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Duterte threatens to seize Palawan power franchises

PRESIDENT Rodrigo R. Duterte on Saturday said the national government is ready to address the power outages in Palawan by “expropriating” the franchises of the province’s power providers and offer these to other parties if they cannot solve the problem by year’s end.
“At this late in the day in our state of development, brownouts of 6 to 8 hours are not acceptable to me,” Mr. Duterte said in his remarks at the Subaraw Biodiversity Festival in Puerto Princesa on Saturday, Nov. 10.
He noted that he has “nothing against cooperatives” there because “they represented the pioneering spirit of the early years” of the province and “the entire Philippines.”
“Nothing personal, but I’ll give you towards the end of the year (to put in place) a new set up that can provide enough energy (for Palawan) to develop, operate and move,” he added.
Mr. Duterte then said he will tap other parties to resolve the province’s rotational power outages.
“You’ll have to upgrade your source of energy. If not I will find others with the financial capability. China is itching to get hold of development here. I will expropriate your franchise. I will buy it at a valuation that is fair to end this impasse,” he said.
The President said he will meet with the province’s governor and the mayor of Puerto Princesa to discuss the matter.
“I cannot understand why in this age we have electricity that is constantly interrupted,” he said.
“You can’t have six to eight hours (of power interruption) and say that you want tourism and economic development,” the President said. — Arjay L. Balinbin

Pakistan industries invited to invest in PHL automotive, parts sector

AMBASSADOR to Pakistan Daniel R. Espiritu said the Philippines welcomes Pakistani investment, particularly in the automotive industry.
Mr. Espiritu made the statement during a dinner reception on Oct. 16 hosted by the Philippine Pakistan Business Forum (PPBF) and Anjum Asif Pvt Ltd, exclusive distributor of Del Monte products in that country, according to the Philippine Embassy in Pakistan in a statement issued Friday.
The Ambassador said the Philippines produces quality auto and motorcycle parts and components which have also complied with international standards and specifications, at very competitive prices.
He said the current trade between the Philippines and Pakistan in auto parts can be further increased.
Mr. Espiritu also touted incentives available to investors, including the four to eight-year income tax holiday, tax and duty-free importation of capital goods and the special investor’s resident visa.
He added that exporters from Pakistan have supplied quality products to the Philippines, such as rice, cement and medicines. He cited the increase in Philippine-Pakistan bilateral trade, which grew to $250 million in 2017 from only $116 million in 2015.
PPBF Vice-President Anjum Nisar noted that the continued engagement of the Philippine Embassy in Pakistan with the business community in that country has increased the connectivity between the two countries.
According to the Philippine Embassy, the event was attended by the Pakistan Stock Exchange chairman Sulaiman S. Mehdi, representatives from the Pakistan automotive industry and the Motorcyle Spare Parts Importers & Dealers Association (MSPIDA), and some members of the pharmaceutical sector. — Camille A. Aguinaldo

BPI sees growth of green energy financing, eyes Mindanao hydro

DAVAO CITY — Proponents of planned renewable energy projects in Mindanao, especially hydroelectric power, have been offered a sustainable energy financing window by the Bank of Philippine Islands (BPI).
“Our goal is to grow this loan portfolio faster than the rest of the loan portfolio,” Jo Ann B. Eala, head of the listed bank’s Sustainable Energy Finance, said at a briefing on Nov. 6 at the Seda Abreeza Hotel.
Ms. Eala said the bank has been stepping up its campaign to attract borrowers as well as encourage proponents to include sustainability into their ventures.
BPI has partnered with International Finance Corp. (IFC), an arm of the World Bank, for funding and technical support in the implementation of sustainability projects.
Ms. Eala said IFC also provides technical evaluations on project viability.
According to the Mindanao Development Authority (MinDA), there are about 290 proposed renewable energy projects in the southern islands, mostly involving the development of rivers as small hydroelectric power sources.
MinDA Deputy Executive Director Romeo M. Montenegro said many of the proponents of these projects are looking for a fund source.
“Power projects, especially those in the renewable energy sector, are capital intensive,” said Mr. Montenegro, also the head of the technical working group at the Mindanao Power Monitoring Council.
Mr. Montenegro said the government is pushing for these renewable projects to balance the power mix in Mindanao, which is currently dominated by fossil-fuel through coal-fired power plants.
Juan Carlos L. Syquia, BPI head of Corporate Clients Segment, said the growth of the sustainable energy portfolio is expected to be more pronounced in 2019 as this year’s industry expectation has been tempered by economic developments.
As of September, the sustainability portfolio stood at P124 billion in availed loans for 304 projects, of which 155 are in energy efficiency, 78 in renewable energy, and 71 in climate resilience.
Of the total, P3.53 billion went to Mindanao for 25 projects with P2.2 billion for climate resilience, P700 million for climate resilience, and the remainder for renewable energy project.
Eric Roberto M. Luchangco, bank head for Corporate Credit Products, said projects get approved based on financial viability.
Mr. Luchangco said the bank also considers market trends and prices and noted that beginning mid-2019, green energy sources will be given priority in the wholesale spot electricity market as provided under the Renewable Energy Act of 2008. — Carmelito Q. Francisco

Tax court rules ₱74M improperly collected on Air Philippines jet fuel imports

THE Court of Tax Appeals (CTA) special second division has granted a motion for reconsideration sought by the carrier then known as Air Philippines Corp., finding the improper collection of nearly P74 million from the company on its imports of Jet A-1 aviation fuel between January and July 2007.
Air Philippines is still the legal name of the company currently operating as PAL Express, the budget arm of Philippine Airlines.
In a Nov. 8 amended decision, the division said Air Philippines proved that the tax it paid for the fuel import, amounting to P73,769,349.40 was wrongly collected.
“The Court finds that petitioner has satisfactorily established its entitlement to refund of the tax erroneously collected and paid under protest excise taxes in the aggregate amount of P73,769,349.40,” it said.
On April 1, 2016 the CTA had denied the Petitions for Review of Air Philippines, citing insufficient evidence.
According to the CTA, Air Philippines, in order to avail of the tax exemption and press its refund claim, needed to prove it paid its basic income or franchise tax, whichever is lower, and that the imported materials were used for transport and non-transport operations and other activities, and that the material was not locally available in reasonable quantity, quality, or price.
The appellate court said that in the reopening of the proceedings for the case, Air Philippines was able to prove through witness testimony that the five shipments of Jet A-1 fuel were used in its aircraft for domestic flight operations.
The company also presented other documentary evidence to support its claim such as certifications from the Air Transportation Office (ATO), endorsements from the Department of Finance and Authorities to Release Imported Goods.
“In fine, petitioner was able to sufficiently establish that the importations of the subject aviation fuel for petitioner’s transport operations and other activities incidental thereto…” the court said.
The CTA noted that Air Philippines was able to prove that the Jet A-1 fuel was not locally available in reasonable quantity during the time of the importation through ATO Certifications which specified that the imported fuel is “not locally available and are necessary/incidental for the operation of Air Philippines.”
Air Philippines was also able to prove unavailability at a reasonable price through the presentation of price quotations issued by Petron Corp. and Pilipinas Shell Petroleum Corp.
“(T)he cost per liter of importation of aviation turbo jet fuel/Jet A-1 for the months of January to July 2007 was lower than the cost of aviation turbo jet fuel if purchased locally either from Petron or Shell,” the court said.
The court also said Air Philippines also proved that the fuel is not available in quantity by comparing “total refinery production and the total industry petroleum products demand.” It concluded that the demand is more than the production based on the Supply Demand Balance Sheet 2001-2010 in Thousand Barrels as issued by the Department of Energy in 2011. — Vann Marlo M. Villegas

What are digitally savvy leaders?

In a world of constant disruption and innovation-led advances, organizations are increasingly leveraging technology to transform their business strategies. However, as revealed in the Global Leadership Forecast 2018 (a joint research project by EY, Development Dimensions International, Inc. and the Conference Board), many companies are unable to keep up with the pace. The forecast also mentions that 50% of the 2006 Fortune 500 companies no longer exist, while futurist speaker Thomas Frey projects that advances in robotics and artificial intelligence will impact over two billion jobs in the next decade. Given the inescapable technological trajectory that the world is on, organizations with digital-savvy leaders who are cognizant of the threats and opportunities brought about by technology are now outperforming competitors with less digitally-capable leaders.
Digitally-savvy leaders are deemed better prepared to meet emerging business challenges, notably in anticipating and responding to new paradigms of competition, navigating complexity and leveraging on data and analytics to make decisions. This, in turn, results in stronger financial performance for their companies.
Digital-savvy leadership is an aspiration across the globe. In the Philippine context, we can surmise that there is also keen interest in developing talent that can address and lead companies in these disruptive and transformative times. In the Microsoft Asia Digital Transformation Study conducted in 2017, 86% of Philippine business leaders said they consider transforming into a digital business to enable future growth as a key priority, yet only 32% have a full digital transformation strategy in place. The disparity is an indication that there is urgent need to groom digital leaders for Philippine businesses to grow and remain relevant in the future.
WHAT MAKES A LEADER DIGITAL READY?
The Global Leadership Forecast 2018 mentions five key capabilities that digital-age leaders need to develop and demonstrate. These include:

• Driving digital transformation of business strategies and operations through technology, innovation and promoting digital “traits” in the organization;

• Navigating today’s complex digital landscape by accepting the options and realities that come with disruption;

• Connecting people, possibilities and technology;

• Relating to others by balancing people and technology;

• Thinking out of the box and finding holistic, creative and innovative solutions.

DIGITAL-AGE COMPETENCIES
While different leaders advance their digital readiness at varying paces, there are certain competencies that are perceived as being more critical and that have the greatest impact on an organization’s performance.

• Digital leadership — Leaders need to understand the impact of digital and technology on their business, including the ability to foresee what new disruptions could possibly arise in the future.

• Flexibility — Digital leaders need to be mentally agile and adaptable to constant disruption, developing the focus to learn every day and the boldness to break away from “traditional” business processes.

• Execution — Digital leaders need to not only be able to come up with new ideas, but should also develop the skills to actualize those ideas — not necessarily in themselves, but within the organization.

• Collaboration — Given the disruptive nature of technology, digital leaders need to have the charisma, vision and leadership to get their people to work together to solve issues, break down internal silos, and achieve digital competency as a team.

• Talent — Digital leaders need to be able to identify and recruit digitally-savvy talent. This requires a deeper understanding of the new skills, competencies and experience that are becoming increasingly valuable in the digital age.

• Holistic Vision — Digital leaders must not only be able to see the bigger picture, but they also need to be able to stitch together ideas from different perspectives.

Developing effective digital-ready leadership does not take place overnight. It requires time, commitment and an innovation-led culture that permeates the organization from the top down. But it starts from identifying vital leadership roles in the organization and securing leadership buy-in for the company’s digital transformation. It necessitates re-evaluating the company’s current competency framework and adding in emergent skill and knowledge that need to be developed in current, as well as future leaders. Since these new competencies may not yet exist within the organization, leaders should also explore digital acceleration programs to help them adapt and immerse into the digital ecosystem and build technical awareness. Naturally, some leaders may not be able or willing to adapt to a digital mind-set, which may require a tough choice to consider replacing them with more digitally capable leaders.
What is important to remember is that “being digital” is not the same as simply “going digital.” It is not just a question of bringing new technologies into the organization. It’s more about making digital — and its related traits, e.g. innovation, a technical mind-set, always-on information access, open platforms, creativity and resourcefulness, among others — a deeply ingrained part of the organization’s culture and way of working.
To build a truly digital culture, leaders may need to revisit all the organization’s traditional processes — from recruitment to training and talent development, from reward structures to internal hierarchies, from conventional work spaces to cloud-enabled workplaces of the future, and other similar shifts.
Clearly, the amount of work and commitment needed to develop digital leaders — and by corollary, digitally-enabled organizations — is not for the faint of heart. But it is for the bold of vision.
 
Rossana A. Fajardo is the Advisory Service Line Leader of SGV & Co.

Analysts: Graft ruling no dent on Duterte-Marcos ties

By Arjay L. Balinbin
Reporter
THE SANDIGANBAYAN’S conviction of former first lady and Ilocos Rep. Imelda R. Marcos for seven counts of graft will have no dent on the Duterte-Marcos alliance, analysts said.
At least three analysts sought for comment said the Marcos family and President Rodrigo R. Duterte, who is known for his extensive drive against graft and corruption in government, will remain strong allies despite the conviction of Mrs. Marcos.
In a phone interview last Saturday, Nov. 10, political science professor Marlon M. Villarin of the University of Santo Tomas (UST) said “what is worth waiting for is whether Mr. Duterte will grant pardon to Imelda Marcos.”
“That is what the public should be waiting for. We have to remember that Mr. Duterte can be both political and legalistic. He can always say that he respects the decision but since the Constitution grants the President the pardoning power, he may consider it,” he added.
For his part, Polytechnic University of the Philippines (PUP) sociology professor Louie C. Montemar said in an emailed reply to questions last Sunday, Nov. 11: “The Duterte-Marcos unholy alliance will stand fast as the families need each other even more.”
He added that Mrs. Marcos’s “conviction isn’t final and until that time, the administration can merely feign disinterest, at best; but, that disinterest should indicate how hollow all the administration’s calls are against corruption.”
Perlita M. Frago-Marasigan, University of the Philippines (UP) political science assistant professor, said in a phone message last Saturday that “[n]othing will change if they both play the political game well.”
For his part, Mr. Villarin said about the possibility of a pardon, “It’s personal because it is up to the President whether he feels you are worthy of the pardon, and it’s political because when you grant pardon there’s political dynamics surrounding it, especially when the one who is going to receive it is a politically significant individual.”
In a statement last Friday, Nov. 9, Presidential Spokesperson & Chief Presidential Legal Counsel Salvador S. Panelo said the Palace “respects” the decision of the Sandiganbayan, and also stressed that “[t]he Executive Branch is not in the business of exerting undue interference or influence in the affairs of another separate and independent branch of the government.”
For Mr. Montemar, Malacañang’s statement is a “safe stance.”
Ms. Frago-Marasigan said Mrs. Marcos’s conviction is “good publicity” for the administration. “It can work positively for the electoral campaign of the President’s party and his anointed ones,” she explained, noting that the graft court’s verdict is “a good sign that there is still justice in this country.”
According to Mr. Villarin, Mr. Duterte has manifested his “capability to separate politics from justice” in his past decisions, especially when he allowed the hero’s burial for the late dictator Ferdinand E. Marcos at the Libingan ng mga Bayani (Heroes Cemetery).
“People were saying it was a form of political accommodation without thinking that Mr. Duterte was in the context of legality, and that’s why he supported it and let the judiciary decide,” he said.
IMEE MARCOS’S SENATE BID
The conviction of Mrs. Marcos “will definitely affect” her daughter’s senatorial candidacy for the 2019 midterm elections , Mr. Villarin said.
Ilocos Norte Governor Maria Imelda Josefa “Imee” R. Marcos is running for senator under the Nacionalista Party, which forged an alliance last August with Davao City Mayor Sara Z. Duterte-Carpio’s regional political party Hugpong ng Pagbabago.
“It will be a very tight race for the Marcoses. Everything goes back to the square one for the Marcos camp. But they can rest assured that Mr. Duterte will definitely support them, because his relationship with the Marcoses is more of institutional and political rather than personal,” Mr. Villarin said.
The Marcos matriarch, for her part, has filed her candidacy for Ilocos Norte governor.
Mr. Montemar said the Duterte camp “can always simply point out that Mrs. Marcos’s case does not, in any way, make [the Marcoses] tainted options or less viable leaders.”
“The ball is with Gov. Imee Marcos now,” Ms. Frago-Marasigan said, adding that “[r]eacting negatively on this issue will kill her political career.”
“If she will contest the decision, she will appear delusional and unfit to become senator. If she will lash at Pres. Duterte, she will cut the alliance, then she will also sever the lifeline of her bid to become senator —that will be a political suicide. On the other hand, if she does not publicly denounce the president’s stance, it can mean acceptance of the conviction; and possibly, her redemption, and the retention of the political alliance. But I know deep inside, Gov. Imee remains her mother’s daughter and that she is silently suffering. So, trite, as it may sound, I will have to say beware of a woman’s ire,” she explained.
Sought for comment, Mr. Panelo said the possibility of a pardon is “not only speculative but premature as well.”
“The President has the constitutional authority to grant pardon to persons convicted by final judgment. It is not so in the case of Congresswoman Marcos, the decision of the anti-graft court not having attained finality. Her lawyers have stated the she will avail of legal remedies available to her to reverse the decision from the same court or higher courts.”
“In granting pardon to convicts, the President will consider the recommendation of the Board of Pardons and Parole (BPP), an office under the Department of Justice (DOJ), which looks into the records and studies the circumstances of the person in order to evaluate the latter’s eligibility and entitlement of the President’s act of grace.”
“As matter of course and policy, the President like his predecessors, weighs in all factors before exercising his right to grant clemencies.”

Xi’s visit to boost stronger China-PHL ties: Arroyo

By Charmaine A. Tadalan
Reporter
CHINESE PRESIDENT Xi Jinping’s visit to the Philippines in November is seen to strengthen relations between the two countries, House Speaker Gloria Macapagal-Arroyo said.
“I expect President Xi’s visit to further strengthen relations between our two countries. Our evolving relationship is part of a history that dates back to previous leaders of our two countries, so it has a deep foundation,” the Speaker said during her speech at the Boao Forum for Asia in Hong Kong.
“Now, the current status continues to be favorable, because President Rodrigo (R.) Duterte is a friend of China.”
Presidential Spokesperson Salvador S. Panelo said last week Mr. Xi is set to visit the country by the end of November.
The Speaker also highlighted the significance of the country’s ties with China, particularly in infrastructure.
“Infrastructure will be very important for the Philippines in the coming years, and there is no country in the world that matches China’s recent track record and capability in this area,” Ms. Arroyo said.
The Speaker had noted China’s strength in infrastructure was among the keys to its success in boosting its economic growth over the last four decades.
For one, she cited that China, in strengthening its water conservation system, had minimized damages caused by natural disaster, which helped develop its agricultural sector.
Further, Ms. Arroyo said it is important for the country to build stronger relations with China, considering it is becoming the world’s largest economy.
“China’s economy remains the most dynamic and fast growing among the major nations, and will soon become the largest economy in the world, so of course, it is good to be friends with China,” Ms. Arroyo said.
Moreover, the Speaker raised China’s role in driving the world economy through its Belt and Road Initiative, which she compared to a hardware to mobilize trade agreements.
“Trade and investments relationships, such as those governed by regional agreements like the RCEP (Regional Comprehensive Economic Partnership), are like the software that provide a framework for world trade and investments to thrive; But we also need the hardware, and this is where the Belt and Road Initiative comes in to provide the brick and mortar infrastructures without which international trade and investments cannot flourish,” she said.
The RCEP is a proposed mega free trade agreement among ASEAN states and six Asia-Pacific states, including China.

PNP chief ‘inclined’ to accept apology of NDFP consultant’s wife

THE CHIEF of the Philippine National Police (PNP) on Sunday said he is “inclined” to accept the apology of the wife of a consultant of communist rebels who was arrested with two others on Nov. 8.
National Democratic Front of the Philippines (NDFP) consultant Vicente Ladlad was arrested by police together with a couple also allegedly linked to the communist movement. They were charged with illegal possession of firearms.
Mr. Ladlad’s wife, Fides Lim, blocked the police van that brought the arrested suspects for detention.
PNP chief Director-General Oscar D. Albayalde said he is considering to file a case against Ms. Lim for obstruction of justice.
“There was an instance na hinarang niya ‘yung [police] mobile na bago mag-file ng kaso (There was an instance that she blocked the police mobile before we filed the case).That could also be tantamount to obstruction of justice because wala naman tayong ginawang masama at nahuli naman ito (because we did not do anything wrong and he was arrested) at we have procedures to follow also. Kailangan rin namang respetuhin nila ‘yung procedures ng PNP in filing cases (They also have to respect the procedures of PNP in filling cases),” Mr. Albayalde said last Friday.
Ms. Lim, posting on social media on Friday night, said, “I hope General Albayalde will find it in his heart to forgive me when his charming wife, Mrs. Albayalde, will also obstruct justice with her bare hands by blocking a police van because he’s imprisoned inside and she knows not where he will be brought, or what perchance will happen to him because of a state malady called evidencia plantida de pulis.
“I’ve had enough of my 3 minutes of fame battling ogres to protect my husband Vic Ladlad, as should fewer wives be doing should the same fate befall their own luckless husbands,” Ms. Lim also said.
“But should the good PNP chief in his surreal wisdom decide otherwise, then media-shy private me who hardly posts anything on Facebook will just have to endure more of the limelight and secure a pro bono lawyer (volunteers please) with a delicious sense of the ridiculous because that is what this case is.”
Mr. Albayalde on Sunday said, “As to the reported apology of Mrs. Fides Lim-Ladlad, I understand her deep concern for the wellbeing of her husband and as a Christian I am inclined to graciously accept her apology. However, I must reiterate we are a nation of laws not of men. And violation of laws has its consequences.”
He added, “The confiscation of high-powered firearms and explosives in the possession of Ladlad and two others is a result of a lawful search made by the police witnessed and certified by officials of the Homeowners Association.” — Vince Angelo C. Ferreras

Ex-PBA coach nabbed for indiscriminate firing

A FORMER coach of the Philippine Basketball Association (PBA) was arrested on Friday for indiscriminate firing in a posh subdivision in Barangay Magallanes, Makati City, an official said yesterday. Dante Silverio, 81, who is also a sports car enthusiast and a businessman, was detained at the city police station after some concerned citizens filed a complaint against him for alarm and scandal, the Southern Police District (SPD) said. Neither Senior Superintendent Rogelio Simon, city police chief, nor the investigator of the case was available for comment. — Philstar
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SC upholds K-12 constitutionality

THE Supreme Court (SC) has affirmed the constitutionality of the K-12 basic education program of the government five years after it was signed into law. In a 94-page decision promulgated on Oct. 9, now retired Chief Justice Teresita Leonardo-De Castro and nine SC justices found Republic Act 10533 or the Enhanced Basic Education Act of 2013 constitutional. — Philstar
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Mayoral bet supporter’s house strafed

STILL UNIDENTIFIED armed men strafed the house of a supporter of a candidate for mayor in Lagayan, Abra Saturday night. Jovie Miranda Sindon, a 50-year-old farmer, together with her family and some visitors were sleeping when armed men fired automatic rifles at the house around 10:30 p.m. No one was hurt in the shooting but crime scene probers found several bullet holes on the concrete walls of the house. — Philstar
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NUPL: ‘Confusing’ times call for more people’s lawyers

MORE than 8,700 law graduates are taking the Bar exams this year — enough to fill the Rizal Memorial Coliseum, as National Union of Peoples’ Lawyers points out. The decades-old human rights lawyers’ group is more than eager to welcome new allies into their ranks, but note that recent events have not exactly been encouraging for the law profession — Philstar
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