Facebook Instagram Linkedin X Youtube
Home Blog Page 10253

HIV in prisons, or how a society treats its criminals

The problems in our prison systems are well-documented. These include severe congestion and extreme delays in courts. Another issue is the acute lack of care for their health.

As the overwhelming prison population are poor this is a cause for continued incarceration — no money to post bail as small as P500, and no resources to engage effective counsel and gather evidence in their defense. This also means no financial capacity to take care of their state of well-being. The top five diseases upon entering jails are upper respiratory tract infection, acute gastroenteritis, influenza, and tension type headache.

How bad is the situation? For people who are jailed pending trial and who enjoy the presumption of innocence, there are less than 15 medical officers in the entire Bureau of Jail Management and Penology (BJMP) to attend to more than 200,000 persons deprived of liberty.

This translates to one medical officer for about 15,000 prisoners. If each officer checks on 10 prisoners a day for a calendar year, it will take 40 years to see all of them. That is just an ordinary check and assumes that all medical officers have the requisite skills and training.

The medicine allowance for detention prisoners is P15 per day, or less than P500 a month. Every year, the BJMP makes the case for an increased budget for the needs of the prisoners and each year, the problem festers.

Coupled with congestion and inadequate support facilities, and given that a majority of detention prisoners are arrested for substance abuse, one particular issue that is reaching epidemic level is the transmission of the human immunodeficiency virus (HIV) and other blood infections, including hepatitis, among prisoners because of the sharing of needles for drug use.

High-risk behaviors like instances of male-male sex without the use of condoms compound the problem.

We have an HIV law which was passed in 2018 — the Philippine HIV and AIDS Policy Act (Republic Act No. 11166). Voluntary testing is encouraged. Compulsory testing is allowed when necessary to test a person who is charged with serious and slight physical injuries, rape and simple seduction; or in cases of blood or organ donations.

Informed consent of prisoners is required for HIV testing. Religious beliefs of some prevent their participation in voluntary testing. The stigma, fear, and ignorance around HIV and AIDS are barriers to the need for openness and understanding to address the HIV epidemic in the prison population. Clear laws and policies backed up by competent personnel and adequate paraphernalia are essential to health management of prisons.

Any results of testing are confidential in nature to protect the privacy of those tested. Non-discrimination is enshrined in law but awareness of the causes of HIV that can cause AIDS is low. The public health dimension requires data on persons infected with HIV/AIDS to inform the general populace of the prevalence of the disease.

The recent passage of the Universal Health Care Act is another pillar of support that may include package for drug abuse and use treatment. The affordability of health care remains a key determinant for the maintenance of the health of any cohort anywhere.

In developed economies, no one dies of AIDS anymore. HIV and AIDS are officially treatable diseases that come with a price tag. Early detection is important to refer the infected persons to the properly equipped medical institutions for treatment and care. Too late and it becomes a sentence of death.

Prevention is still the best solution, but with the conditions in our jails with the hodgepodge of regulations, it seems that the HIV epidemic will join the cluster with dengue epidemic and the resurgence of polio.

Truly, Dostoevsky’s observation that “a society should be judged not by how it treats its outstanding citizens but by how it treats its criminals” is amplified by how we treat innocent detention prisoners whose lives are wasting away waiting for their day or night in court that may never come, especially for those who are sick.

Physical death may be a comfort. Mental illness may dull the pain. But suffering is not to be justified by our inaction. Neither should it be institutionalized in our systems that are called to treat and to rehabilitate, to care and to reform.

The timid private sector

With evident pride of accomplishment, economic ministers announced a 6.2% growth in gross domestic product (GDP) in the July-September period (third quarter) compared to the disappointing second quarter growth of 5.5%. It was explained that the second quarter was weighed down by the late enactment of this year’s (2019) national budget and a ban on new public works 45 days before the May 13 midterm elections. “The Duterte administration’s catch-up (spending) plan is working,” enthused Central Bank Governor Benjamin Diokno, former Budget Secretary and chief crafter of the 2019 budget — which was delayed because of alleged “insertions” of reported certain allocations to some government officials’ interests.

But will the year-end GDP growth rate of 6% to 7% be met? “Year-to-date growth averaged 5.8%. A 6.7% expansion is needed to hit the low end of the target… this is very achievable as agencies are likely to spend more by year-end, given a lot of pressure to make up for delays,” National Economic and Development Authority (NEDA) Secretary Ernesto Pernia explained.

In an August press briefing, Pernia said that “for the remainder of the year, the government must speed up the implementation of infrastructure projects under the ‘Build, Build, Build’ program, as only 11 of 38 NEDA Board-approved project proposals out of the 75 infrastructure flagship projects are in the construction phase” (pna.gov.ph, Aug. 8). “And I guess the private sector has also to cooperate, the private sector has to respond in terms of participating in projects and never be discouraged in terms of the long process that usually takes for government, on our part, to process, especially obligated PPP (public-private partnership) projects,” he added.

It is curious that Secretary Pernia seems hot on the private sector to do more than it is already doing for the economy. At the PSA briefing on Nov. 7, he seemed to be using reverse psychology to prod action when he said, “Some may say the private sector is a timid participant in our economic growth. Nothing can be further from the truth. We know that the private sector is the main driver of the economy, with the government providing an enabling environment and the infrastructure.”

The “timid” private sector? Their voluntary and active enlistment in Public-Private Partnerships (PPPs) since Republic Act (RA) 6957, or the Build-Operate-Transfer (BOT) Law of 1990 (later to include Build and Transfer [BT], Build-Own-Operate [BOO], Build-Lease-Transfer [BLT]), shows no timidity, where they were even driven by selfish business profit, as they should be, being businesses. The Public-Private Partnership Center reports that as of September this year, there are 19 PPPs worth P1.064 trillion under implementation and 50 projects in the pipeline amounting to P2.941 trillion (ppp.gov.ph).

One of the more distinguished PPP projects was the privatization of the Manila Water and Sewerage System (MWSS), which is one of the largest PPP of public water utilities in the developing world. Another is the South Luzon Expressway (SLEx) PPP with San Miguel Corp. (SMC) through its South Luzon Tollways Corp. (SLTC).

SLEx was in the headlines before the happy news of increased GDP growth was announced on Nov. 7. “SMC rejects ‘unwarranted’ call to cut SLEX toll amid ongoing construction,” CNN Philippines reported, as other news outlets likewise published SMC President Ramon Ang’s public warning against the Toll Regulatory Board (TRB) technical working group’s threat to demand a “refund” of P44 in the toll collected from Metro Manila-bound motorists due to the kilometers-long traffic gridlock on SLEx. If approved, motorists will have to pay only P5 for the northbound 8.3-kilometer stretch between Susana Heights and Sucat exits, both in Muntinlupa. “It’s a populist idea. But I hope those pushing for this understand and see the bigger picture,” Ang said.

“Suspending toll now would be like punishing a company that, despite still having billions in receivables, has taken the initiative to invest another P10 billion to solve Alabang traffic, once and for all,” Ang said. The Skyway extension being built by SMC (that increases traffic on SLEx for now) will add capacity for 4,500 vehicles per hour on the northbound side, and 3,000 more vehicles per hour on the southbound section. He said the traffic on SLEx heading to Alabang was due to the toll road’s original design limitations when it was built by the former concessionaire.

Ang complained about some P7 billion in forgone revenues accumulated since 2012 for toll adjustments “that were never granted.” Any reduction of toll collection will be an outright violation of its concession agreement and damage its standing with lenders, which SMC taps to finance big-ticket infrastructure projects. “If banks see that government can just stop honoring concession contracts, they will also stop lending to local companies. Investor confidence will go down,” Ang was quoted as saying in the Philippine Daily Inquirer of Nov. 4.

On Thursday last week, the TRB decided to put on hold the proposal for a refund until there could be found a “very clear legal basis” for the reduction, the Inquirer reported.

So, is there a “very clear legal basis” for the government, similarly, to impose fines and penalties on the two private concessionaires for water distribution — Manila Water, a publicly listed company and a subsidiary of Ayala Corp., for the eastern half of Metro Manila, and Maynilad, the Metro Pacific Investments Corp. (MPIC) consortium with DM Consunji Holdings, Inc. (DMCI) for the western area — who signed up with the MWSS to “deliver uninterrupted water supply and compliance with drinking water and effluents standards” until 2037?

At the height of the people’s anger at the extreme water shortage in March, the MWSS publicly called out Manila Water and Maynilad for failure to deliver 24/7 uninterrupted water supply. Maynilad was ordered by the MWSS to rebate P2,500 per household in the severely affected areas, applicable to consumers’ succeeding water bills. In April, Manila Water was similarly told to pay a total of P1.13 billion in fines following massive service interruptions in Metro Manila’s east zone earlier this year.

But the problem is not distribution, but supply, both water concessionaires insist. Metro Manila cannot solely rely on the 40-year-old Angat Dam and needs an alternative water source. Businessman Enrique Razon wants to partner with Manila Water to refurbish Wawa Dam, which can be the nearest major source of bulk water to provide 80 million liters per day by 2021 and 540 million liters daily by 2024 (Bloomberg, March 14, 2019).

Both Manila Water and Maynilad have been pushing for alternative water sources as early as 2007. Wait for the completion of the Kaliwa Dam (approved in November 2018) — “We have an original timeline of 2023, but I want to finish the project by 2022 before President Duterte ends his term,” Reynaldo V. Velasco, MWSS administrator was quoted as saying by BusinessWorld on Dec. 20, 2018.

Rappler columnist JC Punongbayan said on March 13 at the height of the water crisis: “It is this (Kaliwa) project that the MWSS favored over the Laguna Lake project put forward by Manila Water despite warnings it could prove more expensive and already be too late to avert an impending water crisis… This P12.2-billion project is funded by a Chinese loan at interest rate of 2%, eight times higher than Japanese loans, and for which it is required that the dam be built by a Chinese contractor, China Energy Engineering Corp.”

Is the private sector “timid”? Or intimidated?

 

Amelia H. C. Ylagan is a Doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

Momentum: questions and introspections

ON Oct. 23, my three co-authors and I launched our book titled Momentum: Economic Reforms for Sustained Growth.

Our book editor, noted veteran journalist Roel Landingin, explains what it’s all about: “In this collection of newspaper columns published from 2008 to 2019, five of the country’s leading economic commentators — Romeo Bernardo, Calixto Chikiamco, Emmanuel de Dios, Raul Fabella and the late Cayetano Paderanga — put forward observations and recommendations on some of the most intractable problems facing economic progress in the Philippines. But the essays do not always dwell on economic analysis and prescription: they also delve into broader themes ranging from motorcycle riding, US China rivalry; Mark Twain, basketball and working in government among others.“

Why the title Momentum?

In the welcome remarks of the evening, Foundation for Economic Freedom President Toti Chikiamco explained on our behalf:

“Truth to tell, we kicked around a few ideas. Prof. De Dios suggested ‘Wokenomics,’ derived from the current urban slang, ‘Woke,’ which means to be awake and always conscious of perceived injustices. However, after a few discussions and several late night dinners, we settled on the more prosaic but more apropos ‘Momentum,’ with the subtitle ‘Economic Reforms for Sustaining Growth.’”

“The word is appropriately ‘Momentum’ because the Philippines has broken from its boom and bust cycle in the past. It’s cruising along at 5-7% GDP growth, which is among the fastest in the region, and no doubt due to reforms in the past. The big question now is: how to sustain and even accelerate economic growth?

“We hope this book supplies the answer. It’s a curated collection of the author’s articles in BusinessWorld, which they wrote as members of the board of IDEA, or the Institute of Development and Econometric Analysis, the economic research organization that the late Dondon Paderanga founded and where he invited us to be board members. This book is also a loving tribute to our late friend Dondon.

“This book was made possible by friends and supporters. I don’t have to cite them, but they know who they are. They may not exactly espouse the same ideas as the authors, but they share with us a love of country and desire to keep the momentum of economic growth. Thank you again. We promise to distribute the book as widely as possible, perhaps enter it into the public domain after a certain period, to enrich the discourse on the economic direction of the country.”

At the launch at the Fairmont Hotel in Makati, we were most honored by the attendance of such public sector luminaries as former President Fidel Ramos, former Prime Minister Cesar Virata, Central Bank Governor Ben Diokno, Chief Justice Artemio Panganiban, Monetary Board Member Philip Medalla, Representative and Professor Stella Quimbo, Competition Commission Chair Arsenio Balisacan, Senator Serge Osmeña, former Secretaries Gerry Sicat, Roberto de a Ocampo, Gary Teves, Romulo Neri, Popo Lotilla and General Joe Almonte; and business leaders and executives such as Endika and Montxu Aboitiz of AEV, Oscar Reyes of the MVP group, MAP President Riza Mantaring, ECOP President Serge Ortiz Luis, SHEDA Chair Jeff Ng, Bulletin Chair Basilio Yap, BusinessWorld Editor-in-Chief Roby Alampay, Harvard Alumni Association President Anthony Abad ( who kindly and superbly emceed) and others too many to mention.

The book enjoyed generous advanced praise — well deserved for 80% of the book — thanks to my four co-authors, in whose brilliance I happily bask.

Here are excerpts from some of our “reviewers”:

From Chief Justice Panganiban: “If ever there would be a Supreme Court for economic matters, I think the authors of this book easily constitute its members (or at least, some of the more sagacious) and the book would contain their landmark ponentias to be read, re-read and obeyed not only by lawyers and economists but more importantly by the policy makers of our country and the general public as well.”

From Cesar Virata: “Can we present the writings of these ‘raging incrementalists’ before the Executive and Legislative Branches as their certified agenda in July 2019? I encourage readers to adopt advocacies prescribed in this compendium of ideas.”

From Stella Quimbo: “Dear policy maker, do the country a favor. Read this book. It contains the roadmap to economic Shangri-la.”

From former President Ramos’ National Security Adviser, Jose Almonte: “The nation is grateful to the talented economists who are the authors of this book. Their thoughts and writings in the last decade have helped form an intellectual consensus that paved the way for reforms to address the root cause why this country is among the least developed in this part of the world.”

From House Ways and Means Committee Chair Joey Salceda: “A choice selection of illuminating columns from BusinessWorld written in the last decade by five of our country’s most distinguished economists whose counsel I seek before providing advice to Presidents or House Speakers, or more so when I push legislation in Congress.”

From Johanna Chua, Citibank Head of Economics for Asia: “What I find refreshing in these essays is that ardent partisan politics has not obfuscated the clarity of economic arguments. The most seasoned intellects of this country can look through the longer historical lens of experience to form a pragmatic assessment of policy trade offs, regardless of who is running the country.”

From Arsenio Balisacan: “Founded on decades of experience in policy advocacy and rigorous economic thinking, the ideas contained in this book show the way forward for the country to realize its development ambitions. Policy makers, program managers, reform advocate, practitioners, and teacher and students of development and the Philippine economy would do well to pay attention — and act.”

And from Ben Diokno, himself an economics professor and opinion writer-leader, who spoke during the book launch: “The book Momentum, authored by some of our brilliant economists, will surely provide us with insights on the significance of economic reforms for sustaining growth… As I’ve always considered myself a reformist, I laud all the people involved in this book. May we keep the momentum going to achieve sustained, strong, balanced, and inclusive growth.”

Our comrade-in-arms in the Foundation for Economic Freedom, former Finance Secretaries Bobby de Ocampo and Gary Teves, and former National Economic and Development Authority Secretary now Monetary Board Member Philip Medalla, wrote similarly glowing endorsements way of an insightful extended Foreword.

The closing remarks of National Scientist Raul summed the evening and the book: “On behalf of the authors of Momentum, Romy, Toti, Noel, Dondon, and myself, let me express our deepest thanks to all our donors and patrons; to our families; and to the dear friends who took the time to read and comment on the volume… Our thanks go as well to BusinessWorld, the op-ed home of our revolving column, ‘Introspective’; to Roel and Neil who shepherded the publication of the book; to the collective Fellowship of FEF who by joining the often strident policy debates forced us to clarify our own policy stances; and to Dondon’s baby, IDEA, of whose Board we remain members.

“This has been quite a journey, and I am extremely lucky to have had the company of Romy, Toti, Noel, and Dondon while undertaking it: Romy of the boundless curiosity; Toti of the principled pugnacity; Noel of the serene profundity; and Dondon the visionary who roped us more or less willingly into the ‘Introspective’ family.

“Contrary to impression, however, we are not woven of the same ideological fabric: Noel is the committed liberal democrat; I am more of the Deng Xiaoping pragmatist; Toti and Romy are raging incrementalists. Noel’s baccalaureate is Atenista, Toti’s and Dondon’s are La Sallista, Romy’s is Maroonista and mine is Seminarista. Dondon, Romy, Noel, and I but not Toti are bound in the UP School of Economics. Still, the collective light of reason that we seek and that shines on us together is stronger by far.

“A few principles make up the collective light that guides us: that the market and the rule-of-law together can work miracles; that government is best that enables the market; that it is silly to trifle with long-run sustainability; and finally that the Philippines can do much better than recent history suggests.

“Once more, therefore, our profound thanks to all of you, friends and fellow travelers, who joined us in this milestone moment. With you, the journey, if still littered with more failures than triumphs, is itself already a reward. Together, we will continue — to quote Dylan Thomas — to ‘Rage rage against the dying of the light.’”

P.S. The Foundation for Economic Freedom, a co-publisher of Momentum, won the 2019 prestigious Templeton Prize from the Atlas Network — a competition involving think tanks and public advocacy organizations worldwide — on Nov. 7 in New York City, for its work on the removal of restrictions on agricultural patents. The removal of restrictions on about 2.5 million agricultural patents is the subject in one of Calixto Chikiamco’s articles in Momentum.

To order Momentum, call 3453-2375 or send an e-mail at fef@fef.org.ph.

 

Romeo L. Bernardo is Vice-Chairman of the Foundation for Economic Freedom. He was Finance Undersecretary during the Corazon Aquino and Fidel Ramos administrations.

romeo.lopez.bernardo@gmail.com

‘Nothing is intolerable that is necessary’

That was my mantra when I rushed Dodong to the Philippine General Hospital (PGH) via ambulance on that frightening morning of Dec. 29, 2014.

I had never conducted a patient via ambulance since 1980, but there I was, calling the central ICU (CENICU) to prepare the bed and get all that was necessary. He was stuporous, eyes rolled upwards, temperature running at 40. Pure dead weight. There was nothing I could do inside the ambulance but tell the kind driver “bilis-bilisan mo nga! (hurry up!)”

At the PGH entrance, the team was there with the stretcher; at the CENICU, the bed was ready, all the specimen bottles were lined up on the table, and after drawing blood, he got his first empiric antibiotic.

Never did I suspect that he had bacterial meningitis — not too common in this age group with a mortality rate that could go as high as 90%. A spinal tap on New Year’s Eve yielded drops of pus. I sought the expertise of Medy Saniel, our ID (infectious disease) consultant. No hesitation, even if she did not see patients in the pay wards.

Never did I expect the University of the Philippines (UP) President to be seizing 17 times (status epilepticus) and going into cardiac arrest in front of me, literally dead for four minutes. But never did I say “That’s it.”

We were nine doctors in the core team, six medical residents, and fellows for every discipline. And nurses, of course. There was no chaos in this crisis. Each of us was moving in the same direction, always communicating with each other, until the final “Carry out the order” was given by me, as main attending.

The first miracle came after nearly four weeks in deep stupor when Princess said “he turns his head when I call him.” I had to see this for myself. Since he was “awake at night,” I came one night at 10 p.m. and to my delight and disbelief, he gave me his crooked grin. I whispered in his ear “gagaling ka Dodong, pag pasensyahan mo kami kung maraming tusok. Huwag kang maghuhugot ng tubes kasi ibabalik ko rin iyon. Ganoon talaga. (Get better Dodong. Please forgive us for the many injections. Don’t pull the tubes out because I will just replace them. That is how it is.) ”

Milo Roa was able to wean him from the ventilator in spite of his 40 pack year smoking history (or smoking a pack of cigarettes everyday for 40 years). Gap Legaspi drained the fluid in his subdura, Leonard Pascual monitored his neuro status, John Anonuevo stabilized his atrial fibrillation, May Ann Abrahan kept his sugar in control, Alvin Mojica made him stand up in rehab, Rene Tuazon looked at all the orifices in his head to find the source of the meningitis.

The second miracle was his ability to stand up and do simple exercises, insisting that he face the mirror so he could see how he looked. Others would not want to see how they looked, but not Dodong. He said, though barely audible, so full of uncertainty and sadness, “Agnes, I don’t know how Princess and I can shoulder all these expenses.” I said “huwag mong intindihin yon. Maraming tutulong. OK lang. (Don’t worry about it. Many will help. It will be OK.)”

After two months, he was discharged to the UP Infirmary. He stayed there for nearly two months, and described it as “worse than Camp Crame.” He would escape and go to his house.

The third miracle was the full recovery of his mental acuity in spite of his cardiac arrest and bacterial meningitis. I had asked him if he met anyone while he was in a coma. “My father.” But he denied it the following day. I don’t think he believes in after life. Pero sinabi nya iyon! (But he said it!)

So there you are, the living miracle. I thank the family, especially Princess, for being calm when we did our rounds, allowing us to move as we wished and providing all the necessary needs.

To my medical team, we can only look back at the past four and a half years with both humility and pride, as well as a profound sense of gratitude

 

Agnes D. Mejia, MD was Francisco Nemenzo, Jr.’s Attending Physician. She was the Dean of the UP College of Medicine from 2012 to 2018. This testimonial was given on the occasion of the 60th wedding anniversary of former UP President Francisco Nemenzo Jr. and Ana Maria Nemenzo on Oct. 20 this year.

OK kids. This boomer has had enough.

By Tyler Cowen

AS a baby boomer myself, I have mixed feelings about the latest linguistic weapon of generational warfare being deployed against us. Am I OK with “OK Boomer,” the flippant yet passive retort from millennials or members of Generation Z whenever anyone of my generation decries the dangers of e-scooters or overreactions to climate change?

I realize that whether I’m OK isn’t really the question. Still, I would characterize my reaction as irritated, put off, and maybe a bit flattered.

On the positive side, my generation is being treated as a force of nature, a generation so strong and influential that it must be addressed by name. In so many debates today, being insulted is seen as a mark of importance. (For what it is worth, I don’t go around talking about “millennials” or “Generation X” or “Generation Z” very much — this column excepted, I suppose.) Furthermore, as an economist I see the word “boom” as having a generally positive connotation.

On the negative side, I worry that those who deploy “OK Boomer” are putting themselves down and signaling their own impotence. I am not arguing for “[Expletive Deleted] Boomer,” even though it would have a vitality and rebellious spirit very much reminiscent of the 1960s or 1970s (which of course were quintessential boomer eras). But when I read or hear “OK Boomer,” I start to think there might be something special about baby boomers after all. We boomers may not be different in kind from other generations, but we do seem to inspire rhetorical creativity in our critics.

The closest earlier analog to “OK Boomer” is probably “OK, Chief,” a slightly sardonic response to a bossy or persistent request. So the phrase “OK Boomer” is itself an implicit and indeed somewhat passive admission as to who is really in charge. Members of Gen Z are subtly demonstrating that the clichés about them may have a grain of truth.

As I said I am a baby boomer, born in 1962, and I do a lot of public speaking about such topics as the absence of free lunches in this world. Yet I have never heard anyone say “OK Boomer” back to me. Instead I see the phrase on social media — another sign of the essentially passive nature of the response. (And wearing an “OK Boomer” hoodie or buying other such merchandise doesn’t seem like a major sign of rebellion, either.)

If there is any native medium for the “OK Boomer” meme, in fact, it is short TikTok videos, one of the more evanescent forms of social media. That the site seems plagued by Chinese censorship is just another state of affairs that boomers find more offensive than does Generation Z.

My biggest worry about “OK Boomer” is the generational stereotyping it embodies. It wouldn’t be acceptable to baldly criticize older people simply for being old. So why is it OK to use a circumlocution that does the same thing? “You old fogeys don’t have a clue” is perhaps a more direct translation of the phrase, and I am not sure that the ostensibly greater politeness of “OK Boomer” is a virtue. Would we think much of any boomer wearing a T-shirt proclaiming, “Not Impressed, Kid,” “Sure, Kiddo” or “Nice Try, Kid”?

I am greatly pleased that the post-boomer generations are by all appearances less racist and sexist than their predecessors. Still, prejudices are part of human nature. There is always a danger that they will re-emerge, redirected at other targets — defined by their age, their political views, their wealth, the size of their carbon footprint, or some other salient variable. Prejudice doesn’t become acceptable simply because it is not directed at someone’s race, ethnicity or gender.

I don’t wish to use this column to proclaim myself or to ask for anyone else’s “OK,” sarcastically or otherwise. I’ll simply note in closing that the growing age segregation of American society is a great tragedy and a foregone opportunity. If younger generations are looking for yet another good cause, that would be a very good one to embrace.

 

BLOOMBERG OPINION

Carlos Candal and David Ian on the Manila run of CATS the Musical

Carlos Candal (GMG Productions) and David Ian (David Ian Productions) share their thoughts on the Manila run of CATS the Musical and having Joanna Ampil on board as Grizabella.

Probe under way on troubled brokerage

By Victor V. Saulon, Sub-Editor

THE CAPITAL MARKETS Integrity Corp. (CMIC) has placed R&L Investments, Inc. under involuntary suspension as it continues its probe on the stock brokerage that was forced to stop operating after an employee allegedly stole stocks from the firm worth more than P700 million.

“CMIC continues its investigation of the issues extant in this case, and has initiated the conduct of special audits of the pertinent books and records of the involved parties and/or trading participants,” CIMC President Daisy P. Arce said in a memorandum addressed to investors and trading participants on Friday.

The suspension order, which is in accordance with Article X, Section 7 of the CIMC Rules, means a ban on the party under probe from exercising its trading right as well as deactivation of its access to the trading system of the Philippine Stock Exchange (PSE).

R&L is also denied access to its account with the Philippine Depository and Trust Corp. and cannot avail of clearing services from the Securities Clearing Corporation of the Philippines.

“Further, all trading participants are requested to promptly inform CMIC of all pending transactions and contracts with R&L, if any. All relevant information and/or inquiries may be sent to info@cmic.com.ph,” said the compliance arm of the PSE.

Separately, the Securities and Exchange Commission (SEC) said it would “closely monitor” the issue as CMIC continues its investigation.

In a statement, the SEC said it was aware of the issue while leaving CMIC to investigate the alleged theft that nearly wiped out the position of R&L.

“The SEC expects CMIC to conduct a thorough investigation to unearth the truth behind the transactions in question, identify all parties involved, and uncover the extent of the damage to the stock brokerage, its clients and the overall market,” the corporate watchdog said in a statement.

It said CMIC acts as the independent audit, surveillance and compliance arm of the stock exchange in line with its mandate to reinforce the confidence of the investing public in capital market institutions.

“The investigation should also provide clarity as to how such transactions could have slipped past multiple control measures. For one, the 2015 SRC Rules requires broker dealers to conduct monthly security examination, count and verification to account for discrepancies,” the SEC said.

As a self-regulatory organization, CMIC enforces Republic Act No. 8799, or the Securities Regulation Code (SRC), and the pertinent rules and regulations. Its powers and functions include the investigation and resolution of violations by trading participants of the securities law as well as trading-related irregularities and unusual trading activities involving issuers.

The SEC said it expects the full rollout of the Name on Central Depository (NoCD) facility of the Philippine Depository & Trust Corp. (PDTC) by the first quarter of 2020 to reinforce the controls and deter similar incidents from occurring in the future.

The NoCD facility allows for the recording of securities at PDTC in the name of individual investors. Most securities at present are recorded in “omnibus accounts” that aggregate the holdings of all investors.

“The creation of sub-accounts under the NoCD arrangement will increase transparency in the trading of securities. It will also give investors a means to monitor movements in their accounts through SMS or email notifications,” the SEC said.

The commission said it was also in talks with PDTC for the creation of a mechanism that will allow the latter to provide monthly reports on a stock brokerage’s position directly to the board of directors.

WEB
Ma. Vivian Yuchengco, a director of the bourse and chairman of the Philippine Association of Securities Brokers and Dealers, Inc., said current investigations are trying to determine the extent of the problem.

“The volume is now about P2 billion-plus selling and this is only P750 million that we’re looking at, so there must be some other people involved,” Ms. Yuchengco said in an interview with ABS-CBN News Channel.

“In R&L, there’s only one employee that’s rogue, but there can be other houses where the same thing is also happening. So we’re checking because they used another broker to sell the shares. So we’re checking all the transactions of that broker to see if it’s only R&L or if there are other brokers involved. That’s why we’re asking all the other brokers to check their books,” she explained.

“The reason for this problem of R&L is they entrusted everything to one person,” she noted.

“You cannot do that in a brokerage.”

Sought for comment, Summit Securities, Inc. President Harry G. Liu said it is the responsibility of those with a stock brokerage to have “organization and control” of their business.

“You need audit — internal, external — you need two signatories. Hindi naman pwedeng isang tao lang (You cannot have just one person) who has all the power,” Mr. Liu said. “Everybody has to follow certain standards.”

He said all aspects of the business should be controlled, while check and balance should be in place, including accounting, internal audit, information technology, backroom operations.

“Then we report to the PSE every month. That should be counter-checked,” he said, adding the report should not be “one and the same — that is standard.”

“Trust is important, but if you start to become lenient, pinapabayaan mo ‘yung kompanya mo, of course, may mangyayari n’yan (you become lax in your company, of course, something will happen). Parang bahay — alam mo naman may magnanakaw, pinapabayaan mong bukas ang pintuan (It’s like your home — when you know there are thieves yet you leave the door open). Of course you are open to mistakes,” he added.

“Something like that is a mistake on the part of the organization of that corporation. That is how I look at it.”

PNB Securities, Inc. President Manuel Antonio G. Lisbona said his firm has “robust safeguards in terms of policies and procedures in place to ensure that our clients are protected.”

“The R&L case is unfortunate, but is not reflective of the PSE nor its trading participants,” Mr. Lisbona said.

“At the very least, in our back office system, we have a ‘maker/checker’ control in place to ensure that no individual can encode, check and approve a transaction. Therefore, there will be several pairs of eyes that will process a transaction. This goes for our parent bank as well.” — with Vincent Mariel P. Galang

MWSS assures Razon firm of action on Wawa dam proposal

THE GOVERNMENT REGULATOR has assured that the Wawa bulk water supply project is up for final approval, Prime Metroline Infrastructure Holdings, Corp. (Prime Infra), the water company led by businessman Enrique K. Razon Jr., said on Friday.

The company said it was told by the Metropolitan Waterworks and Sewerage System (MWSS) that the project, which is supposed to be Metro Manila’s new source of water, remains a major flagship project of the Duterte administration’s water security program.

“We are ready to move forward and have been proactively working with all stakeholders, public and private, to progress this project since 2018. Wawa is the fastest and least expensive water source development and comes at no cost to the government,” Mr. Razon said in a statement.

Prime Infra quoted MWSS Chairman Reynaldo V. Velasco as saying that the Wawa dam “is an integral part of the overall short-, medium- and long-term water flagship projects of MWSS to ensure water security.”

The project is expected to supply an additional 80 million liters per day (MLD) in 2021 and more than 500 MLD in 2025.

The company also said that the former administrator of MWSS had promised that the board of the agency would “tackle and approve” the project to help address the water supply deficit in the eastern zone of Metro Manila under the concession of Manila Water Company, Inc.

Mr. Velasco did not immediately respond when asked to confirm Prime Infra’s statement.

In the past, he had been vocal about supporting the Wawa dam project and had even asked its previous proponent to partner with Mr. Razon’s group, which is now the controlling entity. He had also backed the inclusion of Manila Water in the project.

Prime Infra quoted Mr. Velasco as saying: “We are in a catch-up mode as far as water supply source is concerned. Wawa Dam, which used to be the water source for Metro Manila before Angat Dam was completed on 1967 and became operational, has been identified by water experts as the best potential water supply source for Metro Manila.”

The Wawa bulk water supply project is a joint venture between Prime Infra and San Lorenzo Ruiz Builders and Developers Corp. of Oscar I. Violago. They signed an off-take agreement with MWSS and Manila Water on Aug. 6, 2019.

“Since the signing of the agreement, public consultations have been conducted by the MWSS Regulatory Office. These public consultations gave the public the opportunity to learn about the project details as well as the tariff impact,” Prime Infra said.

It said the changing of the guard at the MWSS contributed to the delay in the development work of the Wawa dam project. It added that final approval is awaited on the supplemental agreement that was submitted to the regulator on Sept. 13.

“It is a necessary document for the agreement on the outstanding issues on penalties, access road responsibility and metering protocol. It is the remaining document to make the project fully effective and enable the project proponent to proceed in the development work,” it said.

Prime Infra said the MWSS received on Nov. 7 the favorable opinion from the Office of the Government Corporate Counsel on the remaining conditions precedent to make the project fully effective. — Victor V. Saulon

VP vows to enforce anti-drug drive within the law

VICE President Ma. Leonor G. Robredo on Friday vowed to enforce the state’s anti-illegal drug campaign “within the bounds of the rule of law.”

“I am all for a strong national policy against illegal drugs and Iam all for a vigorous anti-drug campaign but having said that, I also feel that we need to do things right,” Ms. Robredo said at a briefing streamed on her Facebook page.

“Everything we’re doing should be within the bounds of the rule of law,” she said before meeting with Philippine Drug Enforcement Agency (PDEA) Director General Aaron N. Aquino, her co-head in an interagency task force against illegal drugs.

Ms. Robredo said she would treat the drug problem not only as a crime, but also as a health issue.

The meeting that she called was meant to give her access to data on the drug campaign.

Ms. Robredo again cited the need to re-assess the government strategy against illegal drugs given the rising number of drug dependents.

She said she viewed her appointment by President Rodrigo R. Duterte “as a signal that the president is open to listen to a fresh perspective about the entire campaign.”

Ms. Robredo on Wednesday said she had agreed to head the Duterte administration’s anti-illegal drug campaign, if only to stop the killings.

The vice president accepted the post against the advice of many of her party mates, who said the appointment might be a trap.

She said she had accepted the president’s offer to become his drug czar — even if this could just be politicking — so she could save innocent lives. — Charmaine A. Tadalan

Maguindanao massacre ruling out by December 20

THE Supreme Court has extended the deadline for a ruling on a decade-old case where more than 50 people were massacred in Maguindanao province, Chief Justice Diosdado M. Peralta said on Friday.

“We allowed her to have an extension of one month,” the chief magistrate told CNN Philippines, referring to the trial judge who sought the extension.

Quezon City Judge Jocelyn A. Solis-Reyes asked for 30 more days to rule on the murder case against Datu Andal Ampatuan, Jr. and more than 100 other people, citing “voluminous records.” She was allowed to issue a decision by December 20 instead.

The case records have reached 238 volumes, — 165 volumes of records on the trial, 65 records of stenographic notes and 8 records containing the prosecution’s documentary evidence.

“You know very well that there are so many accused and there are so many victims in that case but we also allow meritorious motions for extension and we understand her predicament,” Mr. Peralta said.

The trial court earlier rejected a plea by Mr. Ampatuan, the primary suspect in the massacre of 58 people, including 32 journalists, in the town of Ampatuan in Maguindanao province on Nov. 23, 2009 to re-open the trial.

The ambush took place when media accompanied then gubernatorial candidate Esmael G. Mangudadatu and his family to the election body where he was to file his certificate of candidacy. Mr. Mangudadatu was then planning to challenge Datu Unsay for governor of the Autonomous Region in Muslim Mindanao. — Charmaine A. Tadalan

Christmas product prices steady, DTI says

THE prices of 134 products that many Filipinos consume during the Christmas holidays have remained stable, the Trade department said on Friday.

In a statement, the agency said prices of so-called Noche Buena products have steadied, while the prices of six products have gone down this year.

These products include keso de bola, cheese, sandwich spread, mayonnaise, pasta spaghetti, elbow and salad macaroni, spaghetti sauce, tomato sauce and creamer products.

The agency issued the statement after reports that prices of at least 92 products have increased.

Trade Secretary Ramon M. Lopez said prices of brands for mass-based markets “do not usually change.” “This is due to their fear of competition and the probability of losing market share in a price sensitive segment,” he said in the statement.

“I advise consumers to choose the products they find value for themselves and their family,” Mr. Lopez said. “It is advised to do the Christmas grocery shopping early and avoid the holiday rush.” — Arjay L. Balinbin

Japanese investors keen on PHL retail, real estate, bankers say

JAPANESE investors are seeking opportunities in Philippine retail, real estate and consumer finance, a Japanese banker said.

At a news conference in Makati City, Mitsubishi UFJ Financial Group Inc (MUFG) managing director and Philippine country head Yuichi Yamagishi said: “The retail, real estate, area, or consumer finance areas and also fast food and infrastructure…these are what Japanese companies are focusing on.”

MUFG’s Philippine strategic partner is Security Bank Corp.

Another official said the main drivers of Japanese interest are the young population and a growing economy, while the negatives are centered on tax policy and infrastructure.

Security Bank Corp. Alliance Segment Head Takahiro Onishi added: “When the Japanese talk about the Philippines, they always talk about how young the population is and how much they’re growing the size of the population… so they’re always counting on the demographics and the population growth and I guess the domestic growth based on consumption. So that’s where the business is.

“Whether they are new to the Philippines or they have already invested here… (the) first (concern) is the issues… especially the manufacturers who are in the PEZA (Philippine Economic Zone Authority) zones… and that is being discussed right now. And that may change (their level of interest) and that is keeping the companies concerned,” he said.

“They are not entirely sure about the policy… (Does) the Philippine government… actually want foreign companies to come in and invest? Or are they prioritizing the prosperity of local companies instead of inviting more and more investment,” Mr. Onishi added.

House Bill 4157 or the Comprehensive Income Tax and Incentives Rationalization Act (CITIRA) — which will progressively reduce corporate income tax to 20% by 2029 from the current 30% and remove tax incentives deemed redundant — has been approved in the House of Representatives. Its counterpart bill is still pending in the Senate.

Finance Undersecretary Karl Kendrick T. Chua has said that Department of Finance (DoF) expects the lower income tax packages to encourage companies to invest their savings in expansion, which has the potential to generate about 1.5 million additional jobs.

Meanwhile, The Department of Trade and Industry (DTI) backs a five-to-seven year transitory period for economic zone locators, as well as a seven to 10-year transition period for companies with at least 3,000 employees.

Infrastructure is a concern, according to Mr. Onishi, because “this would affect logistics, the transportation of their goods, how do they store their goods and maintain the quality of the products both when they’re being stored and when they’re being transported to other places,” he said.

In 2016 MUFG bought a 20% stake in Security Bank and has sought to leverage its relationships to offer business-matching between Japanese and Philippine companies.

Security Bank closed unchanged at P203 on Friday. — Luz Wendy T. Noble

1...10,25210,25310,254...14,238Page 10,253 of 14,238
ADVERTISEMENT
ADVERTISEMENT
© 2024 BusinessWorld Publishing.
All rights reserved.
Read our privacy guidelines
Facebook Instagram Linkedin X Youtube