BusinessMirror December 24, 2014

By Lorenz S. Marasigan

The private-sector group working to eliminate the congestion at the sea

gateways in Manila forecasts that the capital’s sea terminals would breach their full capacity in January due to the slow movement of cargoes from the ports to the market.  In a media briefing,  Port Congestion Multisectoral Working Group (PC-MWG) Chairman Ernesto M. Ordoñez described the phenomenon as a “nightmare” that would result in lesser products in the marketplace.  He lamented the potential evaporation of the gains from the joint efforts of the government and the private sector to eradicate the bottleneck at the ports.  “The port congestion will let our investments suffer; and everyone will suffer,” Ordoñez said. 

THE Philippine central bank is allowing record Christmas remittances from overseas workers to give the peso

shelter during a global sell-off. The currency gained 0.9 percent against the dollar this quarter in Asia’s best perfor-mance, after an unprecedented $19.9 bil-lion of remittances in the first 10 months. Philippine government bonds returned 0.2 percent in the past month, after Moody’s Investors Service raised the credit rating one level to “Baa2,” the second-lowest in-vestment grade and surpassing Indonesia, whose debt lost 0.6 percent, Bloomberg indexes show. The central bank appears more inclined to let the peso appreciate, after the currency fell in December in the last three years, to keep inflation in check, according to HSBC

Holdings Plc. Moody’s attributed its deci-sion to the Philippines’s favorable economic growth prospects and President Aquino’s success in reducing debt levels since taking office in 2010. The ratings company noted that most of the nation’s current-account receipts come from manufacturing, services and cash sent home from overseas. “Remittances are highly supportive for the Philippines and the current account,” Mark Capstick, a London-based asset man-ager at BNP Paribas Investment Partners, which oversees €497 billion ($608 billion), said in a December 18 e-mail. “Clearly, the investment-rating upgrade from Moody’s will have further improved the country’s outlook for investors.” Capstick said he’s positive on the peso due to the “stability the currency exhibits”

in periods of risk, and is holding Philippine bonds and nondeliverable forward. Oil, inflationREMITTANCES, which account for 10 per-cent of gross domestic product, peak to-ward the last quarter, as some 10.5 million Filipinos repatriate cash for Christmas and New Year. While Philippine bonds offer the region’s lowest yields after accounting for consumer-price gains, the central bank appears to be biased toward curbing peso weakness to meet its lower 2015 inflation target, accord-ing to HSBC. Remittances are helping sup-port the peso, Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. said in a mobile-phone message on Monday.

Continued on A2

www.businessmirror.com.ph n Tuesday, November 18, 2014 Vol. 10 No. 40 P25.00 nationwide | 7 sections 32 pages | 7 days a weekn wednesday, december 24, 2014 Vol. 10 No. 76

A broader look at today’s businessBusinessMirrorthree-time

rOtary club Of manila jOurnalism awardee2006, 2010, 2012u.n. media award 2008

PesO exchange rates n us 44.6520 n jaPan 0.3719 n uK 69.5901 n hK 5.7573 n china 7.1769 n singaPOre 33.8735 n australia 36.3616 n eu 54.5960 n saudi arabia 11.8958 Source: BSP (23 December 2014)

Continued on A2

PAPAL VISIT 2015

21 DAYS

streamline tv-rOOm clutter

bOnding with family and nature in anvaya cOve

B O L. GAustin American-Statesman

LET’S say you think Santa Claus is bringing you some home-theater stuff this year. Maybe Santa thinks you’re some sort of saint and is bringing you a gigantic 4K HDTV

(lucky!). Or maybe you mixed in some naughty activity in 2014 and you’re expecting something more modest like a little Apple TV box for streaming TV shows, music and movies.

You’ll have some new stuff to add to your A/V setup. Home-theater upgrading and expanding is fun. You get to play with exotic new system menus and assign audio/video inputs and wrangle dozens of cables while trying to keep them out of sight behind the TV.

Did I say “fun?” I meant “exhausting, stressful and, for most people, completely baffling.” Unless you have the resources to hire someone to come set up a custom system, hide the wires and get you up and running (more power to you if you do), most of us have to do our best to get DVD players, HDTVs, cable/satellite boxes, game consoles and whatever else still resides in the living room hooked up in a sane way. Before you open boxes and start connecting, maybe it’s time to streamline things a bit in preparation for your next upgrade. Here are a few things you can do to bring some sanity to your system.

COMPONENT CLEARINGTHE most dramatic way you can get rid of tons of wires and clutter in your home theater is to eliminate whole components from it. Do you have an old carousel CD player that hasn’t played music since 2008? Have you largely

ditched your DVD player for Netflix and on-demand cable?

Many of us carry around all our music on phones and barely crack open a DVD case these days. If that’s the case for you, get rid of those boxes. Jeff Webb, owner of Austin’s A&B TV, said that most new HDTVs have applications such as Netflix, Hulu and Amazon Instant Video built into them. Many customers who want a basic setup “will just stream everything on their TV and not even use Blu-ray.”

If you own a video-game console such as a PlayStation 3, PlayStation 4 or Xbox One, you can play Blu-rays and get rid of the stand-alone DVD/Blu-ray player. You can even use some game consoles for music CDs or streaming from services such as Spotify and Pandora.

Speaking of game consoles, now’s a good time to trade in or donate an old system like a Nintendo Wii or Xbox 360 if your gaming habits have shifted to mobile devices or you’ve switched to a newer console.

You won’t just be getting rid of boxes, you’ll also eliminate all their associated cabling and free up some inputs on your TV or A/V receiver.

‘ONE WORD: SOUNDBARS’WEBB said that many customers still want the full home-theater experience and many are excited about Dolby Atmos, a surround sound experience that uses a subwoofer and at least eight speakers, including some in the ceiling, “like you’re in a true movie theater.”

But many others, he says, are perfectly fine with soundbars, typically a single wide speaker that sits above or below an HDTV.

You won’t get the full theater experience,

Life Wednesday, December 24, 2014 D1BusinessMirrorEditor: Gerard S. Ramos • [email protected]

DEAR God, especially this Advent Season, we are grateful for the gift of life. We take the necessary measures, consistent with our

needs and resources, to nurture and safeguard our life. We consider our obligation to help those who cannot meet their basic needs. We try to take concrete action to help those living in poverty to alleviate their condition, may we continue to have respect for life. Amen.

� e gift of life

JO A. SALDANA AND LOUIE M. LACSONWord&Life Publications • [email protected]

Expecting home-theater gifts?Now’s a good time to streamline TV-room clutter

B JT N

MORE than the season of giving, Christmas is also the season of receiving—free international calls, that is.

In a partnership announced recently at the Globe Tower in Bonifacio Global City that aims to bridge the distance between Filipinos abroad and their families here at home—a distance that becomes even more heartbreaking at this time of the year—Globe Telecom, through its International Business Group, and top communications application LINE is offering international calls for free this holiday season.

“At Globe, we know how much Filipinos value relationships, which is why we continuously strive to provide them with groundbreaking means to stay connectedwith those who matter most,” Globe Executive Vice President and COO Gil Genio said.

“Our partnership with LINE allows overseas Filipinos worldwide to share the joys of a truly Pinoy one-of-a-kind Christmas with their loved ones despite being separated by distance.”

Through a promotion that spans nine days from December 24 to January 1, 2015, Filipinos overseas using LINE’s Premium Call function can dial in free calls to their loved ones at home who are Globe and TM subscribers. Even prepaid users with no balance can take calls as long as their SIM is active.

According to Globe Senior Vice President for International Business Rizza Maniego-Eala, this partnership is another testament to Globe’s drive in bringing closer families separated by distance.

“Calling is still one of the most popular ways to send a Christmas greeting. Hearing the voice of a loved one saying ‘Merry Christmas’ definitely warms the heart of every Filipino,” she said.

“Furthering our commitment to bridging the gap between our kababayans around the world and their loved ones back home, we are happy to forge an alliance with LINE to let Filipinos, no matter where they are, enjoy worry-free and nonstop calls using the app.”

LINE Philippines head Greg Kim said the collaboration between LINE and the telecom giant is a sign of great things to come.

“Being a popular mobile-messenging app worldwide, LINE is very pleased to provide high-quality service to Filipinos particularly during this season when keeping in touch is paramount. Our collaboration with Globe ushers in a new era in telecommunications as the synergy of an app and a network is created, expanding our reach to more Filipinos who wish to get in touch with friends and family using Globe and TM in the Philippines.”

■ For more information on Globe’s international service, visit www.globe.com.ph/international.

International season’s greetings for free

C D

‘24 ORAS’ KEEPS GMA ON TOP OF

PRIME TIME »D3

Just look at the Makati commer-cial busy district, the area known for grazing horses in the past, has been transformed into the country’s financial Wall Street. Ayala Alabang, once a sleepy barangay in Muntin-lupa City, is now one of the prime properties of the southern part of the metropolis.

ALI, through Ayala Land Pre-mier, is going to bring its vaunted expertise and experience to trans-form the sleepy town of Morong, Bataan,  through Anvaya Cove, the company’s first venture into leisure real-estate development.

“ALI had the option to develop Anvaya Cove into a housing project instead of a leisure residential and golf-course development. But we thought of a longer term and devel-oped a project for sustainable living,” said Jose Juan Jugo, head of ALP, in a recent briefing held in Makati City.

Originally coming from the San-skrit word meaning family, Anvaya Cove has 470 hectares of property that includes both a seaside resort and mountain retreat. The coastline spans 3.5 kilometers.

One of the major attractions of Anvaya Cove is the 18-hole golf course with views of both the moun-tain and the sea, and a beach facil-ity. In fact, the Anvaya Golf Course was recently awarded the “Best

New Golf Course in Asia” at the Asian Golf Awards by the Asian Golf Monthly, a member of the Asia Pa-cific Golf Group, one of the premier organizations of golf aficionados in Asia. Considered as the “Oscars” of the golf industry in Asia Pacific, the Asian Golf Awards achieved a record-breaking number of nomi-nees and voters which numbered to 69,000 golfers throughout the continent. “We are very honored and proud to have placed the Philippines on the international golf map with this achievement by Anvaya Cove,” Jugo said.

Jugo said that sustainable living will be the core of the development of Anvaya Cove. With its distinctive natural setting and world-class facili-ties, he said residents of the project will be able to commune closely with Mother Nature, witness the move-ments of the waves and the cool breeze. Water sports buffs and the children as well can enjoy the energy of the sea and the vibrant tropical marine ecosystem.

Jugo said the Nature Camp will enable residents and visitors to dis-cover a variety of indigenous flowers, plants and trees. Furthermore, it has a Fitness Trail, Kiddie Trail, Ziplines, Adventure Trail, Magma Trail and Adventure Tower.  

Certified beach bums will have a

blast using the three pools in Anvaya CoveInfinity Pool, Lounge Pool and Lap Pool.

For social activities and interac-tion, the Main Pavilion has the Wel-come Pavilion, Bamboo Café, Sam-bali Lounge, Function Rooms, Game Room, Library Lounge, Convenience Shop, Clinic, Lookout Tower, Tower Bar and Seahorse Kiddie Village.

The Parkway Vistas, Seascape Ridge and Sea Breeze Verandas are the communities that will give resi-dents of Anvaya Cove great bonding moments and quality living.

Located on the southern point, Parkway Vistas is a vast neighbor-hood of green development with 40 percent of the total site allotted to generous green spaces.

Seascape Ridge is at an elevated site that has more than 85 percent of the land dedicated to open spaces.

The 16 residential quads are separated 15 meters apart across a lush 4.5 hectares to ensure strong camaraderie. 

At 120 meters above sea level the Sea Breeze Verandas give the resi-dents an excellent view of the neigh-borhood’s 60 percent to 70 percent open spaces.

Last but not the least, the Anvaya Cove Golf and Sports Club provides the sporting aspect of sustainable liv-ing. The star is the par 72 all-weather sustainable championship course. The 82-hectare course enables aspir-ing and professional golfers to play throughout the year.  Furthermore, the golf course is designed with dif-ferent tee placements to ensure play-ing golf will also be a family affair.

The sports center amenities have an active pool complex, sports center café, fitness center, game center and sports center.

Bonding with family and nature at its best in Anvaya Cove

BusinessMirror

E1 | Wednesday, December 24, 2014 • Editor: Tet Andolong

By Rizal Raoul Reyes

WHENEVER Ayala Land Inc. (ALI) enters into unknown area for property develop-

ment, the results are simply marvelous.

 Lot sizes offered range from 400 square meters to 1,500 sq m, which start at P5 million.

“Since its launch in 2005, Anvaya Cove has had a warm and steady re-ception from the domestic and in-ternational second-home market. With the launch of the beach club in 2008 and the golf club in December 2013, the pace of our sales has even increased further,” Jugo said.

“This year, we have seen a 58-per-cent year-on-year growth spike in sales from real estate and golf shares worth P400 million, attributed to both domestic and foreign investors.”

Jugo said that the 29-lot Fairway Crest is the latest development of An-vaya Cove. It overlooks the golf course and provides a 180-degree view of the sea. It will be completed in 2016.

BSP allows record remittances to shelter peso

dec. inflatiOn seen easing tO 16-mO. lOw

By Bianca Cuaresma

The Bangko Sentral ng Pilipinas (BSP) on Tuesday expressed confidence inflation could slow down considerably in December and possibly average

just 2.4 percent, representing a 16-month low. Con-sumer goods prices during the month should, in no case, average in excess of 3.2 percent. In his monthly inflation forecast, central bank gov-ernor Amando M. Tetangco Jr. told reporters through a text message that inflation could range from as low as 2.4 percent to 3.2 percent in December. “The BSP’s latest assessment indicates further easing of price pressures, with December inflation projected to be within the range of 2.4 percent to 3.2 percent,” Tetangco said. The governor attributed the low infla-tion rate to the lower rice prices, reduced jeepney fares and power rates, as well as the continued rollback of oil prices. These developments “suggest a relatively manageable inflation picture,” according to Tetangco. The forecast projects lower inflation for December compared to the previous month, when this averaged 3.7 percent.

Repeat of port logjam imminentmanila POrts utiliZatiOn seen tO hit 107%, wOrse than at the height Of trucK ban

‘CaPIZ’ LaNTeRNs a holiday shopper looks at Christmas lanterns crafted from traditional materials like capiz shells in Manila on Monday. Christmas is one of the most important holidays in this predominantly Roman Catholic nation. AP/AAroN FAVilA

PROPeRTy e1

LIfe d1

See “Inflation,” A2

The plunge in oil should cut infla-tion, according to Moody’s December 11 credit statement. Price increases eased to an annualized 3.7 percent in November, the least in a year and below 2014’s average of 4.3 percent, data compiled by Bloomberg show. Inflation will average 4.2 percent this year and 3 percent in 2015, ac-cording to central bank forecasts. The current-account surplus will total $6.6 billion in 2014 and $6.8 billion next year, Tetangco said in a November 21 briefing in Manila. Real yieldsPhIlIPPINe 10-year notes offer a

real yield of 0.7 percent after account-ing for consumer-price increases, compared with 1.7 percent in Indo-nesia and 1.6 percent for Thailand, data compiled by Bloomberg show. The central bank raised its bench-mark rate twice this year to 4 percent. “The recent ratings upgrade by Moody’s highlights the positive struc-tural growth story that we are see-ing,” Dominic Bunning, a hong-Kong based currency strategist at hSBC, the most-accurate forecaster for the peso in Bloomberg surveys in the four quarters ended September, said in a December 18 e-mail. “This means it is unlikely we will see significant out-flows even if negative real rates will make it harder to attract inflows.”

The Philippine currency is still vulnerable to dollar strength as the Federal Reserve readies to raise interest rates, according to BDO Unibank Inc.

‘Still vulnerable’STRaTegISTS forecast the peso will weaken 2.1 percent to 45.50 a dollar next year, from 44.56 as of 10 a.m. in Manila, the median estimate in a Bloomberg survey shows. “The Philippines, despite all of our good fundamentals, is still vulnerable to external factors and one of them is a rising dollar,” Jonathan Ravelas, chief market strategist at Manila- based BDO Unibank, said by phone on December 19. Bloomberg News

SUNRISE SUNSET

6:17 AM 5:32 PM

MOONRISEMOONSET

6:54 PM 7:05 AM

TODAY’S WEATHERMETROMANILA

LAOAG

BAGUIO

SBMA/CLARK

TAGAYTAY

LEGAZPI

PUERTOPRINCESA

ILOILO/BACOLOD

TUGUEGARAO

METROCEBU

CAGAYANDE ORO

METRODAVAO

ZAMBOANGA

TACLOBAN

3-DAYEXTENDEDFORECAST

3-DAYEXTENDEDFORECAST

CELEBES SEA

LEGAZPI CITY23 – 30°C

TACLOBAN CITY25 – 31°C

CAGAYAN DE ORO CITY

METRO DAVAO25 – 33°C

ZAMBOANGA CITY24 – 35°C

PHILI

PPIN

E ARE

A OF R

ESPO

NSIB

ILITY

(PAR

)

SABAH

PUERTO PRINCESA CITY 25 – 32°C METRO CEBU

25 – 32°C

ILOILO/BACOLOD

23 – 31°C

25 – 32°C

25 – 31°C 24 – 30°C 25 – 33°C

24 – 30°C 23 – 29°C 24 – 30°C

24 – 32°C 23 –31°C 24 – 32°C

25 – 32°C 25 – 33°C 24 – 33°C

24 – 34°C 25 – 35°C 25 – 34°C

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

Weekday hourly updates: 6:00 AM on Balitaan, 7:00 AM & 8:00 AM on Good Morning Boss!, 9:00 AM, 10:00 AM, 11:00 AM, 12:00 PM, 1:00 PM

on News@1, 3:00 PM, 4:30 PM, and 6:00 PM on News@6

www.panahon.tv

@PanahonTV

DECEMBER 24, 2014 | WEDNESDAY

HIGH TIDEMANILA

SOUTH HARBOR

LOW TIDE

6:09 AM-0. 32METER

TUGUEGARAO CITY 20 – 27°C

LAOAG CITY 22 – 30°C

TAGAYTAY CITY 21 – 29°C

SBMA/CLARK 24 – 32°C

23 – 32°C 24 – 32°C 24 – 32°C

20 –28°C 20 – 28°C 19 – 27°C

22 – 30°C 21 – 30°C 21 – 30°C

15 – 23°C 14 – 24°C 14 – 24°C

21 – 29°C 21 – 29°C 22 – 29°C

23 – 30°C24 – 31°C 23 – 30°C

24 – 32°C 25 – 32°C

24 – 32°C24 – 31°C 24 – 32°C

24 – 33°C25 – 32°C 24 – 32°C

Partly cloudy to cloudy skies withisolated rain showers and/or thunderstorms

Cloudy skies with rain showersand/or thunderstorms.

HALF MOON

2:31 AMDEC 29

BAGUIO CITY15 – 24°C

24 – 31°C

NEW MOON

9:36 AMDEC 22 10:17 PM

1.22 METER

DEC 26FRIDAY

DEC 27SATURDAY

DEC 25THURSDAY

DEC 26FRIDAY

DEC 27SATURDAY

DEC 25THURSDAY

Light rains

Partly cloudy toat times cloudywith rainshowers

(AS OF DECEMBER 23, 5:00 PM)

DIFFUSED TAIL-END OF A COLD FRONTAFFECTING EASTERN SECTION OF

CENTRAL AND SOUTHERN LUZON. NORTHEAST MONSOON

AFFECTING NORTHERN LUZON.

METRO MANILA23 – 32°C

Tail-end of a cold front is the extended part of the boundary, which happens when the cold air and warm air meet. This may bring

rainfall and cloudiness over a�ected areas. It is felt at the northern hemisphere winter season.

Northeast Monsoon locally known as “Amihan”. It a�ects the eastern portions of the country.

It is cold and dry; characterized by widespread cloudiness with rains and showers.

Inflation. . . Continued from A1

Pope. . . Continued from A8Budget. . . Continued from A8

BusinessMirror [email protected] Wednesday, December 24, 2014A2

NewsContinued from A1

Continued from A1

He added the funding program was also designed to enable the Department of Social Welfare and Development to provide assistance to some 4.3 million families under the so-called Pantawid Pamilya ng Pilipino Program and for the Department of Tourism to reach its target to increase international tourist arrivals by 20 percent. Budget Secretary Florencion B. Abad said the enacted General Appropriations Act of 2015 is 15.1 percent higher than the current year’s budget and focuses more on strengthening fiscal reforms and post-disaster rehabilitation and climate change. “We’re pouring even more investments into the administration’s antipoverty and economic growth programs, as well as strengthening governance reforms we’ve helmed so far,” said Abad in a statement on Tuesday. “We remain optimistic about our growth prospects in 2015, especially with this budget supporting the country’s

papal butler to steal incriminating docu-ments and leak them to a journalist. Their report is known only to the two popes. Francis had some zingers: How the “terrorism of gossip” can “kill the repu-tation of our colleagues and brothers in cold blood.” How cliques can “enslave their members and become a cancer that threatens the harmony of the body” and eventually kill it off by “friendly fire.” How some suffer from “spiritual Al-zheimer’s,” forgetting what drew them to the priesthood in the first place. “The Curia is called on to always im-prove itself and grow in communion, holiness and knowledge to fulfill its mission,” Francis said. “But even it, as any human body, [and] can suffer from ailments, dysfunctions, illnesses.” Francis, who is the first Latin American pope and never worked in the Italian-dominated Curia before he was elected, has not shied from complaining about the gossiping, careerism and bureaucratic

power intrigues that afflict the Holy See. His 2013 Christmas address cast a spot-light on such sins. But a year into his re-form agenda, Francis seemed even more emboldened to make clear to the prelates themselves that superficial displays of change aren’t what he is looking for. “This is a speech without historic precedent,” church historian Alberto Melloni, a contributor to Italian daily Corriere della Sera, said in a telephone interview. “If the pope uses this tone, it’s because he knows it’s necessary.” Melloni noted that until Francis was elected, the Vatican bureaucracy largely answered to no one, saying “an entire generation of the Curia ran it as if they were pope.” Saint John Paul II was too busy traveling the world, and later too sick, to pay attention to administrative details, and Benedict left the minutiae of running a government to his deputy, later determined to have been part of the problem. AP

BSP allows record remittances to shelter peso The slow movement of cargoes, he said, would result in a drastic increase in yard utilization, which would breach the full capacity of the two ports combined. Port utilization will be at 107 per-cent by January 5 should the measures addressing the slow withdrawal of car-goes fail. “This is worse than what we had at the height of the Manila truck ban when congestion was at 105 percent,” Ordoñez lamented. Over the weekend, the combined yard utilization at the two Manila Ports—composed of the Manila Inter-national Container Terminal and the Manila South Harbor— fell below the 80-percent threshold set by the Cabi-net Cluster on Port Congestion, when utilization reached 77 percent. However, on Sunday, yard utilization went back to 86 percent after only 1,029 twenty-foot equivalent units (TEUs) were withdrawn from the average of 6,500 to 7,000 TEUs daily gate outs. His group, the official said, is still try-ing to save the gains that the govern-ment and the private sector achieved over the past month by issuing a plea of quick action on several fronts. One of the plans is to ask the Bureau of Internal Revenue to streamline the accreditation to eliminate seven un-necessary and cumbersome data re-

quirements for the issuance of Import Commodity Clearance that will allow a speedier flow of goods. The group is also asking shipping lines to find space for the empty contain-ers that clog the movement of goods. “Shipping lines should invest in more container yards,” he said. Ordoñez said his group is also calling on government agencies, banks and the businesses to remain open during the holidays to ease the expected spike in port utilization. Importers and cargo owners, mean-while, should keep pace with the speed at which containers are piling at the port and stop operations only on Christmas Eve, Christmas Day, New Year’s Eve and New Year’s Day, the businessman added. “We are hoping, if it is possible, for the government to decrease the rates during holidays so that importers will be encouraged to operate during breaks and holidays,” Ordoñez noted. Not would the congestion at the ports worsen during the holidays, it is also expected to rise during the visit of Pope Francis on January 15, 16 and 19, as major roads and ports will be closed to make way for the Roman Pontiff. Earlier, the Philippine Ports Authority (PPA) asked cargo owners to withdraw their cargoes from the Manila-based ports earlier than scheduled to ease the expected rise during the holidays.

PPA General Manager Juan C. Sta. Ana said the nine-day holiday from December 24 to 28 and from December 30 to January 4 will definitely clog the ports with incoming import cargoes seen to bring yard utilization back “to near-congestion level.” He explained that the private sec-tor will play a key role in sustaining the decongestion effort of the government, otherwise, all measures implemented will be flushed down the drain due to the holidays. Port operators will be operating 24 hours daily except on New Year’s Day, as vessels continue to come in even during this holiday season, while the customs bureau is likewise crafting operational measures to guarantee it can clear car-goes even during the holidays. The Cabinet Cluster on Port Con-gestion and the shipping lines led by the Association of International Ship-ping Lines met on Tuesday “to come up with a win-win solution in the re-duction of empty containers currently piled up in different areas in and out of the Metro Manila.” The report is yet to be released as of press time. A study commissioned by the joint House Committees on Transporta-tion and Metro Manila Development showed that the economy loses P2.5 billion daily due to the port congestion.

With Jae Denise Adolfo

Repeat of port logjam imminent

S h o u l d i n f l a t i o n p ro ve l o we r i n December, the rate of change in prices would approximate the lowest it has achieved in August last year when inflation averaged only 2.1 percent. Should inflation hit the upper end of Tetangco’s forecast, inflation should still be

lowest in 14 months when it averaged 2.9 percent in October last year. The forecast range of inflation for December also guarantees a within-target annual inflation for the year. The BSP anticipates annual inflation ranging from 3 percent to 5 percent this year. In the first

11 months, inflation averaged 4.4 percent When it happens, this will be the sixth consecutive year that the central bank was able to push inflation within the target range. For next year until 2016, the central bank adopted a lower inflation target range of just 2 percent to 4 percent.

[email protected] Editor: Dionisio L. Pelayo • Wednesday, December 24, 2014 A3BusinessMirrorThe Nation

This was the reaction of Justice Secretary Leila de Lima on the filing of petitions for writ of amparo by relatives of NBP inmates Willy Sy, Michael Ong and Noel Martinez before the Court of Appeals (CA), questioning why their relatives and lawyers are barred from visiting them at the National Bureau of Investigation (NBI) detention facility, where they have been transferred following December 12’s raid at the NBP that yielded various contraband. De Lima said the temporary prohibition on visitation is intended to cut off the in-mates from the outside world following the discovery that they managed, while in jail, to communicate possibly with cohorts in continuing their illegal trade, through the illegal entry of communications equipment in the state penitentiary. The inmates’ relatives also questioned the authority of the department to order

their transfer to the NBI, to which de Lima said that the DOJ, as administrator of the Bureau of Corrections (BuCor) and the NBP, has enough powers to fulfill its mandate. De Lima added that the administration of the correctional system is under the DOJ. “We have enough prerogatives and powers to fulfill our mandate. We are confident that there is enough basis for the actions taken,” she said. Based on intelligence reports, de Lima said the current situation at the NBP is “exceptional,” and the DOJ must really take “a decisive action to remedy the situation.” On Monday Marilou Golloso Martinez Ra-guro, sister of Noel Martinez, filed a petition for writ of amparo before the CA. The relatives of the two other inmates followed suit. In her 21-page petition with prayer for the issuance of a temporary protection order (TPO), Marilou branded as “baseless and un-

FIVE members of a crime group were arrested on Tuesday by a joint police team that raided their hideout in Taguig City.

Director Benjamin Magalong, Criminal Inves-tigation and Detection Group (CIDG) commander, identified the suspects as Roger Pantas Ortiz, Abdullah Banog, Ronnie Imbalgan, Jun-jun Pan-day and Dodoy Hubero Tuling. He said the five, who are members of the Sahit Utto crime group, were arrested in the raid that was conducted by the CIDG, the National Police Anti-Illegal Drugs Special Operations Task Force and the Special Action Force at around 5 a.m. at Block 1, Lot 16, C6 Road, Barangay Napindan, Taguig City. Their arrest was covered by four search warrants against Mads Utto and three others that were issued by a Taguig court. Magalong said the group is involved in gun-running, gun-for-hire activities, drug traffick-ing and robbery-holdup, and was operating in Pasig and Taguig cities; Taytay, Rizal and nearby areas. During the operation, the policemen seized methamphetamine hydrochloride, or shabu, worth P1 million, an improvised shotgun, two caliber .45 pistols with magazines and ammu-nition, drug money worth P6,200 and different identification cards. The raiders also recovered a badge issued to a deceased policeman which was allegedly used in the group’s illegal activities. The suspects are facing charges for violation of Republic Act (RA) 9165, or the Comprehensive Dangerous Drugs Act, and RA 10591 or the Com-prehensive Firearms and Ammunition Regulation Act. Rene Acosta

Suspension of visitation rights at NBP only temporary–DOJ THE Department of Justice (DOJ) on

Tuesday said suspension of visitation rights at the New Bilibid Prison (NBP)

is only temporary.

Cops nab 5 gangmen

lawful” his brother’s transfer to the NBI, and sought his immediate return to the NBP. She added that it violates Martinez’s con-stitutional  rights, including rights to counsel and not to be held incommunicado as pre-scribed  in Article III (Bill of Rights), Sections 12 and 14 of the 1987 Constitution, in rela-tion to the rule on the writ of amparo. The petitioner recounted that a day after the December 15 raid by a combined team from the NBI, Philippine Drug Enforcement Agency and the National Police-Special Ac-tion Force, her lawyers—Ferdinand Topacio and Joselito Lomangaya—went to the NBI headquarters to check on her brother’s con-dition, but were not allowed entry. On December 17 the petitioner said the lawyers went to see her brother again, but were prevented anew on ground that de Lima had standing orders which prohibited any “visit of Martinez and his companion-inmates without clearance from her.” She added that de Lima ignored a letter sent by Topacio and Loman-gaya to her on December 18. “No discretion is, therefore, left with the secretary of justice, much less with the agen-cies under here, herein the Bureau of Correc-tions and the NBI, to transfer Noel to the NBI

facility. This only highlights the utter impro-priety and illegality of respondent’s manner of violating Noel’s right,” the petition added. The petitioner sought the issuance of a TPO to compel the NBI to allow   his rela-tives, friends and even his lawyers visitation hours  at the NBI. The petitioner noted that her brother was not part of the alleged illegal-drugs trade inside the NBP, and that he was not even convicted of illegal-drugs charges but for kidnapping. Aside from Martinez, the other inmates re-moved from the NBP are Eugene Chua, Chua Sam Li, Vincent Sy, George Sy, Joel Capones, Herbert Colangco, Peter Co, Amin Imam Bo-ratong, Clarence Dongail, Tom Chua, Rommel Capoines, Jojo Baligad, Willy Chua, Michael Ong, Jacky King Sy, Willy Sy and Herman Agojo. Topacio said that aside from Martinez, the same “rights violation” is also happening to his other clients, namely, Willy Sy, Agojo and Ong.  “The relatives and friends of the said in-mates have been trying to visit them since last week, but were turned away by armed elements of the NBI, who simply said that no visitors were allowed,” he said adding that they will also file the writ of amparo for the three on Tuesday. PNA, Joel R. San Juan

BusinessMirror [email protected] A4

Economy

By Marvyn N. BenaningCorrespondent  

party-list rep. Neri Colmenares of Bayan Muna has accused two water concessionaires of plot-

ting to collect their so-called foreign- exchange losses from millions of con-sumers through an increase in tariffs on January 5.

Colmenares said the threat to inflict higher rates for a commodity that is uni-versally and naturally available comes in the heels of the doubling of fares for the light rail transit lines 1 and 2, and the Metro rail transit line 3 systems by January 4.

the lawmaker slammed these in-creases and wondered if the aquino ad-ministration would also impose higher electricity rates and additional taxes aside from raising the rates for bureau-cratic services.

Colmenares said the water firms ap-parently sensed that it must go along with the fare increases to be imposed by the Department of transportation and Communications.

Both increases would affect the 14 million residents of the National Capi-

tal region and transients who work in the metropolitan area.

Colmenares feared that, as aquino becomes a lameduck, higher water, elec-tricity tariffs and more taxes would be approved to benefit big business firms that supported the regime.

the legislator said the proposed water-rate hike that calls for an in-crease in foreign-currency differential adjustment (FCDa) essentially frees the two water concessionaires from absorbing foreign-exchange losses that consumers are not responsible for.

“in other businesses, they are the ones who absorb bad business decisions, like FCDa, and pay their own taxes, but these water concessionaires are raking in billions by fooling us. they even pass to consumers losses due to changes in foreign-exchange rates. But, in this case, the concessionaires borrow from foreign creditors without any qualm, knowing that they are insulated from the risk or-dinary borrowers take because they’re allowed to pass on their forex losses to their consumers. it is like having their cake and eating it, too. Sa kuryente nga e nagrereklamo tayo sa paniningil sa atin ng systems loss, pero dito mismong buwis na

nga ng kinita nila ang sinisingil pa sa atin,” Colmenares argued.

“this shows that privatization is wrong and the practice of automatic pass-through of forex losses should not be allowed by the government,” he stressed

the progressive solon also hit the practice of Manila Water Co. (MWC)and Maynilad of passing their income taxes, value-added tax, documentation stamps and other taxes to consumers, in effect making the consumers subsidize them.

He described this as an “abhorrent practice” that proves government has no monopoly of corruption, adding that this is “unjust corporate enrichment.”

according to the Water for the people Network, this practice has been going on for seven years and has cost consumers an “unconscionable” p15 billion.

“this is highly questionable and this contract is a sweetheart deal detrimen-tal to the interest of the government and the people and must be voided. this practice must be stopped, especially since both companies are public utilities, whose supposed main principle is public service and not profit. the Metropoli-tan Waterworks and sewerage system

(MWss) regulatory Office should act now to end this practice and have the water concessionaires refund this to consumers,”Colmenares insisted.   

“We have filed House resolution 39 to investigate this practice so that it will be stopped and never happen again. From the investigation, we will craft a law that will prohibit this practice, of only allowing profit-hungry businesses to serve as public utilities,” he added.

Colmenares said that such schemes have allowed MWC to increase water rates by 600 percent since 1997, when the MWss was privatized. “in the first place, the MWss and MWC must first refund billions of pe-sos it collected from the public for still-unimplemented water projects before it could increase water charges. among these projects are the p5.4-billion an-gat Water reliability and the p45.3-billion laiban dam projects. Govern-ment has to stop this practice of making the people shoulder all the risks and losses of public utilities and awarding contracts to companies whose main interest is profit, meaning guaranteed profit and protected abuse instead of public service,” Colmenares said.

Data from the latest External trade report released by the phil-ippine statistics authority (psa) on tuesday showed the country’s total imports reached $5.2 billion in October 2014, from $4.8 billion in October 2013. “the seasonal uptick in consumer spending during the last quarter of the year, coupled with cheap oil prices and lifting of the truck ban in Manila, starting in mid-september, supported imports growth for the period,” socioeconomic planning secretary arsenio M. Balisacan said. the National Economic and De-velopment authority (Neda) also said the country’s import growth recovered in October 2014 on the back of a double-digit increase in the import of consumer goods and mineral fuels and lubricants.  Neda said this was a significant rebound from a 1.2-percent con-traction in september 2014 and an 8.2-percent decrease in October 2013. it added that total imports re-versed its trend as the three-month

moving average growth rate for the month picked up to 2.4 percent from four consecutive months of contrac-tions since June 2014. the philippine imports of con-sumer goods amounted to $959.2 million in October 2014, higher by 35.8 percent from $706.1 million in the same period last year.  “strong consumer goods imports may indicate that domestic con-sumer demand remains strong in the fourth quarter. the recovery in semi-processed raw materials and intermediate goods also bodes well for domestic economic activity and exports,” said Balisacan, who is also Neda director general. Neda said Vietnam led the re-gion with 12.6-percent imports growth and Malaysia at third, with 6.1 percent.  Other countries experienced a decline, such as Hong Kong (-1.2 percent), taiwan (-1.4 percent), in-donesia (-2.2 percent), republic of Korea (-3 percent), thailand (-4.9 percent), Japan (-6.7 percent) and

Wednesday, December 24, 2014 • Editors: Vittorio V. Vitug and Max V. de Leon

singapore (-7.5 percent). “the philippines also recorded the second highest annual increase in im-ports among select economies in the East and southeast asian regions for October 2014,” Balisacan said. However, despite the recovery in import growth in October, the country again recorded a trade defi-cit at the start of the fourth quarter of 2014. the psa said the country’s balance of trade in goods recorded a deficit of $56 million. this was a rever-sal from the trade surplus recorded in september 2014 (at $201 million) and October 2013 at $183 million.  the “losers,” in terms of import growth in October, were transport equipment (with a contraction of

11.9 percent) and electronic products (with a contraction of 11.3 percent).  Further, the import value of capi-tal goods fell again on an annual basis by 1.6 percent in October 2014 (from $1.5 billion last year to $1.48 billion).  Neda also said imported raw materials and intermediate goods reached $1.87 billion in October 2014, slightly lower by 0.8 percent than $1.89 billion in the same month last year.  “in the near-term, the accelera-tion of the manufacturing sector could support stronger imports of raw materials and intermediate goods in the coming months, in time for the surge in domestic demand during the peak of the holidays to-

ward the year-end,” Balisacan said.   On the other hand, the value of imported mineral fuels and lubri-cants posted a double-digit growth of 18.7 percent to reach $852.8 mil-lion in October 2014 from $718.3 million in October 2013, possibly boosted by the downward trend in the international prices of oil.  “the business sector and oil-dependent industries will likely continue to take advantage of the cheap oil prices as this significant-ly reduces cost of operations. the manufacturing, transportation and energy subsectors, in particular, are likely to benefit. the government should ensure that these benefits are appropriately passed on to con-

sumers,” the Neda chief said.  the country’s top 3 import sourc-es in October were the people’s re-public of China (with a share of 16.4 percent) followed by Japan, including Okinawa (with an 8.6-percent share) and taiwan (with 7.9 percent.)  imports from China amounted to $851.84 million. this was an increase of 35.2 percent from $630.09 mil-lion in October 2013. Japan imports for October 2014 reached $448.13 million, a 5.2-percent growth from $425.87 million in October 2013. products imported by the country from taiwan amounted to a total of $411.58 million. it increased by 6.9 percent from its October 2013 value of $384.85 million.

Holiday spend, cheap oil boost PHL imports

Holiday spending, cheap oil prices and the lifting of the truck ban in Manila boosted

the country’s imports growth to 7.5 percent in october 2014. 

Tougher fireworks regulations for health and safety of public proposed

Lawmaker slams looming water-rate hike

By Cai U. Ordinario

aMEasurE providing tougher regulation and control of firework and pyrotechnic

products sold nationwide, especially during the Christmas and New year revelry, has been filed in the House of representatives.  House Bill (HB) 4434, or the “Fire-cracker regulation act of 2014,” au-thored by Nationalist people’s Coali-tion rep. sherwin Gatchalian of Va-lenzuela City, senior vice chairman of House Committee on Metro Manila Development, seeks to ensure a safe environment for Filipinos, especially

children who are most vulnerable to firecracker-related injuries, by amending certain provisions of re-public act 7183, or an act regulating the sale, Manufacture, Distribution and use of Firecrackers. the bill mandates local govern-ment units to designate pyrotechnic zones in their own locality to avoid fire and injuries. the bill will also require fireworks dealers to submit the names and ad-dresses of their affiliates to the phil-ippine National police’s Firearms and Explosive Office (pNp-FEO) upon

securing business permit. a maximum of p5,000 will be im-posed as limit for a single purchase of any firecracker or pyrotechnic device, excluding those with permit from pNp-FEO, the measure provides. the bill will also prohibit selling fireworks to any one below 18 years old, while requiring children, who will use firecrackers, to be under the strict supervision of their guardians. those who will fail to secure their dealer’s permit through legal means will be fined p100,000 to p500,000, or an imprisonment from six months to three years, the bill said. Dealers found guilty of selling fireworks to minors will be fined p100,000 and have their permit revoked. Meanwhile, parents found guilty of purchasing fireworks for their children will be fined p10,000. according to the Department of Health (DOH), there were 1,018 fireworks-related injuries from De-cember 21, 2013 to January 6, 2014. almost 1,000 of these were due to fireworks, two from firework inges-

tion and 19 from stray bullets. the DOH maintained that the use of firecrackers should be allowed only as an activity managed by respective local governments and only in desig-nated areas within their community. HB 4434 is pending before House Committee on public Order and safety. “Every year, we endure from the pollutants caused by the use of fire-crackers to welcome the new year; we see news flashes of countless in-juries, especially of the hapless chil-dren. until when should we allow this cycle of peril to our health and environment?” Gatchalian asked in his bill’s explanatory note. Gatchalian noted the need for the government to do more about fireworks that are also considered as hazards to public safety. “these amendments do not en-tirely do away with time-honored merry-making, but enforces to pro-vide stricter regulations in an effort to protect our people,” he said. the health department on tues-day appealed to parents to exercise

“extreme vigilance and caution” and  not to allow their children to use firecrackers during the holiday season, especially in welcoming the new year. Despite the yearly warning given by the DOH, statistics showed that children aged 6 to 10 are most af-fected by firecracker-related injuries, and majority (67 percent) of injuries happened between December 31 and January 1.  “Every year, despite advertise-ments and campaigns intended to protect the children from fireworks injuries, the profile of cases remain the same,” acting Health secretary Janette loreto-Garin said. the DOH surveillance report showed that, out of 997 injuries due to fireworks, 25 percent, or 250 cas-es, were children less than 10 years old. One reported death due to fire-works was a 12-year-old male, who sustained severe head injury caused by mixed firecracker powder. Garin said adults, who see chil-dren playing firecrackers, should seize the firecrackers, stow them

someplace no longer accessible to children, repeatedly discourage them from buying firecrackers, and edu-cate them on firecracker injuries. the last surveillance report showed that the usual body parts injured were hands (55 percent), eyes (15 percent), legs (11 percent), head (9 percent) and forearms/arms (8 percent). amputation was necessary to 25 cases of blast wounds. “imagine the rest of a child’s life without hands, arms, legs, or in-jured body parts after losing them to fireworks.… Not only is self-esteem drastically diminished, productiv-ity at school… will also be greatly affected,” the DOH chief said. she added that the fun from light-ing up firecrackers is as fleeting as the sparks of the firecrackers, but serious injuries and amputations caused by firecracker explosions have life-changing consequences.  “Exploding or lighting up fire-crackers is an extreme gamble on one’s future,” Garin said as she em-phasized how important life is. Jovee Marie N. dela Cruz and Claudeth Mocon- Ciriaco

christmas season exodus Hundreds of passengers bound to the provinces for the holidays flock at the Araneta Center Bus Terminal in Cubao, Quezon City, on Monday. PNA

briefspalace declares 5-day

weekend holiday for pope’s visitMalacañang has declared a five-day weekend holiday in Metro Manila when Pope Francis visits the country next month. By authority of President aquino, Proclamation 936 was signed by Executive Secretary Paquito Ochoa on Monday declaring January 15, 16 and 19, 2015, as “special [non-working] days” in the national capital Region. Ochoa said in view of the visit of Pope Francis, who sits as head of state of the Vatican city, President aquino deemed it fit to declare the five-day weekend holiday, enabling predominantly catholic Metro Manila residents to join welcome rites for the visiting church leader. Butch Fernandez

dpwh issues guidelines for river-dredging operationscOnSidERing the importance of our waterways, Public Works Secretary Rogelio l. Singson issued department Order 139, Series of 2014, setting the guidelines on all river-dredging activities for flood-control projects and quarrying purposes.

“We have to implement our flood-control projects in a way that we can achieve positive impact and prevent damage to the environment,” Singson said.

To avoid ecological damage from quarrying activities, project sites shall be required to undergo series of soil investigation, which includes actual on-set bathymetric, topographic and hydrographic surveys, in accordance with the department’s design guidelines criteria and Standards.

Proper soil investigation and analysis shall also be undertaken to prevent changes in stream morphology. Proper environmental clearances, such as certificate of non-coverage or environmental compliance certificate, shall also be secured.

detailed dredging plan and design report must be, likewise, submitted to the concerned department of Public Works and Highways offices in accordance with its delegated authorities issued by the department of Environment and natural Resources (dEnR).

Further, projects shall comply with the existing rules and regulations on Water code of the Philippines and Philippine Mining act of 1995, among others, before the approval of works.

The dPWH Project Management Office, including all regional and district offices, is directed to comply in order to ensure that waterways’ morphology across the country will not be compromised with the flood-control projects, dredging and quarrying operations.

local governments are also encouraged to comply with the dEnR and the dPWH guidelines before issuing quarrying operations on rivers and waterways. PNA

dilg grants p334.5m to 6 metro lgus to fund urban poor housing projectsinTERiOR Secretary Manuel Roxas ii said on Tuesday the department of the interior and local government has granted six local government units (lgUs) in Metro Manila a P334.5-million seed fund for socialized housing for the urban poor.

"it’s more than just building houses. We’re building communities. This isn't a political promise but a moral promise made by President aquino,” Roxas said during the signing of a memorandum of agreement (MOa) on the project at the Baseco Evacuation center compound in Manila, together with Mayor Joseph Estrada, marking the culmination of the Urban Poor Solidarity Week celebration under the One Safe Future program. President aquino has placed Roxas in charge of the relocation of squatter dwellers living in high-risk areas in Metro Manila by virtue of Memorandum Order 57 signed last year. PNA

[email protected] Wednesday, December 24, 2014 A5BusinessMirrorEconomy

DOLORES, Eastern Samar—President Aquino assured Typhoon

Ruby-affected residents that the government is “building back better and safer” communities to avoid mistakes during disasters. In a brief launch of post-Ruby early-recovery program, Mr. Aquino said the national government is trying to make a balance between reconstruction and ensuring safety of families. “Nandito tayo ngayon para tugunan ang inyong pangangailangan. Tutulong po ang gobyerno para maibalik ang mga tahanang nasira, pero sigurohin natin na ang mga pamilya ay nasa ligtas na lugar,” the President told a crowd of about 1,000 residents in this town. “Hindi ’yung itatayo tapos sa pagdating ng bagyo, sira ulit tapos tayo na naman. Ang hinahabol natin

ay maitayo ng maayos, ’yung mas ligtas para hindi laging sira, ayos, sira at ayos.” Aside from housing, Mr. Aquino said the government will also plant mangroves as first line of defense against storm surges and big waves. Mayor Emiliana Villacarillo said the local government is not only pushing for transfer of families in coastal communities, but also those residents dwelling near riverbanks. Mr. Aquino brief ly visited this town, some 66 kilometers north of Borongan City, to hand over P45.91- million checks for cash-for-work program to Villacarillo. It will benefit 11,772 persons at P250 each for 15 working days. He also led the ceremonial distribution of hygiene kits and shelter fixing kits to selected residents of the town as part of the

early recovery program launching. Andrea Oraller, 45, of Barangay 9, a beneficiary of shelter fixing kits, thanked President Aquino for the assistance. “Now we can sleep soundly at night without worrying that we would get wet when it rains. We are very thankful, although this is not enough,” said Oraller, a village official. A large part of their roof was blown away by Ruby’s powerful but slow moving winds. “Dapat magawa kaagad ang mga bahay hindi dahil Pasko kundi kailangan mabawasan ang sakripisyo at pagtitiis ng ating mga kababayan,” the President said. Mr. Aquino vowed to distribute emergency-shelter assistance of P30,000 for a family with totally damaged house and P10,000 for a household with a partially damaged house. PNA

Aquino reiterates ‘building back better and safer’ scheme

The PPP Center said the list in-cludes nine PPPs, the largest of which is the P374.5-billion-worth Makati-Pasay-Taguig Mass Transit System Loop (MTSL) Project. The MTSL mass-transit project will connect Bonifacio Global City, the Makati Central Business Dis-trict and the Mall of Asia area in Pasay City. The proposed new rail line has a route length of approxi-mately 12 kilometers. Rolling out projects, under the PPP process, means a project will already enter the procurement or bidding stage. “More or less nine muna, as of to-day. But we have ongoing feasibilities

that are nearing completion so by first quarter next year, we’re hoping we would be able to go to ICC naman for the Batangas-Manila [Natural Gas] pipeline and the others in our pipeline,” PPP Center Executive Di-rector Cosette V. Canilao said. The other projects on the list include the P177.22-billion North-South Railway Project (South Line); the P50.18-billion Regional Prison Facilities through PPP project; and the P35.4-billion Cavite Laguna Ex-pressway (Calax) Project. The list also include the P25.6- billion Nlex-Slex Connector Road; the P18.99-billion Davao Sasa Port Modernization Project; the P19.33-

billion Motor Vehicle Inspection System (MVIS) Project; the P1.16- billion Civil Registry System-IT Project (Phase II); and the P400- million Tanauan City Public Market Redevelopment Project. Meanwhile, the PPP Center also said that at least 12 PPPs worth P286.42 billion are currently being bidded out by the government. Canilao said bidding out 12 PPPs all at the same time was unprecedented. She said the gov-ernment hopes these projects and other PPPs will be bidded out suc-cessfully next year. The largest PPP that is current-ly undergoing procurement is the P122.8-billion-worth Laguna Lake-shore Expressway-Dike Project. The project aims to mitigate flooding in the western coastal communities along Laguna Lake— from Bicutan, Taguig, in Metro Manila through Calamba to Bay in Laguna. It will also help decongest roads going to and from Metro Ma-nila by creating an alternate route

to and from Laguna. Other PPPs being bidded out are the P40.57-billion Davao Airport Op-erations, Maintenance and Develop-ment Project; the P30.4-billion Iloilo Airport Operations, Maintenance and Development Project; the P24.4-billion Bulacan Bulk Water Supply Project; and the P20.26-billion Ba-colod Airport Operations, Mainte-nance and Development Project. The list also includes the P18.72- billion New Centennial Water Source-Kaliwa Dam Project; the P14.62-billion Laguindingan Airport Operations, Maintenance and Development Proj-ect; and the P5.81-billion Puerto Princ-esa Airport Operations, Maintenance and Development Project. Projects to be bidder out also include the P4 billion Integrated Transport System-South Termi-nal Project; the P2.5-billion Inte-grated Transport System-South-west Terminal Project; and the P2.34-billion New Bohol Airport Operations, Maintenance and De-velopment Project.

PHL to roll out 9 PPP projects worth P702.78 billion next year

By Cai U. Ordinario

The national government is keen on rolling out P702.78 billion worth of public-private

partnership (PPP) projects next year.

By Joel R. San Juan

THE Department of Justice (DOJ) has reiterated its legal opinion issued in 1995, which

held that local governments have no power to issue business permits or licenses to agencies and instrumen-talities of the state, which include the Philippine Charity Sweepstakes Office (PCSO). Justice Secretary Leila de Lima made the reiteration, after Negros Occidental Assistant City Legal Offi-cer lawyer Bimbo Lavides sought the justice department’s legal opinion on whether Bingo Milyonaryo (BM) can operate without valid mayor’s or business permit, and whether its betting agent can operate without a betting station in the city. Furthermore, Lavides asked the DOJ what remedies the city may avail itself of in case it does not want the BM to operate within its jurisdiction. BM is a lottery-like game run by the PCSO that has been on the limelight of controversy following allegations that it is being used as a front for illegal-numbers game,

like jueteng and masiao. De Lima, however, refused to render an opinion on the issue, noting that the resolution of the issue would require interpreta-tion and examination of the per-tinent provisions of Republic Act 7160, or the Local Government Code of 1991, which falls within the jurisdiction of the Oversight Committee, which is mandated by law to promulgate the rules and regulations necessary for the

implementation  of the said code, and the Department of the Interior and Local Government (DILG), the lead agency designated to imple-ment the Code. Nevertheless, de Lima reiterated the department’s Opinion 74 for La-vides’s “information and guidance.” In the said legal opinion, the DOJ held that while Sections 447 and 458 of the Local Govern-ment Code of 1991 give the LGUs the power to regulate businesses

within their respective territories and impose license fees, that power cannot be exercised upon the na-tional government, its agencies and instrumentalities. “...Its [the state] duly appointed sales agents are as you have pointed out, mere extensions of the PCSO, and should, like the PCSO, be also considered exempt from the licens-ing authority of the LGUs where they operate,” the 1995 DOJ legal opinion stated.

State agencies exempted from local licenses, permits–DOJ

By Claudeth Mocon-Ciriaco Correspondent

THE Department of Health (DOH) reminded the public to shop wisely for “safe” toys

to give as gifts this holiday season. “Aside from being appealing and suitable for a child’s age, toys should be safe from choking, sharp points or edges, especially for young children,” DOH Spokesman Dr. Lyndon Lee Suy said. A safe toy is defined by the DOH as “one that is suitable to the child’s physical capabilities and mental and social development; is appealing and interesting; well-constructed, durable and safe for the child’s age.” For newborns to one year old, the DOH suggests toys such as rattles, large, brightly colored balls, washable stuffed dolls or animals

with big, clearly defined faces; for two to three years old, or toddlers, the recommended toys are wooden animals, dolls, sturdy kiddie cars, modeling clay and rocking horses, while for four to five years old, the DOH suggests puppets, push toys, building blocks, balls and kites. “Always check the labels on the packaging of toys and follow the instructions or precautions in the labels. And dispose of the plastic packaging accordingly. Keep it out of the reach of children,” Suy said. The DOH advised that the following toys are not for children under three years old: choking hazards, such as balls with a diameter of 1.75 inches or less toys; that contain or break easily into small parts; toys with sharp points or edges, or parts that could pinch or trap fingers, toes, or hair.

DOH reminds consumers to buy ‘safe’ toys for kids

By Cai U. Ordinario

THE national government is keen on passing the proposed amendments to the build-op-

erate-transfer (BOT) law in the first quarter of 2015.  In a briefing on Tuesday, Public- Pri-vate Partnership (PPP) Center Execu-tive Director Cosette V. Canilao said the government is keen on having the amendments passed to institutional-ize a number of policies that cover the PPP Program.  Canilao said the proposed amend-ments have been endorsed by the PPP Governing Board, which is chaired by Socioeconomic Planning Secretary Ar-senio M. Balisacan, and the Economic Cluster chaired by Finance Secretary Cesar V. Purisima.  “Our aim for next year primarily is to pass the BOT amendment, or what we call the PPP Act, which will institutionalize all those [processes]; strengthen the PPP Program; [and] define the processes and mechanisms we are doing right now,” Canilao said.  Canilao added that some of the key proposals include the extension of the period for Swiss Challenge to six months from the current two-month period. The Swiss Challenge will allow other interested parties to outbid the initial project proponent. Projects that have undergone Swiss Challenge in-clude the Metro Rail Transit 7 project. “Nakikita din namin ’yung disadvan-tage to the challengers but that’s in the law, and that’s one of the things we are amending in the BOT law. It’s not only the right to match but, I believe, to outbid the [proponent],” Canilao said. Other proposed amendments in-clude the institutionalization of the Project Development and Monitor-ing Facility (PDMF), the PPP Gov-erning Board and the contingent liability fund.  These changes were not yet included in the last amendment of the BOT law in 2008. Further, the PPP Center, as an institution, was only put in place in 2010.  The PDMF is the revolving fund used to finance prefeasibility studies for PPP projects, as well as the hiring of transactional advisers for PPPs.  The PPP Governing Board, on the other hand, was created in 2013 as the country’s overall policy-making body for all PPP-related matters, including the PDMF.  Meanwhile, the proposed amend-ments also include the separation of regulatory and commercial func-tions of government-owned and -controlled corporations and create a list of projects called “Projects of National Significance.” By virtue of being included on the list of projects of national sig-nificance, projects will be “insulated” from local laws, among others by local government units.

Passage of BOT law amendmentsset in 2015–Canilao

The government targets to roll out nine more public-private partnership (PPP) projects worth P702.78 billion next year, boosting hopes it can complete over 15 projects until the end of the term of the Aquino administration in June 2016. At the PPP 2014 year-end news conference on Tuesday, in Quezon City, PPP Center executive Director Cosette Canilao (right) said these projects include the P374.5-billion Makati-Pasay-Taguig Mass Transit System Loop, the P177.21-billion North-South Rail Project (South Line) and the P50.18-billion Regional Prison Facilities. Also in photo is PPP Center Deputy executive Director eleazar Ricote. PNA

Editor: Alvin I. DacanayWednesday, December 24, 2014

OpinionBusinessMirrorA6

The Philippines in a worldof plummeting oil prices

editorial

WE have been so used to skyrocketing prices, and to protesting about them, that we no longer know how to react to plummeting oil prices. Shall we not welcome this develop-

ment with joy? Is this plunge for real?

The impact of this price plunge on the supply side is much too complicated to explain here. Let us just say it would mean losses to suppliers; possible fail-ure by suppliers to service their bank loans and honor their commitments to their bondholders; trouble for banks; distress for oil investors, and investors in general; joy for holders of non-oil bonds with their rising yields; and conta-gion, as investors abandon perceived weak bonds in favor of perceived stronger ones, even dumping sovereign bonds when the guarantor government is seen as being crippled by diminished tax revenue, etc.

Let’s tackle, instead, the impact on the demand side, to which we belong. The impact here is much more straightforward. As direct or indirect consum-ers of oil products—citizens, households, business entities and the govern-ment—let us rejoice at the reduced prices we are paying (on the assumption, of course, that domestic oil prices are substantially reduced sooner than later to reflect the collapse in world markets).

But what do we do with our unspent funds? This, in fact, is the substantive issue in this new scheme of things. Let us adopt a longer view of reality, lest we lose whatever benefit awaits us in the longer term. The private individuals and families can do whatever they please with their unspent funds, just so long as they spend them—to increase consumer demand—but they will be better advised if they channel these to capital buildup, as by constructing that long-sought additional bedroom to the house, for instance, or paying the additional tuition that will advance the studies of the son or daughter.

For its part, the government must not allow unspent funds to be just stolen or plundered by its officials. Otherwise, it will be guilty of perversely transferring income from the poor to the rich. It must not also allow funds to be wasted in political patronage. The government must direct expenditures to economic infrastructure and other capacity-building facilities. Through this course of action, it will be preparing the economy for the absorption of greater amounts of investment in the future for the acceleration of the country’s growth.

The plunge in oil prices will have an impact cutting across demand and sup-ply lines. Within national economies and the world economy as a whole, there will be threats of deflation, recession and new cartels aimed at market-share protection, rather than at price control. Needless to say, the government must know how to address these.

In this brave new world, let us hope that all of us make the most of the opportunities to gain both short-term and long-term benefits.

The gift of the wise

Obama’s fourth-quarter foreign-policy surprises

DO you remember the story of a young married couple who love each other so much that they are willing to sacrifice to give each other the best Christmas gift? In a short story

written by O. Henry, titled “The Gift of the Magi”, married couple James and Della Dillingham, who live in a modest apartment, have only two possessions between them that they take pride in: Della’s beautiful long hair, which almost reaches her knees; and Jim’s shiny gold watch, which is a heirloom.

By Doyle McManusLos Angeles Times (TNS)

SIX months ago, United States President Obama’s foreign policy looked stymied. Negotiations with Israel and the Palestinians were at a dead end. Russia was gaining ground in eastern

Ukraine. US efforts to end the war in Syria were ineffective. A new extremist army, the Islamic State, was marching into Iraq.

All About Social SecuritySusie G. Bugante

The story goes that, on Christ-mas Eve, with only $1.87 in hand and desperate to find a gift for Jim, Della sells her hair for $20 to a nearby hairdresser to buy a platinum pocket watch fob chain for Jim’s watch for $21. Satisfied with her purchase, Della runs home to prepare Christ-mas dinner for Jim.

Unusually late for dinner, Jim walks in the door and stops at the

sight of his wife, who earlier prayed that she was still pretty to him. Della then admits that she sold her hair to get the chain as a present to him. Jim, in turn, says he sold his watch to buy assorted hair acces-sories as his gift to her. Although Jim and Della are now left with gifts that neither can use, they realize how far they are willing to go to show their love for each other and

As misfortunes gathered, Obama’s response was defensive—and earthy. His first principle, he said, was “Don’t do stupid shit.”

But as a strategy, that was so in-adequate that it drew a public rebuke from his former secretary of state. “Great nations need organizing prin-ciples, and ‘Don’t do stupid stuff’ is not an organizing principle,” Hillary Clinton told an interviewer.

Today the picture looks different.Last week Obama surprised the

world by normalizing US relations with Cuba after a half-century freeze. Before that, he struck significant deals with China on climate change and trade. He launched a new war in Iraq, the country from which he had long promised to extricate America. And in a little-noted, but important move, he extended a limited US com-bat role in Afghanistan for at least another year, stretching his 2014 deadline for a pullout.

Only recently criticized as passive, Obama suddenly looks hyperactive.

And there’s more to come. Obama still hopes to conclude a nuclear deal

with Iran, a diplomatic achievement that will produce major controversy. He plans to lift as many economic sanctions on Cuba as Congress will allow. And aides say they will consid-er yet another attempt at Middle East peace talks if Israel’s March election produces a receptive government.

What happened?“My presidency’s entering its

fourth quarter,” Obama said at his news conference last Friday. “Interesting stuff happens in the fourth quarter.”

Has he undergone a conversion from a president bent on minimizing foreign entanglements to one who’s actively seeking opportunities for diplomatic boldness? Is he admitting he was aiming too low and risking too little?

Not really. Obama’s foreign policy was never quite as passive as its crit-ics made it out to be—and today, it’s not quite as brilliant and visionary as administration officials try to make it sound.

What we’re seeing, instead, is how circumstance, luck, plus a measure

how priceless their love really is.The story ends with this para-

graph: “The magi, as you know, were wise men—wonderfully wise men—who brought gifts to the newborn King of the Jews. They invented the art of giving Christ-mas presents. Being wise, their gifts were, no doubt, wise ones, possibly bearing the privilege of exchange in case of duplication. And, here, I have lamely related to you the uneventful chronicle of two foolish children in a flat, who unwisely sacrificed for each other the greatest treasures of their house. But, in a last word to the wise of these days, let it be said that, of all who give gifts, these two were the wisest. Of all who give and receive gifts, such as they are the wisest. Everywhere they are wisest. They are the magi.”

More than the material things, there is no greater gift than love. Love is the reason the Christian world is celebrating the birth of Je-sus Christ, God Incarnate. There are many ways that we can show our love to all those around us. We can give

our time, and share our talent and treasure, in order to give joy to others.

Also, a wise gift that we can give our loved ones is the gift of peace of mind, because we made sure we have social protection, such as what the Social Security System (SSS) provides. In times of contingencies, the financial burden that usually accompanies them is eased by the various SSS programs. Thus, having social protection is an expression of our love for our families. Give the gift of the wise this Christmas.

Have a blessed and joyful Christ-mas celebration, everyone!

For more information about the SSS and its programs, call its 24-hour call center at (632) 920-6446 to 55 from Monday to Friday, send an e-mail to [email protected] or visit its website at www.sss.gov.ph.

Susie G. Bugante is the vice president for public affairs and special events of the SSS. Send comments about this column to [email protected].

of diplomatic skill, can bring about a run of better-than-average results.

Some of it is the slow ripening of efforts launched long ago. The talks with Cuba took 18 months, plus a push from Pope Francis. The cli-mate deal with China was more than a year in the making. The nuclear talks with Iran have been under way even longer.

US diplomacy has benefited from one huge piece of luck: the increase in North American oil production and the drop in world oil prices. That has made the US and its allies less vulner-able economically and has reduced the running room of adversaries, such as Russia and Iran.

The 2014 congressional election played a part, too. The fact that Obama has survived his last cam-paign has freed him to use his for-eign-policy powers more freely—as he did in normalizing relations with Havana. A Republican-controlled Senate won’t make his life easy, but he no longer needs to worry as much about the electoral impact on Demo-crats if, for example, he concludes a nuclear deal with Iran.

And part of Obama’s recent activ-ism hasn’t, strictly speaking, been at his own initiative; he’s been forced to react to unwanted events, includ-ing Russia’s invasion of Ukraine and the rise of the IS. In Afghanistan he agreed to continue US combat sup-port for the Afghan armed forces after US military officials warned

that without American help, Kabul’s forces could quickly crumble.

In the end, the pillars of Obama’s foreign policy haven’t changed. He’s still avoiding most invitations to employ US military power in foreign conflicts; there’s no appetite for get-ting more directly involved in Syria or for supplying weapons to Ukraine. He’s still persuaded that diplomatic engagement is most likely to bear fruit with adversaries—hence, the talks with Cuba and the widening of discussions with Iran to include the future of Syria and Iraq.

And even though he has revived the Clinton-era slogan of the US as “the indispensable nation,” Obama is still trying to adjust the goals and means of US diplomacy to a world in which America has less absolute power, less money and less appetite for military adventures.

And his administration is still ca-pable of diplomatic missteps. David Rothkopf, a former Clinton adminis-tration official and author of National Insecurity: American Leadership in an Age of Fear, wrote recently: “It is hard to think of a recent president who has grown so little in office.”

I asked Rothkopf last week wheth-er the administration’s recent suc-cesses had caused him to revise his assessment. Not yet, he replied.

Obama’s fourth-quarter foreign policy looks better than it did six months ago. But for good and ill, a lot can happen in two years—and it will.

HOM

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The development of insurance law in the Philippines

Ukraine should put Russia to Donbas test

THE first insurance law in the country was incorporated in the Spanish Code of Commerce (Codigo de Comercio), or the Royal Decree of August 22, 1885 (Real Decreto de 22 de Agosto

de 1885), which was then extended to the Philippines by the Royal Decree of 1888.

By Rajan Menon & Alexander J. MotylLos Angeles Times (TNS)

UKRAINE is now strong enough to seize the initiative to create a lasting cease-fire in its Donbas Rust Belt, currently occupied by Russia and its proxies. And Russia may be weak

enough to be receptive. It is in Kiev’s interest to do so. A state of permanent war with Russia would damage Ukraine’s democracy, economy and security.

The provisions in the Spanish Code of Commerce concerning in-surance can be found in Title VIII (“On insurance contracts”) (repealed by the Spanish Act 50/1980, dated October 8) of Book II and Section III (“On maritime insurance”) of Title III (“On special maritime commerce contracts”) of Book III. However, all these provisions pertained solely to maritime insurance. In addition, while Chapters II and IV of Title XII of Book IV of the Spanish Civil Code of 1889 related to life annuities, they did not relate directly to insurance.

During the Philippine Com-monwealth period, the legislature enacted Act 1459, or the Corpora-tion law, on March 1, 1906. Sec-tions 147 to 153 thereof pertained to “Domestic insurance corpora-tions”. This law allowed the cre-ation of life and nonlife insurance companies. These provisions were expressly repealed by Act 2427, or the Insurance Act, on December

11, 1914. This act took effect on July 1, 1915, and also repealed the provisions of the Spanish Code of Commerce on insurance.

Under the Insurance Act, the in-sular treasurer, in addition to his official title, was designated as the insurance commissioner ex-officio. This made then-Insular Treasurer Jeremiah L. Manning the first in-surance commissioner, albeit in an ex-officio capacity, until he retired on June 11, 1916. The government agency that supervised insurance business in the country was the Insurance Division of the Bureau of the Treasury (BTr). By 1918 60 insurance companies were doing business in the Philippines. Of this number, nine were local companies, 12 were American and the rest were from other nations, mainly the United Kingdom. Most of the coverages were fire, marine and life. Typhoon and earthquake cov-erage were provided by the British

Traders Insurance Co. and the Union Insurance Co. of Canton, both based in Hong Kong. The only Philippine company offering these coverages was the Fidelity and Surety Co. of the Philippines. On March 10, 1917 Act 2711 (Chapter 15) amended the Administrative Code to provide for the provisions on Public Bonding law.

In 1939 the Union Insurance Society of Canton appointed Rus-sel & Surgis as its agent in Manila, transacting business limited to nonlife insurance. 

During the Second World War, the Insurance Division was separated from the BTr and attached to the Bureau of Banking. After the war, the division was returned to the treasury bureau. In 1947 the Insur-ance Division was merged with the banking bureau.

On January 3, 1949, along with the formal opening of the Central Bank of the Philippines, the bank-ing bureau was renamed as the Of-fice of the Insurance Commissioner, by virtue of Republic Act (RA) 275. Likewise, the bank commissioner and assistant bank commissioner were renamed as insurance com-missioner and assistant insurance commissioner, respectively.

On December 18, 1974, Presiden-tial Decree (PD) 612 was promul-gated, ordaining and instituting the Insurance Code of the Philippines, thereby repealing Act 2427. PD 63, 123 and 317 were issued, amending PD 612. Among other things, PD 63

provided that the Office of the Insur-ance Commissioner be renamed as the Insurance Commission (IC). Fi-nally, on June 11, 1976, PD 1460 took effect and consolidated all insurance laws into a single code, resulting in what we know now as the Insurance Code of 1978. 

Due to the series of failures in the preneed industry, there was a need to provide a stricter regula-tory framework. On July 27, 2009, RA 9829, or the Preneed Code of the Philippines, was enacted. By virtue of this code, the regulation and su-pervision of all preneed companies conducting business in the country was vested in the IC. 

On August 15, 2013, RA 10607, or the Amended Insurance Code, was signed by President Aquino. One of the amendments included in this law is the progressive increase of capital requirements for life and nonlife in-surance companies every three years until 2022. 

The revisions embodied in the Amended Insurance Code are in-tended to reinforce the provisions of the previous code, so as to further strengthen the insurance industry and ensure the economic viability and financial stability of companies operating in the country, to the end that each and every Filipino is amply protected and secured.

Dennis B. Funa is the Insurance Commission’s deputy commissioner for legal services. Send comments to [email protected].

‘WHY pick on Sony? They haven’t had a hit since the Walkman.” In a three-minute skit on Saturday Night Live over the weekend, comedian Mike Myers nailed

one of the less-discussed problems to be exposed by North Korea’s hack of Sony Pictures: the apparent cluelessness of top Sony brass in Tokyo.

Sony’s got bigger problems than North Korea

Like the Japanese media, Sony’s corporate headquarters, thus far, seems to view the hacking drama as mostly an American problem. In covering the story, local newspapers have focused on Hollywood’s poor taste in lampooning North Korean leader Kim Jong Un. Sony execu-tives, including CEO Kazuo Hirai, have barely commented.

In fact, the attack has exposed a disturbing lack of cyber-prepared-ness on Sony’s part. Early on Hirai recognized the sensitivity of The Interview—the Seth Rogen comedy that appears to have provoked the Pyongyang regime—even going so far as to ask for revisions to the climactic assassination scene. But since the hacking, public coordina-tion between Los Angeles and Tokyo has been poor, if not nonexistent. The controversial decision to pull the movie from theaters before its release was reportedly made by the studio alone.

This internal dysfunction points to a much wider problem at Sony. No corporate name better embod-ies Japan’s rise from the devastation of World War II. The Japanese view Sony founders Masaru Ibuka and Akio Morita with the same awe and affection that Americans have for Henry Ford or Steve Jobs. The Walk-man, about which Myers’s alter ego Dr. Evil joked on Saturday, changed the world and fueled a cottage indus-try of books heralding the coming domination of Japan Inc.

But as the company expanded—in part, with the high-profile purchase of Columbia Pictures Entertainment in 1989—it lost focus. Over the last two decades executives have repeat-edly put off painful restructuring and refused to shed underperforming as-sets. Sony’s operations now sprawl from film and music studios to video- game consoles to life insurance. To-kyo’s hands-off attitude toward its Hollywood studio may reflect a laud-able concern for artistic freedom. It’s also an acknowledgment that the company has grown too big and too disparate for any meaningful over-sight from the top.

Until he sold off his stake in October, activist investor Daniel Loeb had argued vehemently that Sony’s entertainment division was a boondoggle, a luxury the company couldn’t afford. Largely left to its own devices, the entertainment division was turning out profits and hits like Spider-Man, but all-too-many duds, as well. (Ironically, early word on The Interview suggests it, too, would have tanked at the box office.)

Rather than heeding Loeb’s advice, Hirai left the studio on autopilot while he concentrated on trying to revive the moribund electronics division. Sony execu-tives’ attitude toward Loeb can be judged by some of the thousands of e-mails leaked by the hackers. “Champagne for all,” wrote Sony Pictures Chief Financial Officer David Hendler after Loeb an-nounced that he was selling his Sony shares. Tom Rothman, chair-man of Sony’s TriStar Productions venture, gloated: “Sit by the side of the river long enough, and the bod-ies of your enemies will float by.”

Japan’s famously tame media helps make this kind of corporate complacency possible. Reporters have traditionally gone easy on the iconic Sony, as they have against lesser-known Japanese corporations like Takata, which is enmeshed in a scandal over the safety of its air-bags. In the United States the Sony hack has highlighted the scale of the threat posed by North Korea, which has been eagerly ramping up its cy-berwar capabilities. Yet, there’s been very little discussion in the Japanese media about how exposed Japanese companies are to further attacks, or what the government should be doing to help them bolster their cy-berdefenses. It’s not even clear whose bureaucratic bailiwick this should fall under.

The irony is that, with The Inter-view, Sony got into trouble for doing something it should be attempting more often: taking risks. Where ex-ecutives really need to be more dar-ing, though, is in rethinking their own company.

Dennis B. Funa

INSURANCE FORUMBLOOMBERG VIEW

William Pesek

Almost imperceptibly, the tide seems to have turned in Ukraine’s favor. The Ukrainian army has been able to withstand daily attacks by Russian troops. Ukraine’s October parliamentary elections produced a pro-Western majority, and its tech-nocratic government appears poised for radical reforms.

By contrast, the Russian economy is in deep trouble from plummeting oil prices and the bite of sanctions. Many Russians have died fighting in the Donbas enclave. And Russian President Vladimir Putin is increas-ingly isolated internationally.

Western pundits debate wheth-er Russia’s troubles make it more amenable to a political settlement in Ukraine or more aggressive. This question won’t be resolved in

argument. Russian intentions need to be put to the test.

Ukraine can devise such a test in a way that enables it to retain the politi-cal high ground, while strengthening its security and prospects for eco-nomic reform. But first, Kiev must accept some uncomfortable realities.

Neither Crimea nor the two sep-aratist pro-Russia republics in the Donbas area will return to Ukraine’s fold anytime soon, if ever. Ukraine lacks the military and financial re-sources to retake them, and any move to do so would not get Western back-ing and could even erode American and European support for Ukraine.

Kiev should, therefore, act as if these breakaway eastern regions are no longer part of Ukraine. It’s starting to do just that, as seen in

its recent decision to end subsidies, pensions, veterans’ benefits and postal and banking services to the Donbas statelets.

However, Kiev should not rec-ognize these regions as belonging to Russia. That would be political suicide for a nascent government facing multiple challenges, and it would be a needless gift to Moscow. Nor should Kiev say anything de-finitive about the territories’ final status. Instead, Ukraine should keep its future options open, while ceding responsibility for their economic up-keep to Russia.

Disengaging itself from Crimea and the Donbas enclave benefits Ukraine. These regions have been antireform, anti-Western, pro-Rus-sia bastions since Ukraine’s inde-pendence. Their detachment makes radical reform in Ukraine possible and deprives Russia of an important means for meddling in Ukrainian politics. So what looks like a loss is, in fact, a gain.

Moreover, industrial production in the Donbas enclave has fallen 80 percent, and coal mines, factories and infrastructure have been severely damaged. Kiev would be wise to let

Russia bear the burden of repairing the region’s economy.

Once Kiev bites the bullet on Crimea and Donbas, it should pres-ent Russia with a workable peace plan for the latter region, where the con-tinuing conflict could still spawn a wider war. The plan would have four components:

n The creation of a 30-mile “no forces” zone, half of it west and half of it east of the current line of fighting.

n The introduction of third-party peacekeepers and observers to patrol the zone. The composition of the peacekeeping forces should be decided by the United Nations and the Organization for Security and Cooperation in Europe, with Ukraine and the separatist republics partici-pating in the selection process.

n The announcement of a sym-bolic pullback in certain areas—one that would not surrender any impor-tant asset, but would demonstrate Ukraine’s seriousness.

n A pledge—lasting five years—to not apply to join the North Atlantic Treaty Organization (Nato).

If the plan is accepted and works, the gains for Ukraine are obvious. It

reduces the chances of an escalation in hostilities in the east. Russia’s bona fides on peace would be tested. It cre-ates an environment more conducive to economic reform.

The renunciation of Nato mem-bership would make the plan par-ticularly attractive to Russia with-out sacrificing anything of value to Kiev. The alliance won’t admit Ukraine anytime soon, if at all, and its willingness to defend Ukraine is open to doubt.

Russia, and particularly Putin, would also benefit. Russia can ill-afford another round of war as it faces a deep recession. More casual-ties—Russia may have lost as many as 4,000 soldiers in the last few months—would do no good for Pu-tin’s legitimacy or popularity. Coop-erating with Ukraine would diminish Russia’s isolation in the world.

Critics may charge that such an initiative is a cave-in to Putin’s power plays and rewards Russian aggression. Nothing could be further from the truth. Ukraine would not be surrendering Crimea and Donbas, but merely acknowledging the cur-rent reality.

Ukraine needs peace if it is to

initiate and sustain economic re-forms, some of which will be pain-ful. A permanent condition of war over territories that it lacks the wherewithal to regain and a pre-occupation with membership in a security alliance that fears a mili-tary conflict with Russia makes no sense. Worse, war mortgages the well-being of 40 million Ukrainian citizens for the sake of a rhetorical, and presently undeliverable, com-mitment to the liberation of the 5 million in territories now under Russian control.

Ukraine has a unique opportunity to save itself. It should boldly seize it, test Russia’s oft-proclaimed interest in peace and offer Putin a face-saving solution to his own woes.

Rajan Menon is a professor of po-litical science in the Powell School at City College of New York and a senior research fellow at Columbia’s Saltzman Institute of War and Peace Studies. He is coauthor of Ukraine in Conflict, to be published in February. Alexander Mo-tyl is a professor of political science at Rutgers University-Newark. His weekly blog, Ukraine’s Orange Blues, appears on www.worldaffairsjournal.org.

By Butch Fernandez

President Aquino on tuesday signed into law the P2.606-trillion national budget, set-

ting next year’s funding priorities for state-sponsored projects and programs, as administration and opposition aspirants start gearing up to run for various posts at stake in the 2016 national elections. the enacted 2015 budget law is 15.1 percent higher than the cur-rent year’s P2.265-trillion approved allocation. in a brief speech after affixing his signature on the 2015 budget bill, Mr. Aquino warned that sanctions would be imposed on government officials who will fail to implement the priority projects listed under the administration’s “performance-budgeting scheme.” He said the loopholes that allowed unscrupulous officials to misuse public funds have been plugged.  now, he said, it would be difficult to steal from state coffers, vowing that “we won’t stop going after those who misuse public funds.”  the President, at the same time,

thanked senate and House leaders for their efforts to make sure the annual money measure is passed on time, along with the P22-billion 2014 supplemental budget bill intended for supertyphoon Yolanda reconstruc-tion and other projects suspended when the supreme Court outlawed the administration’s disbursement Acceleration Program (dAP). Mr. Aquino also asserted this is the  fifth consecutive year the national budget law was passed before the year ends, noting that its timely enactment cemented   the adminis-tration’s spending program for “rapid, long-term and inclusive development.” As approved, Mr. Aquino reported that the 2015 budget allocated ad-equate funds amounting to P20.9 billion for 1,590 cities and towns under his administration’s Bottom-up Budgeting Program to provide for the needs of their communities. For instance, Mr. Aquino said the department of Public Works and Highways is eyeing to finish concret-ing and improving national roads covering 4,219 kilometers.

By Catherine N. Pillas

The Philippine Chamber of Commerce and Industry (PCCI) sees the country

notching a growth of above 6 percent in the fourth quarter of the year and over 7 percent in 2015 due to the rebound in exports and other favorable macroeconomic conditions.

“i think it would be mid to high 6 percent this quarter...normally fourth quarter is really high,” PCCi

President Alfredo M. Yao said in an interview. Yao noted that the slowdown in

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Wednesday, December 24, 2014

PCCI expects PHL economy to begin big rebound in Q4

P-Noy signs ₧2.6-T 2015national budget into law

PoPe in blistering critique of Vatican bureaucrats

Romero family rift eyed in port shoot-out

PoPe Francis (background, center) delivers his message during a meeting with cardinals and bishops of the Vatican Curia on the occasion of the exchange of Christmas greetings in the Clementine hall at the Vatican on Monday. AP/L’OsservAtOre rOmAnO

VATICAN CITY—To the Cath-olic Church’s “seven deadly sins,” Pope Francis has added

the “15 ailments of the Curia.” Francis issued a blistering indict-ment of the Vatican bureaucracy on Monday, accusing the cardinals, bishops and priests who serve him of using their Vatican careers to grab power and wealth, of living “hypo-critical” double lives and forgetting that they’re supposed to be joyful men of God. Francis turned the traditional, genteel exchange of Christmas greetings into a public dressing down of the Curia, the central admin-istration of the Holy See which gov-erns the 1.2-billion strong Catholic Church. He made clear that his plans for a radical reform of the structures of church power must be accompa-

nied by an even more radical spiritual reform of the men involved. Ticking off 15 ailments of the Curia one by one, Francis urged the prelates sitting stone-faced before him in the marbled Sala Clementina to use the Christmas season to repent and atone and make the church a healthier, holier place in 2015. Vatican watchers said they had never heard such a powerful, violent speech from a pope and suggested that it was informed by the results of a secret investigation ordered up by Emeritus Pope Benedict XVI in the aftermath of the 2012 leaks of his papers. Benedict tasked three trusted cardinals to probe deep into the Vati-can’s back-stabbing culture to root out what would have prompted a

By Joel R. San Juan

tHe Manila Police district (MPd) had arrested 49 men believed to be involved in

a shoot-out with   the security personnel of Harbour Centre Port terminal inc. (HCPti) at the Manila south Harbor. Authorities are looking into the the possible link of the shooting incident to the ongoing rift be-tween  businessman reghis romero ii of r-ii Builders and his son Mi-chael romero, CeO of HCPti. investigators noted that the gunfight happened a day after the regional trial Court in Pasig City ordered the elder romero’s group to return management control of the 10-hectare facility in tondo to One source Port support services inc., saying its earlier takeover was illegal. the december 18 order addressed a complaint filed in november by One source, a firm hired by HCPti

to render ancillary and services management in January 2007. initial reports coming from the MPd showed that five pump boats carrying about a hundred men docked at HCPti around 6 a.m., alarming security guards in the area and provoking an exchange of fire between the two groups. Most of the armed men were able to escape on four of the five boats, while those unable to flee were ar-rested and taken to the MPd head-quarters on United nations Avenue. One pump boat, which could carry more than 30 people, was re-covered by the police. Also seized from the armed men were a caliber .45 pistol, a caliber .38 revolver, an M-16 magazine with 30 rounds of ammunition, two bomb igniters and 10 hand grenades. supt. dennis Wagas, chief of the MPd legal office, said that prior to the december 19 shoot-out, the security office of HCPti sent a

letter to the MPd requesting police assistance in view of reports that armed men had been seen roving in the area. Many of those arrested claimed they did not know of any plan to “at-tack” HCPti and that they were only “promised jobs” as security guards, janitors and even movie stuntmen. salindatu embaldan, 46, who introduced himself as a taguig City resident, said he was prom-ised a job on sunday last week as a pier security guard by someone he knew only as ramon. On Friday embaldan said he and his companions were driven in a jeep to a pier in Manila where they were instructed to join other men on three pump boats. “We were told that we were at-tending an orientation,” he said. When they docked at the south Harbor and got off the boats, em-baldan said he was instructed by ramon over the phone to just wait

for their employer and a lawyer who were going to fetch them. Moments later, embaldan said he and his companions heard gunshots and saw two other men in pump boats engaged in a shoot-out. Wagas said based on the suspects’ statements, they were picked up by the three pump boats at Pier 6 at Ma-nila north Harbor and were ferried to south Harbor. Before that, Wagas said, five pump boats—commandeered by three men—initially came from Obando, Bulacan. Aside from taguig, Wagas said the other arrested men came from Makati City, Antipolo City, Quezon City and Obando. Late last week the Pasig court ordered the elder romero and his companies r-ii Builders inc. and r-ii Holdings to “cease and desist from further disrupting and interfering with [one source’s] peaceful manage-ment control, operations and posses-sion” of the tondo facility.

‘noChe buena’ Feast Customers flock to the excelente store, known for its Chinese cooked ham, in Quiapo, Manila. no Filipino traditional Noche Buena feast is complete without a ham, known locally as hamon (from the spanish jamon). nOnIe reYes

the third quarter can be attributed to the port-congestion dilemma in the country’s main gateways; but better performance can always be expected during the last quarter of the year. the PCCi head, likewise, noted that other domestic policies, such as the imposition of the importer clearance certificates by the Bureau of Customs and the administrative order on colorum vehicles earlier this year, have clouded the business environment, as well. However, given the positive fac-tors in the Philippines’s favor next year, Yao echoed the sentiment of the department of trade and in-dustry that registering an above-7-percent growth in 2015 is likely, even predicting an increase of 11 percent to 15 percent in export

receipts next year, mainly on the recovery of international markets, like the Us and europe. “We’ll have a lot of election spending next year. it will be an election-fueled economy next year and we’ll be hosting the Asia-Pacific economic Cooperation meeting, so we’ll have a full year next year. We’re riding high; outlook is good,” Yao said. Yao noted that foremost among the factors that will fuel the econ-omy next year is the expected robust infrastructure spending, following the approval of several public-private partnership proj-ects this year. the growth trend can continue, said Yao, provided that no “natural or man-made dilemmas” will come into the picture next year.

See “Pope,” A2