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BoC revives Balikbayan Box tracking agreement

THE Bureau of Customs (BoC) launched Wednesday a tracking system for balikbayan boxes going through stages of clearance at the agency as a measure to streamline operations and reduce “scams” in their processing.

Assistant Commissioner of the Post Clearance Audit Group Vincent Philip C. Maronilla told BusinessWorld that parcels and balikbayan boxes can now be tracked through the Balikbayan Box Tracking System (PBTS), which can be accessed through the BoC website.

PBTS was launched on Wednesday.

“The system can provide updates about the parcel or balikbayan box as it goes through the different stages of customs clearance which also enables the Bureau to monitor the efficiency of BoC officials and personnel,” BoC said in a statement yesterday.

Mr. Maronilla said that the users can check on the status of parcels and balikbayan boxes through their respective tracking numbers.

The shipments have time stamps to allow quick identification of delays.

“The parcels have timestamps so we can also monitor ‘yung mga tao namin kung pinapatagal nila yung processing, bakit nagtatagal, may reason din dun (we can monitor our personnel who may be delaying processing and determine the reason behind the delay),” he said.

A link directed to the Department of Trade and Industry (DTI) is included in the website to provide users a way to check if the forwarding companies or consolidators are legitimate.

“It’s a very helpful tool and it’s very timely,” he added.

Mr. Maronilla said the balikbayan box tracker was first launched in 2015 but the BoC had to shut it down to fix some issues and expand the system to allow it to also track parcels.

“Around 2014-2015, we had a balikbayan box tracker that we launched linked up with the DTI bat nagkaroon ng problema dun sa search engine nya (but we encountered a problem with the search engine) when the forwarders stopped sending the data that we required,” he said.

Separately, Finance Secretary Carlos G. Dominguez III said he will order the BoC to “alert their counterparts in China and all the ASEAN countries to the practice of exporting untaxed cigarettes” to the country.

“We are increasing vigilance against non tax-paid cigarettes from all sources,” Mr. Dominguez told reporters in a mobile phone message on Wednesday.

Recently the BoC and Bureau of Internal Revenue (BIR) seized millions of pesos worth of tobacco products.

On Wednesday, BoC seized P95-million worth of 2,727 master cases of smuggled cigarettes in Sulu while the BIR confiscated around 145 master cases containing around 1.45 million sticks of Chinese cigarette at a warehouse in Binondo, Manila on Oct. 25.

Republic Act No. 11346 was signed in July, increasing the excise tax on tobacco products to P60 per by 2023 from the current P35. — Beatrice M. Laforga

NCR retail price rise muted in Aug. — PSA

THE retail goods prices in the National Capital Region (NCR) rose 0.8% year-on-year in August, following a 3.1% increase a year earlier, the Philippine Statistics Authority (PSA) reported Thursday.

Year-to-date, the general retail price index (GRPI) rose 1.2%.

On a month-on-month basis, August GRPI rose 0.1%, the same increase recorded in July.

Food registered a 1.2% increase, much less than the 3.7% increase in the same month last year.

Chemicals, including vegetable oils and fats, rose 0.9%, while machinery and transport equipment rose 0.4%. In the same month last year, these commodities rose 0.9% and 1%, respectively.

The highest increase was in crude materials, inedible except fuels, which rose 4.1%. This is the only commodity that grew faster than its year-earlier rate. In August 2018 prices here grew 1.8%.

Meanwhile, mineral fuels, lubricants and related materials fell 4%, declining for a third month. The commodity rose 19.1% in the same month last year.

Beverages and tobacco rose 2.2% after rising 11.5% a year earlier.

Rizal Commercial Banking Corp. (RCBC) chief economist Michael L. Ricafort said that the easing of retail prices in the region reflects the easing of overall inflation.

“The latest easing in Metro Manila retail prices largely correlates with the easing of the overall headline inflation, especially the lower prices of food especially rice, oil petroleum products, and the stronger peso exchange rate,” he said in a e-mail.

He also noted the higher year-earlier base slowed price growth.

Headline inflation was 1.7% year-on-year in August.

The more muted increase in retail prices compared to headline inflation, Mr. Ricafort said, may be due to increased competition among retailers.

This competition, he said, “would have reduced the pass-on costs/inflation to consumers, as producers may have to absorb higher costs when inflation was higher… with less pass-on to consumers on the retail level, thereby leading to much slower prices increases/inflation at the retail level,” he said.

Mr. Ricafort said improved supply may have also caused the “relatively benign” retail inflation.

Security Bank Corp. chief economist Robert Dan J. Roces said that the year-to-date GRPI increase for NCR in August reflects solid consumer demand.

“Year-to-date GRPI growth of 1.2% shows that the retail trade sector is alive and well (due) to positive sentiment of household consumers owing to slower inflation. Retailing accounts for almost a fourth of the services sector making it a major growth driver,” he said.

“With improved macroeconomic fundamentals and favorable consumption base, we expect this to remain positive alongside the expected expansion of the economy in the fourth quarter of this year and well into 2020.”

Mr. Ricafort said that easing inflation in retail products benefits consumers, whose spending accounts for about 70% of the economy.

“This would help sustain consumer spending’s resilient growth as seen in recent quarters and, in turn, would put consumer spending a better position to further add to its huge contribution to the overall economy, thereby leading to faster GDP growth (from a 4-year low of 5.5% in 2Q 2019), going forward.” — Jenina P. Ibañez

US-China tensions spur progress on giant Asia trade agreement

BANGKOK — Tensions between the United States and China have given new impetus to a China-backed trade pact and there is a chance of major progress, if not final agreement, when Southeast Asian leaders meet in Bangkok later this week, analysts say.

The Regional Comprehensive Economic Partnership (RCEP) could become the world’s largest free trade zone, comprising 16 countries that account for a third of global gross domestic product and nearly half the world’s population.

Progress since talks began in 2012 has been slowed by disagreements between members, such as major Indian concerns over a possible deluge of imports from China. The pact also includes the Association of Southeast Asian Nations (ASEAN), Australia, Japan, New Zealand and South Korea.

Analysts said the pace of discussion on remaining issues had quickened this year, as the US-China trade war sharpened concerns over both economic growth and regional security.

“We are hearing that there is light at the end of the tunnel and it is already a short tunnel,” said Tang Siew Mun, head of the ASEAN Studies Centre at the Yusof Ishak Institute in Singapore.

“The momentum is now there for the politicians to get this done,” he told Reuters.

Thailand, which currently chairs ASEAN, said this month market access talks were 80.4% complete and members had agreed on 14 of a total of 20 chapters. Talks with RCEP members will follow the ASEAN summit, from Oct. 31 to Nov. 4, in Bangkok.

“Some Southeast Asian nations would like to show that they can keep the regional integration show on the road, despite the US-China tensions,” said Benjamin Bland, director of the Southeast Asia project at the Lowy Institute in Sydney.

In Asia, China is not alone in feeling the pressure of the trade war.

Although some companies have moved production from China to escape US tariffs, the International Monetary Fund (IMF) forecasts growth in ASEAN’s top five economies will fall to 4.8% this year from 5.3% in 2018. It expects India’s growth to slow to 6.1% from 6.8%.

Countries that used to rely on the United States as a counterweight to China’s growing regional dominance are also increasingly doubtful if they can.

RCEP members including India, Japan, Malaysia, South Korea and Thailand all have large trade surpluses with the United States — a bugbear for President Donald Trump.

US-Thai trade relations have been strained, with Washington withdrawing trade preferences on $1.3 billion in Thai goods last Friday, accusing Thailand of failing to protect workers’ rights.

‘WARNING SIGN’
“The trade tensions should be the final warning sign that Asia needs to have a collective platform and a place for engaging in economic issues,” said Deborah Elms, executive director of the Asian Trade Center based in Singapore.

It would be a “massive missed opportunity” if leaders did not announce the success of the pact at this week’s meeting, Elms added.

The RCEP trade deal aims to build on the free trade deals that Southeast Asian countries have with other members.

It has been widely seen as a China-supported alternative to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which covers 11 countries across the Pacific — though Trump pulled the United States out of talks before it was signed.

RCEP, seven of whose member nations are also in the other agreement, is less ambitious in terms of the areas of trade that would be freed up and the conditions participants must meet.

But it is still expected to provide a major boost to regional trade, besides being symbolically important, as the Trump administration challenges multilateral trade deals.

“Completing the RCEP negotiations as early as possible is of great significance to the long-term stability, prosperity and development of the region,” Li Chenggang, China’s assistant commerce minister told reporters in Beijing on Monday.

“The negotiations are currently in the final sprint.”

Chinese Premier Li Keqiang is confirmed to attend the Bangkok meet, while the United States has yet to announce any representative more senior than Assistant Secretary of State David Stilwell.

Last year, US Vice-President Mike Pence joined the meeting with Southeast Asian leaders in Trump’s place.

Other issues that may figure at the Southeast Asian summit include the standoff between China and several regional states over its sweeping maritime claims in the South China Sea, as well as Myanmar’s treatment of Muslim Rohingya after a military crackdown drove more than 700,000 into Bangladesh in 2017. But with Thai hosts keen to show progress on the RCEP deal, analysts and diplomats say it is shaping up as the most important issue in Bangkok.

“ASEAN hopes to at least be able to announce that substantial progress has been made, to ensure momentum is sustained,” said Peter Mumford of risk consulting firm Eurasia Group. — Reuters

Let’s do more for financial literacy in the Philippines

By Michael Singh

THE PHILIPPINES has recently been plagued with fraudulent and unethical online lending behavior. This has prompted fintechs in the country to take much needed measures to combat issues related to financial literacy — like introducing industry standards for responsible lending following a circular by the Securities and Exchange Commission (SEC).

Industry players holding themselves to a higher standard is a drastic effort to address the mushrooming fraudulent organizations breeding in the Philippines, but it’s also a symptom to a problem that has long plagued the ecosystem.

UNDERSTANDING FINANCIAL LITERACY
Many Filipinos have low income. According to the World Bank, less than 10% of the population could be considered middle class in 2015 — a figure that has remained fairly stagnant since 2002.

Part of the reason the poor stay poor is a lack of financial literacy.

Even the most responsible Filipinos are placed at greater risk when attempting to access credit needed to rise above poverty or go up in social class, as the majority of Filipinos have or will take on debt. According to a survey conducted by the Bangko Sentral ng Pilipinas (BSP) in 2015, only 19.1% of adults do not borrow at all. And those who borrow greatly prefer informal sources over banks; 61.9% of them borrow from friends and family, and 10.1% borrow from informal lenders.

Furthermore, a World Bank survey in 2015 discovered that Filipinos who are knowledgeable about financial matters are more likely to report that they have money left after paying for basic necessities, and less likely to say that they’ve borrowed beyond their means.

Financial literacy, unfortunately, is a double-edged sword. One has to have disposable income to learn how to use it. But to have disposable income, Filipinos need to apply financial knowledge.

Breaking this cycle is, in parts, why BSP launched the “Economic and Financial Learning Program” (EFLP), a flagship initiative to introduce financial education to students, working adults, overseas workers, and unbanked populations.

HOLDING CLASSES IS NOT ENOUGH
That’s all fine as a first step, but as pointed out in a January column in the Manila Times, focusing solely on education won’t work to curb the underlying issues in financial literacy.

“Passing a financial literacy class does not make you a good money manager. The one major reason why so many of us are so bad with handling our finances is not because we are financially illiterate but because of the way we behave. So, ultimately, getting better with our money is about changing our behavior.”

While I agree with the premise, I would like to adjust that line of thinking slightly. The term “financial inclusion” shouldn’t just focus on imparting knowledge, but inoculating behaviors as well.

Marketing experts Daniel Fernandes, John G. Lynch, Jr., and Richard Netemeyer found that increasing financial literacy only had a measly 0.44% impact on subsequent financial behavior in their meta analysis looking at over 200 studies on financial literacy.

The results may be surprising at first glance, but they clear up upon critical consideration. Financial education is often imparted in courses and seminars covering multiple topics at once. When participants get back home, they face the herculean task of having to put all of these lessons into practice at once. It is much easier for them to fall back into poor habits that have been built over time. Without supervision, without immediate gratification, and without practice, people will forget what they learned in these courses and seminars.

WHERE FINTECHS PLAY A PART
Behavior change is exactly where fintechs shine. Fintechs are able to cultivate healthier financial education in a more practical sense, and without bogging down users with too much information in one go.

Teaching users as they go is the best way to encourage “stickiness,” and simultaneously teach users financial literacy in a more practical sense.

There are fintechs, for example, that enable consumers to pay for household goods in installments, which indirectly allows Filipinos to build the habit of honoring their short-term loans every month before they make higher-stake commitments like auto loans.

The experience of taking out a loan, receiving reminders about timely payment, and better products and repayment terms as a result of good repayment behavior are some ways fintechs help to set in motion a true financial education experience for users.

Fintechs can’t succeed in isolation, however. The ecosystem needs to play its part to bolster the fintechs’ role.

Policymakers and regulators need to mandate financial inclusion as a national interest and introduce policies with that vision. Activists and NGOs often serve the lowest income populations, and need to play a key role in financial literacy. Entrepreneurs and fintechs need to offer solutions with consumer protection at its core, and banks need to utilize modern advancements to open up financial services to underserved markets.

The magic happens when we talk to each other. All of these disparate voices need to be heard by all industry participants so that we can better service our particular piece of the financial education puzzle.

Contributing to their end of the puzzle, fintechs should place consumer protection at their core and implement an internal Code of Ethics. The digital lending industry needs to operate within a set of acceptable global standards, and advocate for upfront, transparent and responsible lending practices.

AsiaKredit, for example, adopts Code of Ethics standards such as the Smart Campaign for responsible lending by the globally recognized Center for Financial Inclusion (CFI) at Accion. In developing their own Code of Ethics, fintechs should look to the Smart Campaign’s Client Protection Principles such as prevention of over-indebtedness, need for transparency, fair and respectful treatment of customers, data privacy management, and complaint resolution mechanisms. We assign each of these principles to a specific member of the executive team, where he/she “owns” the principle and its execution. The team meets monthly to review the principles and report on the initiatives that have been launched, are in development, or are to be developed, with the end goal of reaching 100% execution of the principles, which are, not to mention, tied to their individual performance review.

I should note that these measures outlined for Philippine industry players aren’t set in stone. For example, the central bank and NGOs can always tweak their methods to exemplify more behavior-changing methods instead of just imparting knowledge.

However, I would like to highlight its importance.

According to the World Economic Forum, the Philippines’ middle class is on track to outspend Italy’s by 2030. We have a growing tech-savvy population, a snowballing digital economy, and a robust regional trading network. Financial literacy is crucial to ensure that those who rise in their economic status don’t slide back into poverty.

 

Michael Singh is the CEO and co-founder of AsiaKredit.

Power play

The Marcoses have been asking for closure on the public debate over their late patriarch’s martial law regime and its impact on Philippine politics, culture, and economy — and most of all, on the Filipino people’s lives and fortunes. Many are buying into the idea of relegating that period to just another meaningless episode in history that deserves forgetting either because they can’t remember how things were during that period, or just don’t know enough about it.

Now a senator, Maria Imelda Josefa “Imee” Marcos has urged those who are challenging the absurdity that the Marcos kleptocracy was a golden period in recent Philippine history and what’s more was not a dictatorship, to “move on.” She has even claimed that she and her siblings were not complicit in the many crimes that took place during that dark period (1972–1986) because they were children then.

Like her supposed graduation from Princeton University and the University of the Philippines College of Law, that claim is bogus. Both in their teens when their father declared martial law in 1972, Imee and her brother were already adults by the latter part of their father’s dictatorship. She was born in 1955, and was 31 years old in 1986, while her brother Ferdinand “Bongbong” Marcos, Jr., who was born in 1957, was 29. Imee Marcos was in fact old enough to be named by her father chair of the regime’s version of the youth group Kabataang Makabayan, the Kabataang Barangay (KB). She was even implicated in the death of a student who, after objecting to her being KB chair, was later found tortured and murdered.

For his part, her brother Ferdinand “Bongbong” Marcos, Jr., has refused to acknowledge that the arbitrary detention, the enforced disappearances, the killings, the torture and other human rights violations that characterized their father’s rule were matters of State policy. Instead he claims they were unintended, and in effect only the doing of aberrant members of the military. He has refused to apologize for those abuses on the basis of that argument.

And yet there is no question that the arrest and detention, torture and killing of suspected rebels and “subversives” as well as regime critics were the inevitable consequences of the policy decision to place the country under martial law. Its mastermind imposed it to stay in power beyond 1973 when his second four-year term would have ended, and to enable his military accomplices to arrest anyone without a warrant and detain them without charges for indefinite periods.

One of the characteristics of martial rule was in fact how carefully Marcos Sr. weighed every option, and planned and prepared for every contingency, including the possibility of replicating the “Indonesian model” that massacred over a million members of the communist and nationalist parties of that country in 1965. Two years before he issued Presidential Proclamation 1081, Marcos Sr. was already instructing Philippine embassies in other countries where dictatorships were in place to conduct studies on how they were being implemented and sustained.

He understood only too well how critical military support was, and turned the generals into his Praetorian guard by rewarding them with pelf and power. Already ideologized by its use by the political elite as an internal pacification force rather than as a defender of the country’s sovereignty and territorial integrity, the military under Marcos became a power broker whose support has to this day been crucial to the survival of every Philippine administration.

The Marcos siblings’ sustained campaign to sanitize their father’s vicious regime is all part of the effort not only to rehabilitate themselves in the public eye but also to pave the way for their recapture of national political power, the possibilities for which have never been as pronounced than during the current term of their ally Rodrigo Duterte.

This is part of the context in which the Supreme Court, sitting as the Presidential Electoral Tribunal (PET), decided, with only two dissenting votes, to continue hearing Marcos Jr.’s protest against Vice-President Maria Leonor “Leni” Robredo instead of dismissing it when the recount of the votes in three provinces added to the latter’s votes. If it had been otherwise — if the Robredo votes had diminished in the recount — it would have validated Marcos’ claim that he has been “robbed of the Vice-Presidency.”

It stands to reason to assume that the recount results invalidate Marcos Jr.’s claim that he was cheated in the 2016 elections. Hence the question why the PET decided as it did. Either the justices wanted to give Marcos every opportunity to make his case so he won’t have any reason to claim that they were partial to Robredo, or — and this is more likely — they don’t want to displease President Rodrigo Duterte, who has several times expressed his disdain for Robredo and his preference for Marcos as his successor should he resign the presidency.

If the second is indeed the case, it would not only raise serious doubts about the independence of the Supreme Court. Even more significantly would it also mean that the PET decision is supportive of the Marcos family agenda of returning to Malacañang with one of their own as President.

The delay in the PET decision is saying that a ruling in favor of Marcos Jr. is still possible, in which case once he is declared Vice-President, the ailing Mr. Duterte can resign from his post. He could do so with the assurance that someone would be in power who is unlikely to hold him, his family, and his regime to account for the crimes and corruption they have been accused of. There are other Duterte allies who are interested in the presidency, among them Manny Pacquiao, Cynthia Villar, and Sara Duterte. But if already Vice-President, and with his family’s billions and political assets, Marcos Jr. could prevail over them all in 2022.

What then should be of concern for the long suffering people of this sad country is what the presidency of another Marcos that can last for at least eight years will be like.

Those eight years include Mr. Duterte’s last two years, plus six more from 2022 to 2028. Once de facto President, and with command over government funds, facilities and personnel, Marcos Jr. can handily win the 2022 elections.

Because it isn’t in his interest to institute the reforms needed to address the roots of conflict, that could occur in the context of continuing social unrest and armed rebellion. In response, Marcos Jr. could replicate his father’s 1972 “solution,” although without necessarily declaring martial law, but by simply implementing it in the form of mass arrests and the curtailment of the Bill of Rights including the right to free expression and press freedom. From there he could, like his father, make himself President for life.

When running for the 2016 elections, Marcos Jr. was in fact talking as if he were campaigning for the country’s highest post. He was also promising to lead a “revolution” — which his father also claimed to be leading on the eve of his declaration of martial law in 1972.

What’s in store for this country over the next decade or so could be martial law and dictatorship reprised — and by another Marcos. Should his electoral protest be dismissed, those other, equally self-aggrandizing aspirants for the Presidency could still outmaneuver him in 2022. But that’s not exactly something to look forward to either.

 

Luis V. Teodoro is on Facebook and Twitter (@luisteodoro).

www.luisteodoro.com

Ghosts

Perhaps ghosts do exist. Perhaps the question we should really be asking is: what exists?

Alejandro Amenábar’s The Others exemplifies this point: [spoiler alert] contrary to what the movie’s lead character (played by Nicole Kidman) thought, the “ghosts” infesting her house are actually the living. The dead and the haunting are rather her and her children.

There are, of course, the legendary stories: The Brown Lady of Raynham Hall, the harrowing Bell Witch of Tennessee, the possessed Raggedy Ann doll that The Conjuring series re-introduced to a younger audience.

Historical ghosts abound: Lady Catherine Howard, whose ghost is said to be seen and heard screaming along the halls of Hampton Court, still pleading to be spared of the execution ordered by her husband King Henry VIII. In the Philippines, a school hospital in Manila and Malacañang Palace, as well as the CCP, are said to be haunted.

Of course, there’s Balete Drive (although how the White Lady there fares in today’s horrendous traffic adds to the mystery).

Yet these long-time stories still pose the unanswered question: what exactly are ghosts?

One thing interesting to consider is that if we take a hypothetical person “Juan,” with X being his body and (assuming it exists) his soul is Y this makes X+Y= Z (Juan being Z). If at death X decomposes, leaving only presumably Y, then wouldn’t it be quite illogical to presuppose that Y=Z?

Thus, if people say they see or even talk to ghosts, presumably now existing merely as Y, then how come Y is seemingly identical (not only in appearance but personality and memory) to Z?

Furthermore, if the ghost-hunting shows are to be believed, ghostly activity can be captured on film, sounds recorded (as disembodied voices or as electronic voice phenomena), and their presences known through electromagnetic frequencies (EMF).

Which doesn’t make sense.

Because if ghosts are spiritual entities, how can earthly devices capture their characteristics? It presupposes there’s something solid or material about ghosts, generating sound, can be captured by our eyes, felt by skin, smelled (e.g., candles or perfume), and even tasted (e.g., ectoplasm). These ghostly stimuli are such that they are capturable by our senses, which are then transferred to our brain for processing.

Which leads to further questions: if they are solid or gas, they exist materially, which presupposes an origin or cause, what mode did they separate from our bodies at death, and how come such material can not be duplicated in a controlled environment (i.e., laboratory) for scientific testing?

Incidentally, there’s the famous Duncan MacDougall study, published in 1907, which concluded that the soul likely weighs 21 grams. Its research has been criticized for being highly flawed and selective in reporting.

Which leads to this: perhaps ghosts do not exist as matter capturable by our senses. Instead of stimuli being transmitted to our brain, nothing is being transmitted at all.

The point: ghosts are all in our mind.

What we think we see, touch, feel, smell, or taste do not exist at all — rather they are just cooked up by our brain. When we see a ghost, for example, we do not actually see anything with our eyes: it is just our brain telling us (lying to us) that we’re seeing something.

Which leads us to memory, usually defined as a process in our brain that possesses, stores, and retrieves information or experiences. Straightforward enough but even now science finds itself baffled by it.

In a wonderful passage in the introduction to The Name of the Rose, Umberto Eco tells of “magic moments, involving great physical fatigue and intense motor excitement, that produce visions of people known in the past (‘en me retraçant ces détails, j’en suis à me demander s’ils sont réels, ou bien si je les ai rêvés’). As I learned later from the delightful little book of the Abbé de Bucquoy, there are also visions of books as yet unwritten.”

And apparently, these are not the mere musings of a creative genius. Medical writer Faith Brynie, Ph.D., tells us it is indeed “possible to remember something that never really happened.”

In one experiment, “researchers showed volunteers images and asked them to imagine other images at the same time. Later, many of the volunteers recalled the imagined images as real.”

Even St. Augustine devoted a fair amount of his writing to exploring the overlapping concepts of memory, self, and the mind, even going so far as to consider memory as identical to the soul.

Another intriguing possibility: “time slips.” Here, what is seen is real. It’s just that what was seen is of a different period. Hence, glimpses of otherworldly people, buildings, places, or events are actually glitches in time. This, of course, leads to questions of who or what did the time travel (i.e., the observer or the observed) and how?

Anyway, whatever ghosts may be, as we celebrate All Soul’s Day tomorrow (November 2), may whatever haunt you be beautiful, happy, and good.

 

Jemy Gatdula is a Senior Fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence.

https://www.facebook.com/jigatdula/

Twitter @jemygatdula

VP Leni only needs a day

It is the blame game at its finest, or rather, at its worst. The administration admits to the colossal failure of the war on drugs after three years of non-stop killings. To distract the public and prove its incompetence, the Office of the Vice-President is challenged to solve the drug problem.

It is a trap because it an immense, hydra-like problem and the Office of the Vice-President (OVP) exercises no power or control over the drug apparatus of the government. There is even a deadline imposed — six months to undo three years of bad policy and bad people at the cost of thousands dead and lives destroyed.

We say to VP Leni, call the bluff and ask for a day with the necessary authority. Twenty-four hours is enough to lead by integrity and moral courage, common sense, and genuine concern for the innocent.

At sunrise of the one day, an Executive Order can be issued immediately transferring the Internal Affairs Service (IAS) of the discredited Philippine National Police (PNP) to its mother agency, the Department of Interior and Local Government (DILG).

This instantly resolves the inherent conflict of interest that paralyzes the IAS. Picture the head of the IAS summoning higher-ranked generals for malfeasance and misfeasance. It is only possible if it has the support of the DILG and of course the chief enforcer of the law of the land, the President, or in this case, the Vice-President for one day.

Witness the Albayalde incident, all this time the ninja cops were continuing to report to duty as cops with the cases against them frozen. Only a change of top leadership resulted in the swift resolution of the cases against them.

Then the Vice-President directs the DILG to do a case inventory of all administrative cases for resolution within 2019 consistent with the mandated periods. No delays, no influence peddling. Only independent judgment backed up by strong evidence following due process can begin the cleansing process of the ranks of the police.

Midway through the day, the DILG issues a circular prescribing the consequences for policemen who are relieved or put on floating status because of bad performance. Taking out station commanders is only meaningful if there is accountability. Merely rotating and reappointing them elsewhere makes the problem worse. They ought to be tagged, tracked, and monitored by the IAS.

The OVP next directs the Dangerous Drugs Board (DDB) to revoke all deputation of other law enforcement agencies. The Philippine Drug Enforcement Agency (PDEA) is the only authorized office to enforce drug laws in the country. However, due to limited resources, it taps the police but with limited oversight or hardly any operational control. This is a continuing problem of the PDEA since its creation in 2002.

The DDB mandates new PNP units that are cleared by the IAS to report only to the PDEA. No other police units can operate on drugs. The current situation is every police unit operating for itself.

Toward the end of the working day, the OVP directs the NBI to investigate past and present Bureau of Corrections directors for any involvement in the drug trade. Three years to date, there is no new prosecution of any drug lord; there is only recycling of tainted officials that shout impunity.

Simultaneously, the Bureau of Corrections directs the tracking of convicted drug lords if they are still in the New Bilibid, in BGC, or elsewhere in the metropolis and moves them to the Davao Penal Colony, the only city in the Philippines that is free of the drug menace. Time and again, the drug business in our prisons makes the headlines for its brazenness — convicted to deal more drugs within a protected enclave in Muntinlupa.

As the sun sets, the OVP certifies as urgent the bill to unify the broken and fragmented prisons into a single correctional system and pushes for the passage of the new drugs law of 2020 that considers substance abuse as a public health issue and focuses enforcement against criminal syndicates and organized crime and not the raids on petty pushers and the extortion of users.

All these in a day’s work that exemplifies integrity and moral courage to do the right thing and to enforce the law without fear or favor, common sense to correct organizational dysfunctions and revise laws that are inadequate or wrongly designed, and care and concern for the people by respecting life.

Now that the challenge is on, who is man enough to do it? The bigger challenge is if the Filipino sees leaders setting the example, reads clear laws and policies, and hears of sincerity of efforts, the Filipino may ask for more than one day.

Peso strengthens to one-year high

THE PESO closed at its best level in more than a year on Thursday as the US Federal Reserve cut rates and following weak US economic data.

The local unit finished trading at P50.74 against the greenback on Thursday, appreciating by 14 centavos from the P50.885-a-dollar close on Wednesday.

Week-on-week, the peso gained 50 centavos from its P51.24 finish on Oct. 24.

The peso opened the session at P50.88 versus the dollar, which was already its weakest point for the day. Its intraday best was at P50.715 versus the greenback.

Dollars traded on Thursday grew to $1.16 billion from $1.049 billion on Wednesday.

“The peso sharply appreciated after the Federal Reserve reduced US policy rates by 25 basis points for the third time this year, and following the release of weaker third quarter US GDP (gross domestic product) growth report,” a trader said in an email.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso’s close on Thursday is its strongest in more than a year.

“The peso again closed stronger versus the dollar, its strongest in more than 21 months (or since Jan. 19, 2018 when it closed at P50.72 after recent decline in the US dollar versus major global and Asian currencies in reaction to the Fed’s latest and widely expected 0.25 percentage point cut in its key short-term interest rates,” he said in a text message.

The US Federal Reserve on Wednesday cut interest rates for the third time this year to help sustain US growth despite a slowdown in other parts of the world, but signaled there would be no further reductions unless the economy takes a turn for the worse.

“We believe that monetary policy is in a good place,” Fed Chair Jerome Powell said in a news conference after the U.S. central bank announced its decision to cut its key overnight lending rate by a quarter of a percentage point to a target range of between 1.50% and 1.75%.

Meanwhile, US GDP expanded by 1.9% in the third quarter, slowing down from the 2% growth pace in the April to June period.

The third-quarter growth marked a further slowdown from the brisk 3.1% rate notched in the first three months of the year. The dollar fell against a basket of currencies, while US Treasury prices rose. Stocks on Wall Street were trading higher. — L.W.T. Noble with Reuters

PSEi slips below 8,000 as Fed cuts policy rates

THE MAIN INDEX quickly abandoned the 8,000 level at the end of this week’s trading as investors shy away from making bets ahead of the holidays and following the rate cut by the US Federal Reserve.

The Philippine Stock Exchange index (PSEi) gave up 42.94 points or 0.53% to retreat at 7,977.12 on Thursday. The broader all-shares index also lost 13.66 points or 0.28% to 4,787.45.

“Investors kept to cash for the long weekend and immediately after the Federal Reserve’s third rate cut of the year and comments from Chairman Jerome Powell that signaled it would be a while before the central bank hikes rates,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

The Federal Reserve on Wednesday cut interest rates for the third time this year to help sustain US growth despite a slowdown in other parts of the world, but signaled there would be no further reductions unless the economy takes a turn for the worse.

“We believe that monetary policy is in a good place,” Fed Chair Jerome Powell said in a news conference after the US central bank announced its decision to cut its key overnight lending rate by a quarter of a percentage point to a target range of between 1.50% and 1.75%.

“We took this step to help keep the economy strong in the face of global developments and to provide some insurance against ongoing risks,” he said. “We see the current stance of monetary policy as likely to remain appropriate as long as incoming information about the economy remains broadly consistent with our outlook.”

Wall Street rose on Wednesday, as the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite all rose 0.43%, 0.33% and 0.33%, respectively.

Meanwhile, most Southeast Asian stock markets rose on Thursday, with Singapore leading gains, after the US central bank delivered an expected quarter-point rate cut to support economic growth.

However, due to mounting geopolitical and trade tensions, the futures markets are already pricing in 25-50-basis-point cuts by mid 2020, and the Fed’s move is seen as “not quite so much a ‘hawkish cut’ as it may be a ‘dovish pause,’” Mizuho analysts said in a note.

Back home, almost all sectoral indices ended in red territory. Financials gave up 22.55 points or 1.16% to 1,918.40; property lost 34.93 points or 0.83% to 4,172.29; mining and oil shed 26.82 points or 0.29% to 9,216.52; services declined 2.92 points or 0.19% to 1,513.05; and industrials fell 2.79 points or 0.02% to 10,470.94.

The lone increasing index was holding firms, which added 1.32 points or 0.01% to 7,830.30.

Value turnover grew to P7.76 billion from P5.99 billion on Wednesday, with 1.10 billion issues changing hands. More shares declined than advanced, 100 against 78, while 61 names were flat.

Net foreign buying totaled P211.35 million on Thursday, thinning from the P619.53 million the previous day. — D.A. Valdez with Reuters

Second major quake in a week hits Mindanao

A MAGNITUDE 6.5 earthquake struck central Mindanao yesterday morning, just two days after a 6.6 tremor killed at least 8 people, the national disaster agency said.

At least one person died after the wall of a local government building collapsed in the town of Makilala, Cotabato province in southern Philippines, according to state-owned Radyo Pilipinas.

The Philippines lies in the so-called Pacific “Ring of Fire,” an arc of intense seismic activity around the Pacific Ocean where most of the world’s earthquakes strike.

A hotel in Kidapawan City, the capital of Cotabato, a mid-rise condominium in Davao City and several other structures elsewhere collapsed. Many of these buildings had sustained major cracks from Tuesday’s main earthquake and hundreds of aftershocks.

The Philippine Institute of Volcanology and Seismology has recorded 590 aftershocks as of 11 p.m. on Oct. 30, with the strongest at magnitude 6.1.

Thursday’s temblor was the third to hit the area since the magnitude 6.4 earthquake on Oct. 16. Its epicentre was located 33 kilometers northeast of Tulunan in Cotabato.

Kidapawan’s power substation operated by the National Grid Corp. of the Philippines was damaged, but Mindanao’s transmission backbone remained intact, the Energy department said in a statement.

The agency said it had once again activated a task force on energy resiliency. “Necessary technical adjustments and shifting of load to Tacurong substation will be undertaken to restore transmission services to affected customers,” it said.

Meanwhile, more supplies have arrived from Manila, including tents and kitchen kits for more than 2,000 families in various evacuation centers, said Cezario Joel Espejo, Social Welfare director for Region 12.

In Davao City, President Rodrigo R. Duterte’s hometown, one of the two buildings of Ecoland 4000 collapsed, hurting nine people.

The City Engineers’ Office had recommended the condemnation of the five-story building with 56 housing units, Davao City Mayor Sara Duterte-Carpio said at a briefing.

Unit owners were informed about the building’s unsafe status, but some renters opted to stay because they had nowhere else to go, the mayor said. The city’s legal office would look into possible charges, she said.

Mr. Duterte, who was in Davao when the quake struck, was safe, his spokesman Salvador S. Panelo told ABS-CBN News Channel.

The Labor department was ready to allocate funds for workers affected by the recent earthquakes in Mindanao, it said in a statement. — with reports from Maya M. Padillo, Gillian M. Cortez, Victor V. Saulon and Reuters

Realizations for UP after 2nd huge loss to Ateneo

By Michael Angelo S. Murillo
Senior Reporter

FOR the second time in University Athletic Association of the Philippines (UAAP) Season 82 the University of the Philippines (UP) was dealt a lopsided defeat by Katipunan rivals and defending champion Ateneo de Manila University, sending the Fighting Maroons to much realization.

Reengaged the Blue in the final game of the elimination round of the ongoing UAAP season on Wednesday, UP was looking to do well against Ateneo but instead saw a familiar refrain.

The Maroons competed early on in said game but just could not sustain it on their way to an 86-64 defeat.

It was the similar route that UP found itself taking in their 89-63 loss to Ateneo in the opening round back in September.

The win completed for the Eagles (14-0) a sweep of the eliminations that earned for them a direct entry into the finals while rendering the semifinals a step-ladder setting.

UP (9-5), despite the loss, still retained the second spot and has a twice-to-beat advantage in the step-ladder.

Following the game, Maroons coach Bo Perasol admitted that the Eagles are the proverbial “glass ceiling” they are having troubles overcoming at the moment and that they have to dig very deep if they are to finally break through against the blue and white.

“There are so many realizations, and Ateneo was just much better against us,” said the UP coach in a postmatch session with members of media on Wednesday at the Mall of Asia Arena.

“We saw our immense weaknesses and again, it’s important we have to feel the reality. Ateneo is a cut above the rest and we cannot compare ourselves with them as of right now,” he added.

UP just could not find its groove form the second quarter onwards when Ateneo started to crank things up on both ends last time around.

The Maroons shot a dismal 33.3% from the field, even had a worse clip from beyond the arc at 26.3%.

They were outrebounded, 46-38, out-assisted, 22-12, and had more turnovers, 21-18.

“There was no way, if we played that way, that we could’ve beaten Ateneo. It’s not a fitting ending on how we would’ve wanted our elimination round but Ateneo really outplayed us,” Mr. Perasol candidly said.

But the UP coach was not completely down on his team, believing that every team in the UAAP has had difficulty against the defending champs this season.

“It’s not just UP who plays bad against Ateneo. Everybody plays bad against Ateneo, period. In the 14 games of Ateneo, I’d say 80%, they just outplayed everybody. If you want to beat them, you should not only be prepared, but you have to have some luck as well,” Mr. Perasol said.

He went on to say that all is not lost for them this season and that they have to get back to the drawing board and be ready in the step-ladder.

“[We have to try] to erase the bitter loss to Ateneo right away because we need to focus on the positives that we had. We cannot discount the fact that we are 9-5. I think we have done pretty well to be no. 2, but it’s also important that we can’t stay there,” the UP coach said.

“We have to move forward. We need to anticipate what’s ahead of us and prepare hard for that next game,” Mr. Perasol added.

The UAAP step-ladder semifinals begin on Nov. 6 with third-seeded Far Eastern University Tamaraws taking on the number four team University of Santo Tomas Growling Tigers.

Nats win first World Series title

HOUSTON — Howie Kendrick hit an opposite-field, two-run home run in the seventh inning, and the Washington Nationals completed an upset of the Houston Astros, claiming the decisive Game 7 with a 6-2 victory on Wednesday to secure the franchise’s first championship.

It’s the city of Washington’s second World Series title, after the Senators won it all in 1924. The Montreal Expos, who debuted in 1969, moved to Washington and became the Nationals starting in 2005.

Kendrick, whose grand slam in the 10th inning of the National League Division Series felled the 106-win Los Angeles Dodgers, again struck the decisive blow for the Nationals, who became the first team to win four road games in the Fall Classic. Kendrick slapped an 0-1 cutter from Astros right-hander Will Harris (0-1) off the right-field foul pole to erase a 2-1 deficit.

Left-hander Patrick Corbin (1-1) made that lead stand by completing a three-inning stint of scoreless relief. He replaced starter Max Scherzer to open the sixth and induced an inning-ending double play from Jose Altuve to keep the deficit at 2-0.

Corbin stranded Yuli Gurriel in the seventh after Washington pulled ahead and set the Astros down in order in the eighth before yielding the mound to Daniel Hudson. Corbin allowed two hits and fanned three.

Juan Soto stroked an RBI single in the eighth to make it 4-2. Washington added two runs of insurance in the ninth, ensuring victories for the road team in all seven games of the series, a first in any major US sport. The Nationals faced won five elimination games en route to the title.

“We stuck together. I know that, when we had nothing else to lose,” Houston Native and Nationals third baseman Anthony Rendon said. afterward. “When people had written us off, we were facing elimination games that people thought we shouldn’t have been there in the first place. So we just kept on fighting and happened to come out on top.”

Astros right-hander Zack Greinke pitched exceptionally before departing following his one-out walk to Soto in the seventh inning. Greinke faced the minimum through four innings and had just 59 pitches on his ledger through five scoreless frames. He also initiated a double play in the second inning and recorded four additional assists.

But Rendon started the comeback with his one-out homer off Greinke. Kendrick landed the staggering blow two batters later.

Greinke was charged with two runs on two hits and two walks with three strikeouts.

As was the case for most of their losses the Astros were done in by failures with runners in scoring position. Houston struck first against Scherzer when Gurriel homered leading off the second inning. From that point, the Astros went hitless in six plate appearances with runners in scoring position before Carlos Correa lined a two-out, two-strike single past Rendon to score Gurriel in the fifth.

The Astros finished one-for-eight with runners in scoring position and stranded 10 baserunners. They went four-for-29 with runners in scoring position at home in the World Series.

Scherzer, who was scratched from an expected Game 5 start due to neck and back spasms, allowed two runs on seven hits and four walks in five innings, striking out three.

WASHINGTON CELEBRATES FIRST WORLD SERIES TITLE
Political divisions were swept to one side as Washington baseball fans erupted in cheers at almost midnight on Wednesday to celebrate the city’s first World Series title since 1924 after the Nationals defeated the Houston Astros 6-2.

Despite wet weather, thousands of fans celebrated after the Nationals came from behind in Houston to win Game 7 of Major League Baseball’s best-of-seven championship series.

Hardy fans braved a watch party at the Nationals’ stadium on the Washington waterfront.

The city’s last World Series victory came 95 years ago, when the Washington Senators defeated the New York Giants in seven games.

The Nationals’ run to the World Series title united fans from across the ideological spectrum even as Washington is embroiled in a growing impeachment inquiry into Republican President Donald Trump led by Democrats in Congress. [

Trump was booed by Nationals fans and regaled with chants of “lock him up” when he attended the fifth game of the series on Sunday in Washington.

The Nationals have played in Washington since 2005 when the franchise, formerly known as the Montreal Expos, moved from Canada. — Reuters

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