (BLS) does have monthly data on part-time work going back to 1955. Here’s what it looks like, up through today’s employment report (upper graph): There was a secular rise in the 1950s through 1970s in the percentage of those working part time for noneconomic reasons, a rise that coincided with big increases in the percentage of women in the labor force.

Since the late 1970s, this has gone more or less flat. The abrupt upward shift in 1994 was a result of a change in the survey question asked to differentiate noneconomic reasons for working part time from economic ones. Here’s the extended explanation from the BLS and the Census Bureau, which is worth reading because it helps make the distinction between the two categories clearer: Persons who work part time (fewer than 35 hours a week) do so either voluntarily (that is, because of personal constraints or prefer-

method of simply reducing the pre1994 percentages by 1.1 percentage points—the size of the shift in January 1994. Here’s the result (lower graph): With the adjustment, one can see that the percentage of involuntary part-timers in the last recession was the highest on record. And despite the decline since 2010, the current percentages are quite high by historical standards. The long-run trend is clearly upward. That may change if this recovery keeps going and going, and the percentage of involuntary part-timers keeps dropping. But for now, no, you’re not imagining it if you think it’s harder to get a full-time job than it used to be.

ences) or involuntarily (that is, because of business-related reasons such as slack work or the lack of full-time opportunities). Because respondents typically are not familiar with this distinction, the question asking why those working part time were doing so was reworded to provide examples of the two types of reasons. As a result of the change in the question, more than a million people suddenly moved from the involuntary (economic reasons) category to the voluntary (noneconomic reasons) one. That

Pope Francis makes it an exciting time to be Catholic By Carolyn Alessio Chicago Tribune/TNS

arlier this week Pope Francis made a historic visit via satellite feed to Chicago’s Cristo Rey Jesuit High School, where he reminded those of us in attendance that Catholic faith and education are capable of updating themselves. Not surprisingly, he spoke about social responsibility, which he called “friendship in society.” But after a student in my homeroom described her challenging skin condition and mentioned a passion for music, the pontiff surprised the entire crowd by asking her to sing an impromptu song. In my seat at the back of the school’s chapel, I sat stunned, not just by Valerie’s strength in singing a graceful Spanish song about the Virgin Mary on international TV, but by the refreshing, welcoming tone of this pope and his priorities for modern Catholics. In t he past, when I have

mentioned to strangers that I taught at a Catholic school, they sometimes responded as though I had lost all capacity for independent thought. To compound matters, a recent study of the Center for Applied Research in the Apostolate confirmed my status as the Typical American Catholic—down to my gender, age, education, income and middle name (Mary). But the pope’s virtual encounter with our students and other American audiences this week was profound evidence of a personal connection with ordinary people’s stories and sources of courage they may not have known they possessed. His ministry has a special resonance in America’s Latino communities. The three venues included in the pope’s satellite visit indicated a lot about his areas of focus and overall vision for the church: our school, which primarily serves the proud children of immigrant, lower-income families; a Texas parish near the US-Mexican border; and a group of people in

Los Angeles who have experienced homelessness. As the pope listened to stories of extreme challenge and living on the margins of society, he repeatedly reminded his subjects that they were not alone, and he urged them to remain courageous. As a world leader who has famously broken with formal traditions and participated in such modern rituals as “selfie” photos with tourist fans, the pope adeptly used screens and satellite technology to reflect back Americans’ devastating stories as well as their hidden strengths. Valerie’s song, so unscripted and uplifting, provided an apt soundtrack for the pontiff’s disarming, down-to-earth style and messages. He reminded us of Jesus’ humble origins. When he spoke about forces in social justice, he further connected with his audience by using soccer metaphors to illustrate his points. Back in Rome, the pope’s range and accessibility are spectacularly demonstrated in the Vatican Mu-

seums, which are home to both the Sistine Chapel and an exhibit of the pope’s autographed soccer jerseys from across the world. One glorious morning last summer, I had the opportunity to view both. Later, when I told my students about seeing the soccer jerseys autographed for “Francisco,” they were delighted and wanted to see photos. (Not to worry: We also study Michelangelo and The Creation of Adam at our high school.) It is not surprising that tourism to the Vatican has more than doubled since Pope Francis took office, according to published reports. While in Rome, I also had a chance to hear the pope address the crowd in Saint Peter’s Square from his apartment. As in Chicago, the pontiff was mainly discernible on a large screen and sound system set up on the square. That day, Rome was celebrating the Solemnity of the Feast of Peter and Paul, the patron saints of the city. After the noontime Angelus, in which the pope offered a blessing and discussed the relevant gospel,

he greeted the crowd. Speaking in everyday Italian, he mentioned his upcoming trip to Bolivia, Ecuador and Paraguay. He also encouraged the crowd to enjoy our lunch and to make sure we saw that night’s celebratory fireworks, whose proceeds would benefit a charity initiative in the Holy Land and countries of the Middle East. Squinting up at the papal apartment and over at the large color screen, I listened to the pope in the stark heat of Saint Peter’s Square and felt oddly at home. For the first time in years, my faith felt not just sustaining but exciting. Earlier this week, when my Cristo Rey students rushed into homeroom, they were buzzing, but not about the recent surge of international attention. The seniors were excited about signing up for opportunities to volunteer this fall, which includes helping out at the Chicago Marathon. Fresh from their unprecedented opportunity to speak with the celebrity pontiff, the students cared less about his fame than living out his values.

A6 Sunday, September 6, 2015

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Traffic situation in key PHL cities, provinces worries MAP Continued from A1 addressing the traffic woes around the Philippines. It is not enough to address small-scale issue, he said, noting that long-term problems should be the top priority. “Solving this humongous traffic problem necessitates collective action. There should be symmetry of actions. The government must know what its left hand is doing. Without a comprehensive trafficmanagement plan, traffic woes would still haunt us even after two or three years from now, and we cannot be made to suffer for that long. Let’s unite, and solve this traffic-congestion problem as soon as possible,” he said. The congestion in Metro Manila and its nearby provinces has been there for years now. Experts tag it to the inefficient planning for infrastructure development and the surge in economic expansion. Aside from appointing Cabinet Secretary Jose Rene D. Almendras as the point man in addressing the

IMF…

road congestion in Metro Manila, the President has approved the implementation of a multitrillion-peso road map for infrastructure development around the metropolis. The P4.76-trillion Roadmap for Transport Infrastructure Development for Metro Manila and its Surrounding Areas, otherwise known as the Dream Plan, calls for the establishment of a modern, well-integrated and -coordinated, and affordable transport system for Metro Manila and the adjacent areas of Bulacan, Pampanga, Cavite and Batangas. The system will consist of expressways, new roads elevated and on ground, railways elevated and on ground, subways, airports and seaports. Near-term components are for completion by 2016, while medium- and longer-term components are for completion by 2020 and 2030, respectively. When completed, the plan will accomplish at least three objectives: The reduction of traffic

Outlook…

Continued from a1

and considerable slack in the labormarket remains,” the IMF added. The Philippine Statistics Authority (PSA) earlier reported that the country grew at a revised growth of 5 percent in the first quarter and at 5.6 percent in the second quarter of the year. Inflation, meanwhile, has been falling below 1 percent—most recently in August, at 0.6 percent; while the foreign-exchange market ad stock exchange has recently lost significant gains this year due to market volatility. Despite this, the IMF maintained that the country’s external and fiscal positions are still strong, with a significant level of currentaccount surplus and gross international reserve. The IMF executive board, which assessed the Philippine economic dynamics, also lauded the country’s authorities for their “prudent macroeconomic manage-

congestion in the metropolitan area; the diminution of air pollution in the metropolitan area and its environs; and the reduction of transportation costs to the urban population, especially the poor and other low-income groups. At the level of the individual, completion will result in the reduction of the average travel fare of commuters from the current P42 to P24, and also the lowering of the current average travel time of 80 minutes to 31 minutes. Aside from requiring the construction of 504 kilometers of intercity and urban expressways, 137 km of other roads and 318 km of railways, the road map also states that economic losses due to the chronic traffic in Metro Manila could balloon to P6 billion per day, from the current P2.4 billion, by 2030. As of today, roughly 20 percent to 30 percent of the Japan International Cooperation Agency’s Dream Plan has been done—that is, in terms of design and implementation.

Continued from a1

ment, which has delivered strong outcomes and has set the stage for favorable growth prospects despite external headwinds.” The IMF also said that it welcomes the government’s plan to step up infrastructure investment and social spending, and urged the government to further strengthen public financial management and budget execution and mobilization to meet the large social and infrastructure needs. The current monetary-policy stance was also deemed to be appropriate at the conditions of low inflation, “moderating and more balanced” credit growth and moderating but still robust economic activity. “Directors supported the authorities’ medium-term priorities that would allow the country to reap the dividends from its young and growing population,” the IMF said.

safeguard the country. Also, Guinigundo said that if the country’s foreign exchange reserves will decline, it is not just because of their foreign exchange operations, but also the debt payments for the national government and negative revaluations. September 10, Thursday

June FDI

n May FDI: The central bank reported last month that foreign direct investments (FDI) toward the country hit $1.64 billion in the first five months of the year. Amid the inflows, the total FDIs were 41.9 percent lower than the $2.82 billion inflows seen in the same five-month period last year. n June FDI: Steady inflows of FDIs are still expected amid recent global headwinds. Bank of the Philippine Islands (BPI) Nicholas Antonio Mapa, however, said that despite this, there are still impediments to the full potential of the FDI inflows – which remained clustered in select sectors of the economy. Bianca Cuaresma

Mixed signals in US employment report Continued from A1

Over the past 12 months, the rate has dropped by a full percentage point to a seven-year low, and 1.5 million people are no longer counted as unemployed. Wages are creeping up. Average hourly earnings rose at 0.3 percent in August, and have risen 2.2 percent over the past year. That’s more than the inflation rate, giving workers a bit more purchasing power. Hiring in August was spread widely across all sectors except manufacturing, which shed 17,000 jobs. That sector faces turmoil in China and a broader slowdown in the global economy. China’s devaluation of its currency and Europe’s ongoing debt crisis have made the US dollar stronger against most global currencies, and makes US manufactured products more expensive abroad. It also makes goods manufactured abroad and imported into the US cheaper. “Financial concerns in the global equity markets, driven, in particular, by worries about growth in China, could partly explain the lower manufacturing hiring rates,” said Chad Moutray, chief economist for the National Association of Manufacturers. “There could also be some seasonal factors, given that it was August, a traditionally slower month.” The unusually low price of oil and gasoline have been a windfall for US consumers, who now have more to spend. It seems to have helped hiring in the leisure and hospitality sector, which has been solid this year and added another 33,000 jobs in August. Health-care hiring, a big sector in an aging nation, added more than 40,000 jobs in August. State and local governments added 31,000 jobs as teachers began the school year. The Federal Reserve (the Fed) seems ready to move on interest rates: The Fed has signaled it would like to raise its benchmark interest rate this month for the first time in almost a decade. When that happens, lending costs for consumers and businesses will slowly begin to creep up after years of record low rates. Friday’s report does little to argue that the economy can’t take a rate increase, and many economists think the Fed’s only concern now is whether financial markets calm down. They have been unstable because of fear that the world’s second-largest economy, China, is in worse shape than advertised. “There is no way the Fed can point to the labor market as a rationale to delay the start of rates normalization,” Neil Dutta, head of US economics for Renaissance Macro Research, said in a note to investors. TNS

Sports BusinessMirror

By Joel Orellana

FTER a successful opening ceremony, University of the Philippines (UP) completed a double celebration on Saturday after bagging its first opening-game victory in four years. The Fighting Maroons showed why they are dead serious of earning a Final Four trip after outlasting University of the East (UE), 62-55, at the start of Season 78 University Athletic Association of the Philippines men’s basketball tournament at the Smart Araneta Coliseum. The season’s host banked on Gelo Vito’s hot hands in the fourth quarter then survived the Red Warriors’ last-ditch run to preserve the victory and give rookie Coach Rensy Bajar a sizzling debut in the league. “The players believed that they can win and they are winners,” said Bajar, whose win against UE already matched the school’s campaign last season of one victory against 13 defeats under Rey Madrid. “Down the stretch, I told them they [Red Warriors] will make a run and they just keep on believing on winning this game,” he added. And Vito exemplified the school’s confidence in the payoff period with three clutch three-pointers that doused the rally of UE, which stormed back from a 14-point deficit. Vito, a sophomore big man majoring in Sports Science, was the lone Fighting Maroon in double figures with 11 points, nine came in a crucial stretch of the fourth period and all behind the rainbow territory. “I just take the shots when I’m open,” said the southpaw Vito, who played for La Salle Greenhills in high school. “I thank the coaching staff and my teammates for trusting me.” The Diliman-based team controlled majority of the game but the rookie-laden Red Warriors kept on coming back and Chris Javier’s back-to-back baskets put them within four, 41-45, with seven minutes left in the game. Vito uncorked his first triple at the top of the key that sparked a 9-2 swing he capped with a three-pointer, which was actually a four-point play—he missed the bonus free throw to give University of the Philippines a 56-43 separation

A8 | S

unday, September 6, 2015 mirror_sports@yahoo.com.ph sports@businessmirror.com.ph Editor: Jun Lomibao

BIG COMEBACK

MAROONS IN HOT START

SEASON 78 of the University Athletic Association of the Philippines opens shop on Friday with an elaborate ceremony prepared by host University of the Philippines. KEVIN DE LA CRUZ

with 4:37 remaining. UE made another last push with rookie Edison Batiller leading the in a 13-3 exchange to trim the lead to 55-59, 20.8 ticks left. But it was too late for the Red Warriors, as time was not on their side and UP hit three more free throws to seal its first win in an opening day

for the first time since beating the same team, 69-61, in 2011. Batiller led all scorers with 17 points, while Javier added 10. Javier was ejected late in the game for landing an elbow on Jerson Prado resulting to a disqualifying foul.

Bajar, a seven-year pro in the Philippine Basketball Association, credited the team’s defense despite a slow start. “Even though we have opening-game jitters, our defense was consistent today. We limited UE to just seven points in the first quarter

and 55 in the game. UE is a transition team and that’s an achievement for us,” Bajar said. UP managed to get the victory despite committing 30 turnovers. The Red Warriors also had their share of errors with 25, but they shot poorly from the field (21-of-68).

EW YORK—Even if her latest troublesome first set had finished only an hour earlier, it seemed a distant memory by the time Serena Williams smacked a cross-court forehand passing winner on the run and wound up doing the splits behind the baseline. She leaned forward, yelled and shook both fists, victory nearly hers. Yes, Williams knows, as well as anyone that you can’t count her out, no matter the deficit, no matter how the pressure might be mounting as she closes in on completing tennis’ first true Grand Slam in 27 years. Eight times this season at major tournaments, Williams has dropped the opening set. Eight times, she has won. The latest comeback came in the third round of the US Open on Friday night, when Williams figured out a way to deal with a tricky opponent and get her own game going before it was too late, eventually emerging to grab the last eight games for a 3-6, 7-5, 6-0 victory over American wild-card entry Bethanie Mattek-Sands. “Getting out of it so many times definitely helps me,”Williams said. “It’s definitely not something I want to do, though. But, hey, a win’s a win, I guess.” Sure is. Williams ran her Grand Slam record to 24-0 in 2015, and 31-0 since her last defeat at a major, at Wimbledon in June 2014. At 5-all in the second set, Mattek-Sands was two games from completing the upset. She would not win another game. “She’s a great closer,” Mattek-Sands said. “Always has been.” After they left Arthur Ashe Stadium, Rafael Nadal failed to close out a victory despite taking the first two sets, the first time he has blown that big lead in a Grand Slam match. The eighthseeded Nadal’s 3-6, 4-6, 6-4, 6-3, 6-4 loss to the 32nd-seeded Fabio Fognini of Italy also ends the Spaniard’s 10-year streak of winning at least one major title per season. He lost in the quarterfinals at the Australian Open and the French Open, then the second round at Wimbledon. AP

GILAS TOPPLES U.S. FIVE G

ILAS Pilipinas pulled off a solid performance against USA Select Pro team to score a scary 78-74 victory to start capping its decent finish in the 37th William R. Jones Cup invitational tournament on Saturday at the Xinzhuang Gymnasium in Taiwan. Calvin Abueva carried the scoring load for the Filipinos with 20 points, but it was the timely baskets of Sonny Thoss in the closing minutes that secured the fifth victory in seven games for the Philppines, which could clinch second place with a win against Taiwan’s training team on

Sunday at 1 p.m. Thoss and Gary David added 13 apiece for the Philippines, which almost blew an 18-point lead when the USA Select Team staged a comeback in the final minutes of the contest. Former Purefoods Star import Marquin Chandler led the Americans with 20 points and 12 rebounds, while Cory Bradford added 19 points and 16 boards for the team of Coach Kevin Franklin. For the second straight game, Gilas Head Coach Tab Baldwin rested tournament sensation Terrence Romeo because of a foot injury. But Abueva was there to lead the

offense of the Filipinos, who erected a 51-33 lead early in the third period. The Americans, who dropped to 2-4 with the loss, threatened at 63-68, before Thoss hit three straight jumpers to give Gilas a 74-66 cushion with 1:23 remaining. Dondon Hontiveros, the hero in 92-88 overtime win over Wellington Saints of New Zealand last Friday, sealed the victory with two free throws, 76-71, with 2.3 ticks left. Iran clinched the Jones Cup crown after beating Russia’s club team, 78-54, for a tournament-best 7-1 record. Joel Orellana

Tierro, Iglupas dominate rivals

OP seeds Patrick John Tierro and Khim Iglupas braced for tough quarterfinal round matches by disposing of their respective rivals with relative ease in the Palawan Pawnshop-Palawan Express Pera Padala Tuna Festival Open at the General Santos City Tennis Court on Saturday. Tierro, itching to redeem himself from a failed title bid in the recent Olivarez Open, knocked off wild card Andrei Domingo, 6-0, 6-1, then trounced Bernardine Siso, 6-3, 6-2, to arrange a quarterfinals duel with Ronard Joven in the topranking event sponsored by Palawan Pawnshop and hosted by the country’s tuna capital. Joven, ranked seventh in the tournament presented by Technifibre, also the official ball, eased past Julius Mingoc, 6-2, 6-0, and Leander Lazaro, 6-2, 6-4, even as second seed Johnny Arcilla toppled Dominador Lagare, 6-1, 6-1, and Arniel Aya-ay, 6-1, 6-2, in the lower half of the 32-player draw of the event sanctioned by the Philippine Tennis Association headed by president and Parañaque City Mayor Edwin Olivarez. Casey Alcantara, chasing a second straight Open crown after upending Tierro in the Olivarez Open, produced the worthiest win in the day by shutting out No. 8 Arvin Ruel, 6-0, 6-0, for a crack at the semis against FilItalian No. 4 Marc Reyes, who survived Israel Abarquez, 4-6, 6-3, 6-4. “We expect action to pick up in the quarters where surprises could come in bunches given the depth of the field in both sides,” Palawan Pawnshop COO Bobby Castro said. Arcilla, a many-time Philippine Columbian Association Open and three-time Olivarez Open champion, will next face sixth-ranked Fritz Verdad, who scored a walkover win over Kenneth Salvo, while third seed Vicente Anasta whipped Einathan Abella, 6-3, 6-2, to seal a clash with unranked Christian Edullantes, who scored a 1-6, 7-5, 4-0 (ret.) win over Lyndon Labandero.

NATIONAL University’s Jaja Santiago uses her height to the hilt in scoring a kill against Ateneo star Alyssa Valdez. NONOY LACZA

LADY EAGLES FORMALIZE GRIP OF NO. 1

TENEO outhustled National University (NU) in a thrilling fourth-set duel, hacking out a 15-25, 25-19, 25-21, 25-23 victory to formalize its claim of the No. 1 spot in the Final Four of the Shakey’s V-League Season 12-Collegiate Conference at The Arena in San Juan City on Saturday. The Lady Eagles blew a three-point lead late in the fourth frame, but gallantly fought back from 17-20 down behind Alyssa Valdez, Amy Ahomiro and Bea de Leon to frustrate the Lady Bulldogs and notch their seventh straight win that capped their sweep of the elims and the quarters of the tournament presented by PLDT Home Ultera. Valdez, doing what she does best, blasted in four hits, while Ahomiro banged in two of her own and de Leon came through with a timely block off Aiko Urdas to end the thrilling one-hour, 31-minute encounter between two of the best teams in the league sponsored by Shakey’s. “Coach [Tai] kept reminding us to just play happy and enjoy the game,”Valdez said. “But everybody played well and we’re happy to get the win.” NU thus settled for No. 2 on a 5-2 record for a clash with the No. 3 squad Far Eastern University in the Final Four of the event backed by Mikasa and Accel and organized by Sports Vision. The Lady Tamaraws rode the momentum of a strong fourth set romp and dominated the Universirty of Santo Tomas (UST) Tigresses, 25-16,

19-25, 27-29, 25-15, 15-10, to also finish with a 5-2 card. NU, however, took the second spot with a higher tiebreak score. The loss dropped UST to fourth at 4-3 and faces the specter of going through a playoff with Arellano University (3-3), in case the Lady Chiefs get past the ousted College of St. Benilde Lady Blazers at the close of the quarters phase on Sunday. The Tigresses threatened last at 10-14 after falling by seven match points at 7-14 but Royse Tubino scored off-the-block to wrap it up and seal a best-of-three semis showdown with the Lady Bulldogs. The Lady Bulldogs, who overwhelmed the Lady Eagles in the opening set but dropped the next two, actually looked poised to sending the match into a deciding fifth as Pablo and Jaja Santiago led a sizzling NU six-hit roll that shoved them to a 20-17 lead in the fourth. But Ahomiro scored on a quick set and an ace while Valdez, moving over to the front row, scored four, including a soft tip to lift the Lady Eagles to a 23-22 lead. The Ateneo skipper made an error in the next play to enable NU to draw level but rebounded with attack in deep right before de Leon foiled Urdas’s spike that bounced back into an unguarded spot in the left side of the NU court. NU, thus settled for No. 2 on a 5-2 slate for a clash with the No. 3 squad in the Final Four of the event backed by Mikasa and Accel and organized by Sports Vision.