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PAGCOR says QC not authorized to regulate gaming, charge entry fees

THE Philippine Amusement and Gaming Corp. (PAGCOR) asserted its exclusive authority under the law to regulate games of chance, after the Quezon City government announced a proposed ordinance seeking to regulate gaming firms within the city.
“The provisions in the law are clear. PAGCOR is vested the authority to ensure that proper regulations are in place so as not to endanger the interests of the country — including cities and LGUs (local government units),” PAGCOR said in a statement issued Tuesday, citing among others Presidential Decree No. 771, which revoked the authority of LGUs to issue licenses and permits for gambling operations.
Quezon City Vice Mayor Ma. Josefina G. Belmonte announced the pending ordinance, which seeks, among other things, to collect entry fees to minimize access to gaming enterprises.
“If the local government of Quezon City abhors gambling — so as to create measures that are beyond its power — it should not have issued Bloomberry Resorts Corp. a Letter of No Objection (LONO) and Resolution of No Objection,” PAGCOR added. Bloomberry is set to build the Solaire Casino on a 1.57 hectare site at the Ayala Vertis North Complex in Quezon City.
The city government issued the LONO to the casino-resort project on Jan. 10.
PAGCOR added that amendments to City Ordinance No. SP-2285, S-2014, allowed the establishment of gaming operations of P1 billion in investment size, and authorized the Office of the Mayor’s Business Permits and Licensing Office to grant LONO to. It noted that the Acting Presiding Officer when the resolution was decided was Councilor Roderick M. Paulate.
PAGCOR added that the Vice Mayor’s concerns about gambling addiction among Quezon City residents is not appropriately addressed by entry fees, which could also lower overall gambling revenue.
“PAGCOR has long been advocating the Code of Practice for Responsible Gaming, which is being adopted by all PAGCOR-operated and licensed entities — in order to minimize the potential harm of gambling to the individual and the community,” it also said. It said based on the Gaming Research & Review Journal published by the University of Nevada-Las Vegas will “drive away recreational gamblers but will make problem gamblers less price-sensitive.”
In response, Ms. Belmonte said she will support the passage of the ordinance despite PAGCOR opposition. Ms. Belmonte said she would “welcome” any attempt to file a temporary restraining order on the ordinance to allow the matter to play out in court.
She said proposed entry fees will be applicable to all gambling operations within the city and will only cover Quezon City residents. She also said the ordinance was modeled after that of Singapore, which also restricts access to locals in its “integrated resorts.”
“The entrance fees are not required for all but just for Quezon City residents (consistent) with the fact that casinos are meant to be tourist destinations… and not primarily for locals. Tourists (will not be) required to submit to the regulatory measures proposed,” Ms. Belmonte said in a statement Wednesday.
She added: “Mayor Herbert Bautista issued a letter of no objection to the casino knowing that this will allegedly comprise less than 5% of the footprint of the proposed entertainment city, but he is one with the city council’s decision to regulate gambling. In fact, the letter of no objection was issued by the mayor with precise instructions to the city council to pass a regulatory measure to discourage locals from going to the casino without prejudice to the tourism directive.”
Bloomberry Resorts Corp. had not issued comment at deadline time. — Charmaine A. Tadalan

NEDA won’t back DA plans to ban palay imports

THE National Economic and Development Authority (NEDA) said it cannot rule out imports of palay, or unmilled rice, by the private sector, after the Department of Agroculture (DA) signalled that it will not allow the practice because of the potential that the shipments might bring in pests or disease.
After Agriculture Secretary Emmanuel F. Piñol said he will not allow palay imports, NEDA said such imports are a “business decision” and could be a source of income for millers.
“On NEDA’s part, we think this is a business decision. The plus side is that it will involve millers in the production,” NEDA Undersecretary Rosemarie G. Edillon said in a mobile message on Wednesday when asked to comment.
“Also we get to keep the husk which can be used for biomass. Offhand, we think it’s all right. We still need to check on the tariff implications,” Ms. Edillon said.
On Tuesday, Mr. Piñol said that the DA has the authority to bar such imports via the sanitary and phytosanitary permit process, which is controlled by the DA’s Bureau of Plant Industry (BPI).
“We will not allow it because (palay imports) could bring in pests and disease through the rice husks,” Mr. Piñol said.
“We still hold the power to determine whether it is safe for Philippine agriculture or not. Nobody can assure us that unmilled rice shipped in will not be harboring disease,” according to Mr. Piñol. — Reicelene Joy N. Ignacio

Open-pit mining investment could have shored up weak FDI, think tank says

AN independent think-tank said investment frozen by the open-pit mining ban could have sustained the Philippines through the recent drop in Foreign Direct Investment (FDI), which fell 4.4% in 2018.
Stratbase Albert Del Rosario (ADR) Institute said that investment in underdeveloped mining sites in the Philippines could have driven economic and regional growth further if only allowed to operate.
“The Tampakan copper-gold deposit in South Cotabato is said to be one of the largest undeveloped deposits in the world, with 2.94 billion tonnes of ore with 0.6% copper content and some 18 million ounces of gold,” ADRI President Victor Andres C. Manhit said in a statement on Wednesday.
“Once developed, the mine has the potential to be a key driver of both national and regional growth, with an average yield of 375,000 tonnes per annum of copper and 36,000 ounces per annum of gold in concentrate over a 17-year period. A simple computation based on prevailing copper and gold prices translates to some P126.6 billion and P24.2 billion in annual potential, respectively,” Mr. Manhit added.
Mr. Manhit noted during the Roundtable Discussion on Open Pit Mining Ban organized with the Department of Environment and Natural Resources (DENR) and the Philippine Business for Environmental Stewardship (PBEST) that 11 pending mining projects in 2016 proposed to invest $23 billion while 2018 FDI amounted to 9.8 billion.
Mr. Manhit said in the statement that the Mining Industry Coordinating Council (MICC) failed to reach a consensus on whether to lift the Department Administrative Order (DAO) 2017-10 which imposed a ban on open pit mining.
“Other pending multi-billion dollar investments include Nadecor’s Kingking project in Davao del Norte, Davao Oriental’s Asiaticus project, Lepanto Mining’s FSE project in Benguet, and Masbate’s Philsaga Mining contract, among others. From a 2016 list of only 11 pending mining projects, the total capital investments is already at $23 billion. Note that according to data from the American Chamber of Commerce of the Philippines, our total Foreign Direct Investments in 2017 was (under) $10 billion,” Mr. Manhit said.
“Bear in mind that these figures, staggering as they are, are just quick estimates of the direct value of mineral resources. They don’t even include the multiplier effect that they bring to the national and local economies in terms of taxes, infrastructure development, employment, and linked industries. Taken together, they can certainly make a serious dent in the government’s poverty alleviation agenda.” — Reicelene Joy N. Ignacio

A new dawn of health care for every Filipino

“Health is wealth” is the quintessential slogan that captures the wisdom behind health care. After months of intensive and careful deliberation in both Legislative Houses, the dream measure of the government was finally signed into law with the vision of providing quality, accessible and affordable health care for Filipinos.
On 20 Feb. 20, Republic Act No. 11223, also known as the Universal Health Care (UHC) Act, was signed with the intent of instituting universal health care for all Filipinos, prescribing reforms in the health care system, and appropriating needed funds for its programs.
As promising as it seems, the UHC law will entail substantial investment spending for medical professionals and workers, medical equipment and instruments, infrastructure and of course medicine. Let’s take a closer look at some of the salient provisions of the new health care law.
PROGRAM MEMBERSHIP
Under the new law, every Filipino citizen shall be included automatically in the National Health Insurance Program (NHIP) as members. Membership consists of two types: direct contributors and indirect contributors.
Direct contributors are required to pay progressive premium rates from 2.75%, for those whose income ranges from the fixed-base of ?10,000 up to an income ceiling of ?50,000 on its initial year of implementation. The premium rates shall be progressively increased in the succeeding years at a maximum projected premium rate of 5% by year 2025 for members with income ceiling of ?100,000. The schedule of projected premium contributions from 2020 onwards are as follows:
Health Care Rates
Nonetheless, failure to pay premium contributions will not prevent members from enjoying benefits. Employers in this case shall be required to pay all missed contributions with penalty interest of at least 3%, compounded monthly. On the other hand, self-employed individuals, which include migrant workers and professional individual practitioners, will be required to pay a maximum of 1.5% penalty interest for missing premium contributions.
The exact premium sharing of both the employee and employer for employed individuals has yet to be determined through the Implementing Rules and Regulation (IRR) of the Act.
Direct contributors who will pay premium contributions are to automatically enjoy additional benefits provided by PhilHealth.
On the other hand, indirect contributors which include indigents, senior citizens and persons with disabilities, will be eligible for the basic health benefit package and are to be covered by the premium subsidy included in the General Appropriations Act (GAA) under the Department of Budget and Management (DBM), the amount of which shall be released to PhilHealth.
HUMAN RESOURCES
The Department of Health (DoH) is tasked to formulate and implement a National Health Human Resource Master Plan that will provide policies and strategies for the recruitment and retention of a sufficient health workforce. Notably, the law specifically included provisions on the return service agreement which requires all graduates of health-related courses who benefitted from scholarship programs funded by the government to serve for a minimum of three years in priority designated areas. The challenge is for the government to come up with a competitive compensation package to entice and retain medical professionals in the program.
APPROPRIATIONS
The effective implementation of the new law will highly depend on the funds that will used in the program. This means that the state must ensure that it has enough funding to provide every Juan dela Cruz his medical benefits regardless of whether the membership is contributory or non-contributory.
Under the law, the government is to obtain the funds for the implementation of the UHC Act from the following sources:

(a) Total incremental sin tax collections as provided for in Republic Act No. 10351 or the Sin Tax Reform Law;

(b) Philippine Amusement Gaming Corp. (PAGCOR), which would be 50% of its income share for the National Government;

(c) Philippine Charity Sweepstakes Office (PCSO) which is to provide 40% of its Charity Fund, net of documentary stamp tax and its mandatory contributions;

(d) Premium contributions of members;

(e) DoH through its annual appropriations as included in the GAA ; and

(f) PhilHealth through its national government subsidy.

There is a funding requirement of P257 billion for the initial implementation, but only a P217 billion allocation was approved by Congress.
With this shortfall, the government has to seek additional funds to augment the budget deficit of P40 billion. Furthermore, the government must take additional measures in sourcing funds to sustain the program in the long-term, especially when the population continues to grow and is expected to reach 110 million by 2020 according to census-based population projection of the Philippine Statistics Authority (PSA). One such initiative sought by the Department of Finance (DoF) is to further increase excise tax on alcohol products and cigarettes by supporting the Sin Tax Reform Proposal that forms part of Package 2 Plus of the TRAIN law.
IMPLEMENTING RULES AND REGULATIONS (IRR)
To efficiently implement the new law, the DoH and PhilHealth must come up with an IRR within 180 days upon the effectivity of the Act, through multi-sectoral consultations with other related government agencies, civil society, and other concerned groups. The Act took effect on March 8, or 15 days after its publication in the Official Gazette.
While the passage of the UHC law provides a ray of hope for Filipinos especially for the less fortunate, it will be a challenge for both the government and members to ensure successful implementation of the program. In this case, there is truth in the adage “An ounce of prevention is worth a pound of cure” — both literally and figuratively.
The views or opinions expressed in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The content is for general information purposes only, and should not be used as a substitute for specific advice.
 
Marvin L. Madrigalejo is a Senior Manager with the Client Accounting Services group of Isla Lipana & Co., the Philippine member firm of the PwC network.
+63 (2) 845-2728
marvin.l.madrigalejo@ph.pwc.com

The long, hot summer

Based on information on the website of the Metropolitan Waterworks and Sewerage System (MWSS), the main sources of Metro Manila’s water supply are the Angat, Ipo, and La Mesa Dams. And, water from these dams go to the La Mesa and Balara Treatment Plants and are turned from raw water to clean and potable water.
Raw water from Angat, the major supply source for the metropolis, goes through about 22 kilometers of pipes to La Mesa Dam and Treatment Plant (about 60% of total volume), and then another 6.8 kilometers of pipes to the Balara Treatment Plan (the remaining 40%). La Mesa can process 2,400 MLD (million liters per day) of raw water, while Balara can treat another 1,600 MLD, to both supply more than “six million people” in the metropolis.
In a column about two years ago to date, I already raised the alarm about Metro Manila sourcing most of its potable water from the Angat reservoir system, which also reportedly sits on the West Valley Fault going through Bulacan. “In case of a major earthquake in the area, or drought, then we lose our water. In fact, unless new supply comes on stream, shortage is already expected by 2020,” I wrote back then.
In a 2013 paper, the Asian Development Bank (ADB) noted that demand for reliable potable water in Metro Manila has increased considerably since 1997, with the aggressive extension of the distribution system by the two water concessionaires: Maynilad Water, and Manila Water.
It added that the estimated number of people served by MWSS roughly 22 years ago or in 1997 was about 6.5 million or 60% of Metro Manila’s population. But, by around five years ago, or 2013, the number of people served with continuous water supply was already close to 13 million.
So, one can already notice the mismatch if the La Mesa and Balara treatment plants can process potable water for only about six million people. Metro Manila’s daytime population is estimated at 15 million, while the number of residents is placed at around 12.8 million, based on a 2015 census. By 2020, it is predicted that Metro Manila will have a population of 20 million, far more than what MWSS can service with drinking water.
dry summer
Obviously, supply is now the big issue. The Balara treatment plant, which supplies Manila Water, can process 1,600 MLD, but demand in its distribution area is reportedly nearly 1,800 MLD already. At the same time, La Mesa Dam’s water level is so low it has reportedly gone below the level of the aqueduct that brings water to the Balara plant.
Weather is an obvious culprit, and perhaps mismanagement of water resources. With a long, hot summer expected, coming months are forecast to be drier. Water supply will go down even further, and more rotating supply cuts can be expected until the rains come.
Unlike rice, and other food, it is highly unlikely for us to “import” potable water. Although, this is not impossible. It is a viable option. Singapore has been “importing” water from Malaysia for almost 60 years now. It gets water from the Linggiu Reservoir, which is fed by the Johor River. Singapore first signed a water supply agreement with Malaysia in 1962, and then renewed this for another 50 years in 2012.
But a big lesson can be learned from what Singapore has been doing meantime, working diligently to ensure self-sufficiency before the new Malaysia supply deal lapses in 2062. This was after noting that the Linggiu Reservoir has been drying up, and is not likely to continue to meet the future demand for water in Singapore.
Almost two years ago to date, I wrote about how Singapore has improved on its “Four National Taps” to boost water supply from (1) Local Catchment, (2) Imported Water, (3) highly-purified reclaimed water known as NEWater, and (4) Desalinated Water. Projects (1), (3) and (4) are all worth considering locally, I believe.
Since 2011, according to Singapore’s national water agency, the country’s “water catchment area has been increased from half to two-thirds of Singapore’s [entire] land surface.” The long-term goal is to increase the water catchment area “from two-thirds to 90% of Singapore’s land area.” And most of this, the agency said, will not necessarily be natural forests or watersheds but will be made up of “unprotected catchments which are land where development is allowed… for residential, commercial and non-pollutive industrial purposes.”
faucet water droplet
And then there is Singapore’s “NEWater”, or producing “high-grade reclaimed water produced from treated ‘used’ water that is further purified using advanced membrane technologies and ultra-violet disinfection, hence making it ultra-clean and safe to drink.” NEWater now supplies 40% of Singapore’s water needs. This is seen to increase to 55% by 2060.
But 2022, Singapore will also complete its “Deep Tunnel Sewerage System” or DTSS, a 48-kilometer “used water superhighway” to bring “used water” to water reclamation plants. Used water is then either treated and purified into reclaimed water or NEWater, or discharged into the sea as clean water.
Moreover, Singapore has put up two desalination plants that produce 100 million gallons daily (roughly 400 MLD) or about 25% of current water demand. A third desalination plant was to be completed in 2017, and a fourth by 2020. With all these plants, desalinated water was expected to supply as much as 30% of Singapore’s water needs by 2060.
Singapore, a hot and humid country like the Philippines, has also been conserving water. Its national water agency noted that despite rising population and demand, per capita domestic water consumption actually dropped to 151 liters per day from 165 liters per day in 2003. The government is targeting to further cut this to 147 liters by 2020, and 140 liters by 2030.
The “Millennium Drought” in Australia from 1996 to 2006, and the continuation of hot-dry conditions until 2009, also prompted the Aussies to build six major seawater desalination plants to provide water to major cities, and resulted to changes in the management of water in catchment basins or areas.
Australia also went into double piping, to allow for greywater recycling. Double piping refers to using a different set of pipes to supply and drain drinking and potable water, and sewage and toilet water. This allowed for greywater recycling. Greywater or sullage is all wastewater generated in households or office buildings without fecal contamination — or all wastewater except those from toilets. Sources of greywater include, sinks, showers, baths, clothes washing machines or dish washers. Greywater can be treated and reused onsite for toilet flushing, landscape or crop irrigation and non-potable uses. They can also be used for fighting fire.
It is not too late for MWSS, and Maynilad and Manila Water, to go beyond waiting for the rainy season and to look into various options to remedy the water shortage. While there are ongoing water supply projects, we should already adopt modes that go beyond harnessing natural water supplies. Singapore, Australia and many other countries around the world can share some of the best practices we can consider.
 
Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council
matort@yahoo.com

Everyday workplace fashion

Clothing is a tool used to visualize and benchmark ourselves and the people around us. The way we dress provides conclusions about our persona, social status aspirations, and level of professionalism. As fashion designer, Rachel Zoe says, “Style is a way to say who you are without having to speak, dress shabbily and they remember the dress; dress impeccably and they will remember the person.”
In the corporate domain, how we handle our clothing practice shapes the image of the company. Modern day businesses have their own mandatory uniforms or if we are lucky enough, the company we work for will let us have our freedom to wear our favorite casual clothes. Now the dilemma comes on how we can infuse style with the bland and boring corporate dress code.
Most corporate dress codes were crafted by decision makers with the ultimate goal of standardization and strict compliance. While the dress code is only one of many workplace policies, it represents the company culture and how management views its employees.
During 1960s, the standard look for women was a plain skirt with stockings or pants partnered with shoes in “thin stiletto heels.” The attempt is to still look feminine, but with a strong resemblance of competitiveness into what was then a male-dominated world.
Style in the workplace can be as difficult as our own work itself. I even ask myself, what happened to the big perms, sequin-encrusted garments, and bright colors of the 1950s when every employee was excited to go to work and felt energized? The “power dressing” trend of the 1990s has turned to ashes due to stringent standard dress code uniforms and it continues to fracture across industries, in terms of formality, as casual wear gains favor over the suits and ties.
The way we dress contributes to either success or failure in the modern workplace culture. “The problem with appearance is that it translates to performance,” says Nicole Williams, a career expert. “Even if your boss doesn’t think that they’re thinking any less of you, they will subconsciously think it.” This realization lead me to wear a sensibly fashionable outfit in the office regardless of the day. It is a form of self-medication, which in return helps me release fragments of everyday workplace stress. It is a distinguishing separation of your everyday “workplace you” vs the weekend “fashion you.”
One of the arguments for stricter dress codes is that if the dress codes relax, so will ethics and productivity. Will wearing sandals instead of two-inch heels lessen someone’s motivation to close the deal? Business consultant, Andrew Jensen, studied the trend toward more casual office attire. He found that some bosses contend that the trend toward business-casual wear can boost morale and camaraderie and even increase creativity by allowing workers to feel comfortable and happy. In others, supervisors say that business-casual can easily be abused and lead to sloppiness, laziness and a decrease in professionalism.
I think a balance can be achieved that will allow for the implementation of a dress code policy wherein a bland workplace uniform can be brought to life through the use of colors, blending neutrals and pop of color combination. Finding the true balance between dress code policy and style can be difficult for us employees due to some restrictions, but we can do both. Well-designed uniforms will immensely propagate the feeling of empowerment. Fabric choices between cotton, polyester, and nylon or the blending of the three will impact the overall comfort of the employees, giving the illusional effect of being loved.
As a stylist, I honestly admire the return of the 1980s style: strong shouldered silhouette, patterned pantsuit, and more vibrant colors. This style reflected how career women and even men made their voices heard and stood strong.
Although some companies offer the freedom of dressing casually, i.e., T-shirts, sneakers, and hoodies, this was, for some, the death knell of the formal workplace dress code policy. A good dress code policy can empower employees, boost morale, and increase the energy and fun of the workplace. This will definitely enhance creativity among teams and individuals.
Clothes are powerful. Ensuring that the company’s dress code allows employees to dress with freedom and style is one of the easiest things an organization can do to show that it values its employees.
This article was written as part of the requirements of the course, Strategic Human Resource Management.
 
Rosalia Hernandez is an MBA student of the De La Salle University Ramon V. del Rosario College of Business.

Reputation has financial value

By Tony Samson
IS REPUTATION considered in financial transactions?
In the bank’s credit evaluation for granting loans, aside from Capacity, Capital, Collateral, and recently Conditions which include matters like industry structure, technology change, market distribution, and regulatory factors, there is also “Character.” The fifth “C” focuses on a borrower’s reputation in terms of fiscal behavior. Does he pay the caterer on time? Does he have extravagant and frequent vacations? Do his employees and suppliers complain about him?
Still, character does not always have good metrics to go by. It’s mostly qualitative, behavioral and covers gossip and social media postings. And then the judgment is probably binary — yes for good; or no for “let’s not take a chance.”
The character of the principal behind a company is critical. In the new field of behavioral economics, the value of character in a corporation is becoming part of the soft metric in picking stocks. It is the emotional part of the decision process that sometimes dominates. This includes the aspects of status, revenge, and even shame for winning or losing out on a deal can drive the negotiation dynamics (and possible overpricing) in an acquisition or merger.
Even the element of luck, superstition, and numerology and astral signs can affect a financial transaction, its timing, and how the office should look. Who is his feng shui master?
Is the character of the CEO of a company worth a premium or a discount? Some positives driving premium pricing includes the CEO’s track record of transparency, work ethic and fiscal prudence. A character discount can come from a reputation of fuzzy accounting, weak second-tier management, over-the-top spending habits (how many corporate planes?), and lack of a succession plan.
Characters as stock pickers also affect market sentiment. A market maker like Warren Buffett “betting all-in on the future of the American recovery” with the purchase of railroad stocks, like the Burlington Northern Santa Fe (BNSF) ten years ago, after the financial meltdown of 2008, can make the bears take flight and change market sentiment for certain stocks.
In our small market, character reigns, and reputations are made and lost among a small group of influencers and peer groups. Stocks are identified by their principals and lumped together as a group, under the banner of its CEO or family group. The difficulties that befall one subsidiary inevitably affect even the group’s holdings in unrelated businesses. Rumors of a takeover of a company by a known player are enough to lift a sleepy stock into the stratosphere or make it go on free fall.
Ties with a now-favored region or country identify new movers that can make rival groups shake (in their boots). Political connections certainly affect character valuations, until a term ends, as scheduled.
With corporate reputation now mostly driven by word of mouth and social media with its fake news, the character impact can be overblown. Reports of social events like the hosting of a wedding and the cost of the food and entertainment have a halo effect on the fiscal reputation of the party-giver. The reaction is not always negative, especially when the previously unknown host is catapulted to the billionaire club. Still, such unvetted sources of information are vulnerable to fake news and planted demolition jobs.
The disproportionate role of reputation in determining the true worth of a company has made self-proclaimed crisis managers much sought after and handsomely paid, sometimes to kill the news. They serve as the guardians and protectors of reputations. “Reputational risk” is such an important consideration in assessing the company’s decisions. Non-business events such as social gaffes at a wedding anniversary or murky associations with low life affect perceptions of business value.
Character analysis is not a static science as personalities in charge also change. New names come up and quickly grow into conglomerates. Old names drop out of the picture. New tech companies rise and fall. Still, it is the track record, sometimes a very short one that determines whether character will play a big part in the valuation of the stock.
In a small market like ours only a small number of players needs to be tracked as closely as the ticker tape, they don’t necessarily talk to each other. And when they start a conversation…is it time to buy or sell? Get the feng shui master on the phone.
 
Tony Samson is Chairman and CEO, TOUCH xda
ar.samson@yahoo.com

Philippine ‘democracy’

By Benjamin R. Punongbayan
DEMOCRACY can be defined in a variety of ways, from definitions with varying complexities to a rather simple one. Let us pick a basic and simple definition: a form of political association among the people of a state within a defined geographical area where sovereignty resides in the people who express such sovereignty by voting to select the leaders of the government of the state.
The ancient Greek philosopher Plato, in his book, Republic, considers a democracy an inferior form of government and holds the view of its likely deterioration into despotism.
Later philosophers have expressed their thoughts about the structures of government. Of particular note are those of Polybius (Roman era) regarding checks and balances, and Montesquieu (18th century) about separation of powers (both referenced from The Great Political Theories [Vol. 1], edited by Michael Curtis).
The most popular country that adopted democracy as a form of government right from its founding is the United States, with its systems of separation of powers (executives, legislative, and judicial) and of checks and balances.
Then the Philippines became a US colony during the term of President William McKinley. Succeeding US political leaders, urged on by Filipino nationalists, prepared the Philippines to a path towards independence. In doing so, the influence of the US was very strong in developing the government structure of the nascent independent Philippines. The resulting Philippine government structure, as promulgated in the 1935 Constitution and retained in the existing Constitution, is substantially a mirror image of the US federal government structure. However, I thought a big mistake was made when the members of the Philippine Senate were made to be elected at large in the whole country. This is very different from the US (Federal) Senate, to where each US state sends two senatorrepresentatives who are elected statewide by each state. It was an unfortunate oversight. It was not a case of differentiating a federal senate from a national senate. The underlying principle is whether the members of a country’s senate (the second legislative chamber) are to be elected geographically (by province or by region, in the case of the Philippines) as it is in the US Senate (two senators from each state).
Interestingly, in my review of the present structures of the state senate (different and separate from the US or Federal Senate) of large US states (California, New York, Texas, and Florida), I find that the state senators in these states are elected by district (one for each district) and not statewide. There are indications that these structures had developed later than the time when the Philippine 1935 Constitution was promulgated. What I want to emphasize is that, even in a US state government itself, the senators in the state senate are presently elected geographically and not statewide.
More interestingly, I find that California imposes term limits for their state legislators. It has the novel practice of requiring a term limit of 12 years for a legislator, the period of which is counted in any combination of four-year state senate and two-year state assembly terms.It appears that this term limit is counted cumulatively and not necessarily consecutively.Therefore, when a state legislator completes a term of 12 years, they cannot run for either the state house or state senate anymore. We should adopt a similar requirement to prevent our own legislators to hop from the Senate to the House or vice-versa and turn around again, ad infinitum.
To this day, the members of the Philippine Senate continue to be elected nationwide. As a result, the provinces have a weaker voice in the Philippine Congress, because the perspectives of Philippine senators are not about specific provincial concerns, unlike their US counterparts whose perspectives are about the concerns of their respective states. Each Philippine senator takes the role of a national spokesperson and postures themselves as the probable next President. No wonder that the national government has been given the sobriquet “Imperial Manila,” in spite of the presence of the people’s provincial representatives in the House.
That said, there is a much bigger concern, though. It is clear to me that Philippine “democracy” has turned into a government of oligarchs, a condition that may turn into despotism as anticipated by Plato. It happened before, during the time of Marcos.
The reason is clear. Voting, the people’s expression of their sovereignty, is not being exercised properly. And our leaders do not seem to care; they probably like it that way. There are two main causes of this existing condition: a voter’s lack of adequate information about relevant issues and problems to enable them to make an informed judgement about who to elect; and vote buying. These two factors actually overlap.
A voter’s lack of adequate information is a consequence of widespread poverty and applies to most voters. As a result of poverty, a large majority of the present adult population did not finish high school and many of them did not even go farther than elementary school. Because of this handicap, they tend not to have interest in acquiring a good understanding of important current problems and issues, not to mention the already existing political, social, and economic conditions. They generally do not read newspapers, which are mainly published in English. The television shows they watch are slapstick programs during the daytime and movies throughout the day. Since they provide the biggest audience for television, television broadcasters match their programs to their tastes and, therefore, continue to produce similar shows over and over. This audience, seldom, if not at all, tune up to programs that deal with political, social, and economic news, views and issues which are expressed in English. In any case, such programs are now rare on mainline TV and are mostly found on cable TV, to which most of the poor do not have connection.
The other cause relating to most voters’ lack of adequate information is the unfortunate existing lack of use of a common language. The government, both national and local, deliberate in English and issue their communications in English. On the other hand, most of the population do not have the appropriate level of understanding of English, because of inadequate education or, simply, they do not use the English language at all. As a result, they are unable to appreciate the deliberations in government; communications issued by government; and news, views, and reports in print media and English TV programs. Had we developed a common language for common use, whether such language be Filipino, English, or Spanish, Filipinos, even the poor ones, may have a better understanding of current events and issues.
Countries in Southeast Asia that were similarly colonized as the Philippines had conclusively dealt with such an important issue. Indonesia, a former Dutch colony, right at the time of its independence, chose a native language, Bahasa Indonesia. Similarly, the former French colonies, Vietnam, Cambodia, and Laos use a native language. Among the British colonies, multi-ethnic Singapore, whose population is predominantly Chinese, chose English. Multi-ethnic Malaysia, predominantly Malay, had decided on Bahasa Malaysia, which is similar to Bahasa Indonesia, many years ago. In Myanmar, the official language is Burmese, a native language.
The lack of adequate information among voters leads to their inability to make well-evaluated personal choices. Instead, they go for name recall, which created the development towards movie and TV personalities getting into electoral contests. Moreover,these voters are also easily influenced and swayed by strong local leaders to support these leaders’ choices, enhanced by vote buying.
Vote buying, the other cause of improper expression of people’s sovereignty, is now common, particularly in elections for local government officials and House representatives. There are standard prices for vote buying in each province or region, depending upon the position being contested. The government is not doing anything about it.
So, under these circumstances, what are the possible solutions? The short-term solutions are obvious, but could not be promulgated and, if already promulgated, could not be implemented, because the decision makers, members of the present oligarchy, will not relinquish their hold on power and so lose their superior political advantages. The framers of the present Constitution did recognize the problem and included provisions in the Constitution that may provide solutions. They provided for the adoption of an anti-dynasty legislation but, which, sadly, has been totally ignored by legislators. They also provided for mandatory term limits, but this requirement cannot stand alone. It has to be paired with an anti-dynasty law to work effectively. Note that these remedies do not even directly deal with the problem. These are indirect measures that merely reduce the size of the problem, because the direct solution of improving the education of the voting mass will take much time, especially under present political circumstances.
The adoption of a language for common use is highly desirable. But it needs a strong leader who recognizes the underlying issue to get the solution, which is necessarily long-term, done.
Vote buying is right in front of our eyes for some time now. But those who can deal with it, don’t.
So, under these circumstances, the only alternative is to wait for the Filipino voters to get better educated and, thus, acquire the discernment to exercise properly their sovereignty by making an informed judgement when making choices in electoral contests. That, of course, will be a very long wait.
We are not a democracy today. We are under an oligarchical rule, with its consequent unchecked abuse of power and promotion of self-interest and the inevitable effects of limiting the sustainability of political and economic growth and development.
We, the sovereign Filipino people, now find ourselves inside a straitjacket. We will stay that way for generations, if we continue to be indifferent. Must we?
 
Benjamin R. Punongbayan is the founder of Punongbayan & Araullo, one of the Philippines’ leading auditing firms.
ben.buklod@yahoo.com

PBA: Magnolia Hotshots earn back-to-back wins

By Michael Angelo S. Murillo
Senior Reporter
THE Magnolia Hotshots Pambansang Manok earned their first back-to-back victories in the ongoing PBA Philippine Cup after defeating the Columbian Dyip, 109-83, on Wednesday at the Smart Araneta Coliseum.
Struggled to have their campaign in the season-opening Philippine Basketball Association tournament to take flight in their first six games, the Hotshots gave themselves a boost with another convincing win over Columbian, their second in a row, to improve to 3-4 in the standings.
The win was in follow-up to their 103-96 victory over the Alaska Aces last time around even as the Hotshots dropped the Dyip to a 5-5 card.
Magnolia jump-started things in the first quarter, racing to a 15-6 lead with 4:15 left in the frame.
It would use it to build a 10-point cushion, 22-12, after the first 12 minutes of the match.
The Hotshots maintained dominance to start the second canto, stretching their lead to 17 points in the first two minutes.
But Columbian found its groove after, going on an 18-4 run in the next three minutes, led by rookie CJ Perez and guard Rashawn McCarthy, to come within three points, 33-30.
The Hotshots though regained their footing, paced by Jio Jalalon and Mark Barroca, rebuilding a double-digit lead anew, 41-30, with four minutes remaining, and a 48-38 advantage at the half.
Columbian came out in the third aggressive, coming closer to four points, 52-48, after just four minutes of play in the frame.
However, much like what they did in the previous two quarters, the Hotshots found ways to separate themselves from the Dyip again.
They went on a 12-4 fightback to go on top by 12 points, 64-52, by the 3:51 mark.
Magnolia took advantage of its newfound wave to make its way to a 75-57 lead after three quarters.
The Hotshots’ steady shooting spilt over into the final canto to keep the Dyip at bay, 83-62, with nine minutes left.
Columbian made attempts to narrow the gap but Magnolia had answers each time.
The count stood at 90-71 with six minutes to go, and the Hotshots still comfortably ahead.
From their Magnolia would not be threatened, moving on to roll to the key win.
Ian Sangalang led the Hotshots with 16 points with Mr. Barroca adding 14 and Rome Dela Rosa 12 points.
Mr. McCarthy was the high point man for Columbian with 19 with Perez adding 14 points.
“It’s all about our desire to win. I talked to the players about the importance of this game and they responded well,” said Magnolia coach Chito Victolero after the game.
“We are not out of the woods yet as we are still below in the standings but I’m happy where our game is right now, especially defensively, than in our earlier matches,” he added.

Lady Eagles steamroll to fifth triumph in a row

By Michael Angelo S. Murillo
Senior Reporter
LIKE a freight train the Ateneo Lady Eagles steamrolled to their fifth straight win in UAAP Season 81 with a four-sets victory over the Adamson Lady Falcons, 25-8, 22-25, 25-16 and 25-10, in their “avian clash” on Wednesday at the FilOil Flying V Arena in San Juan City.
Had it up and down in the first two sets, the Lady Eagles played with more steadiness in the next two frames to put out the fight from the Lady Falcons and improve to a University Athletic Association of the Philippines season-best 5-1 record.
The Lady Falcons had some success to begin the first set, building a 4-0 lead, before the Lady Eagles began exacting their will.
Ateneo went on an 8-1 run after to claim an 8-5 lead by the first technical timeout.
It was all Lady Eagles the rest of the way, outworking and outhustling their opponents for the dominant 25-8 set win.
The start of the second set took a familiar route as the first with Adamson gaining early traction.
But Ateneo would once again beat it at the first technical break, 8-6.
The Lady Falcons though did not allow the Lady Eagles to soar too far, going on a 5-2 run on the lead of veteran Joy Dacoron to overtake Ateneo, 11-10.
Bea De Leon and the rest of the Lady Eagles then responded with a 6-3 blitz to stay ahead, 16-14, midway.
The fight, however, was not over for the Lady Falcons as they fashioned out a comeback, taking a 21-19 lead.
It used it as leverage to go on and take the set 25-22 and level the match at a set apiece.
Recognizing that they let the second set slipped from their claws, the Lady Eagles began the third frame with more aggression.
On the lead of De Leon anew, Ateneo rocketed to an 8-2 advantage, extending it to an even bigger lead, 16-8, at the halfway juncture.
It would not relent on the surge after that to take the set, 25-16, and the 2-1 lead for the match.
The Ateneans met a strong challenge from Adamson to start the fourth set but collectively stayed solid.
Towed by De Leon, Ponggay Gaston and Kat Tolentino, the Lady Eagles created a 16-8 separation.
It was a distance that proved too far to overhaul for the Lady Falcons as they bowed to their second straight defeat.
Gaston paced Ateneo with 16 points with Tolentino adding 15.
De Leon, for her part, had 14 points.
Adamson (1-5), meanwhile, was led by Eli Soyud with 13 points with Dacoron and Chiara Permentilla adding nine points each.
“We really wanted to have this win. We had a short turnaround from our last game but credit to the players for stepping up the way they did today,” said Ateneo coach Oliver Almandro postgame.
Ateneo finishes its first-round assignment on March 16 versus the National University Bulldogs while Adamson will have a date with University of the Philippines Lady Maroons on March 17.

Ceres makes it 2 wins in as many games at AFC Cup

CERES-NEGROS FC maintained its control of Group G in the 2019 AFC Cup with another victory on Tuesday night over Becamex Binh Duong, 3-1, in Vietnam.
Getting a splendid performance from Spaniard Bienvenido Maranon, the “Busmen” made it two victories in as many games in group play of the ongoing tournament to take solid leadership in the grouping with six points.
Mr. Maranon silenced the home team early as he out-witted Becamex goalkeeper Bui Tan Truong, stealing the ball from the latter in the host’s penalty area and tapping it into the net for a Ceres goal and the lead, 1-0, in the 26th minute.
Becamex tried to get back the point for the rest of the opening half, creating some solid opportunities to score, but Ceres continued to hold sway by the halftime break.
At the start of the second half both teams picked up the pace, looking to establish the momentum they needed to seize control of the match.
The home team got the first dent in the second half when Brazilian Wander Luiz pulled Becamex even when he volleyed the ball inside the net in the 72nd minute.
Ceres immediately regrouped though with Mr. Maranon scoring his second goal two minutes later to give back the lead to his team, 2-1.
Mr. Maranon and the Busmen continued to put pressure on Becamex and created further separation, 3-1, in the 78th minute when the Spaniard completed his hat trick with help from teammate OJ Porteria.
Becamex scrambled to make a late comeback on the lead of Wander Luiz but nothing would come of it as Ceres fought off everything that was thrown at it down the stretch en route to the victory,
Following Tuesday’s fixtures in Group G, Ceres (2-0-0) is at solo first place, followed by Indonesia’ Persija Jakarta (1-1-0), Becamex (0-1-1) and Shan United FC of Myanmar (0-0-2).
As per tournament format, the top teams in each of the groupings earn an automatic spot in the Zonal semifinals of the tournament.
Ceres next plays on April 3 against Persija Jakarta at its home field of Panaad Park and Football Stadium in Bacolod City. — Michael Angelo S. Murillo

UAAP 3×3 basketball hailed as step in the right direction by SBP

STAGED for the second straight year this season, the University Athletic Association of the Philippines (UAAP) 3×3 basketball tournament was welcomed not only by alumni schools but also the country’s basketball federation for the key role it plays in fostering the growth of the sport here and establishing the Philippines’ capabilities in it abroad.
In a statement released early this week, the Samahang Basketbol ng Pilipinas (SBP) lauded the UAAP for staging a successful 3×3 tournament held on March 2 and 3 at the Ayala Malls Feliz in Pasig City.
SBP President Al Panlilio cited the efforts of the league to have its own 3×3 tournament in alignment with the SBP and asked other groups as well to do the same to make the country’s 3×3 push a concerted one and reap the corresponding benefits.
“The alignment forged by the UAAP 3×3 organizers with the SBP is what we’ve been actively espousing. We are very pleased that the UAAP 3×3 with their 3×3 commissioner Xavier Nunag and SBP 3×3 program head Ronnie Magsanoc were able to establish a strong link and partnership that benefitted our country in our goal to generate as many points as possible,” said Mr. Panlilio in the statement.
“Remember that 3×3 is now an Olympic sport and that’s why I am calling on all independent 3×3 event organizers to align with coach Ronnie so that they can be guided accordingly on the correct formula in running their respective tournaments,” he added.
Mr. Magsanoc shared the same view even as he said that he was pleased on how this year’s edition of the UAAP 3×3 tournament panned out.
“On behalf of the SBP, we are grateful to the UAAP for helping the national program of the 3×3. Some of the best and brightest 3×3 players traced their roots in the UAAP,” said Magsanoc.
“Players like Ricci Rivero, Juan Gomez de Liano, Thirdy Ravena, Jack Animam of women’s basketball have represented the country playing for the national team. Looking forward to having the discipline as a part of the regular sports competition for Season 82,” he added.
The Ateneo Blue Eagles topped the men’s division of the UAAP 3×3, defeating University of Santo Tomas in the finals, 19-13, while the National University Lady Bulldogs ruled the women’s side, beating the Adamson Lady Falcons, 21-3. — Michael Angelo S. Murillo

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