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Germany cites concerns over PHL’s compliance with GSP+ terms

THE German government said Thursday that it has concerns about the Philippines’ compliance with the terms of its continued participation in a European Union (EU) preferential trade arrangement.

“Concerns are not a bad thing in itself… It has been known, we have never been unclear about that we do have worries about the state of certain issues going on in this country, but this is to say not that this is the only thing we are focusing on. It’s among many things that we talk regularly about with Filipino government representatives,” Roland Schissau, the German Embassy’s Charge d’Affaires told reporters at a briefing Thursday for the Mabuhay Germany business event this year.

He declined to elaborate, adding that discussions to resolve the issues are ongoing in their “dense and good-spirited conversations with the government.”

Under the EU’s Generalized Scheme of Preferences plus (GSP+), 6,274 Philippine products enjoy zero-tariff entry to the EU on the condition that the government signs on to 27 core international conventions that cover human and labor rights, environmental protection and good governance, among others.

The EU’s 2018 GSP assessment report, which monitored 2016 and 2017 compliance, noted progress in the Philippines’ enforcement of international norms for gender equality, trafficking in persons, labor rights, health, education, social-economic rights, the fight against corruption and protection of the environment.

However, extrajudicial killings arising from the government’s war on illegal drugs was flagged “a serious concern,” as well as the proposals to reintroduce the death penalty and the lower the age of criminal responsibility.

Ceferino S. Rodolfo, Undersecretary for the Trade department’s Industry Development and Trade Promotion Group, has said that previous concerns were raised again at the third EU-GSP+ Monitoring Mission in late 2018 but expressed confidence that the country will receive a positive assessment overall.

The German embassy’s Mr. Schissau also touted the benefits of an integrated market under a free trade agreement (FTA) between the EU and the Association of Southeast Asian Nations (ASEAN), although he said such a deal may take a while with both sides not moving quickly to further trade talks.

“The European Union has one big advantage for us which is that we have a fully harmonized market for 28 member countries. The ASEAN economic community though in place already a few years is not yet there. I think it has harmonized only around 90%. So to gain the best advantage for all involved would, in our opinion, would be having an EU-ASEAN free trade agreement,” Mr. Schissau said.

“These things do take time with decision making a bit slow on both sides,” he added.

Negotiations for the region-to-region FTA were launched in 2007 but paused in 2009 when EU members agreed to deal with individual ASEAN countries bilaterally.

The EU concluded its first FTA with an ASEAN country, selecting Singapore, and a deal is set to be in force soon. Vietnam is expected to follow with a trade and investment agreement now under the EU Council’s review.

The European Commission (EC), in its March 2019 schedule of trade negotiations, set a date with Indonesia while noting the need for further talks with Malaysia, Thailand and Myanmar.

As for the Philippines, the EC had said it is focused on the government’s implementation of commitments in relation to the GSP+.

The next GSP monitoring report is due for release early next year. — Janina C. Lim

TRAIN’s hike in disposable income felt by retail sector, restaurants — DoF

TAXPAYERS saved about P111.7 billion in 2018 after the reduction in personal income due to the implementation of the tax reform law, the Department of Finance (DoF) said Thursday.

“The significant growth in sales reported by retail establishments and restaurants point to the fact that people now have more money to spend as a result of the hefty PIT (personal income tax) cuts under TRAIN, which is now benefiting 99% of our taxpayers,” Finance Assistant Secretary Antonio Joselito G. Lambino II said in a statement.

The Tax Reform for Acceleration and Inclusion (TRAIN) bill was signed into law by President Rodrigo R. Duterte in December 2017. TRAIN is the first package of the Comprehensive Tax Reform Program (CTRP).

TRAIN reduced the personal income tax of individuals earning gross annual income of P250,000 and below to zero, while those with earning above that threshold are subject to graduated tax rates of 20%-35% effective 2018, and 15% to 35% effective 2023, depending on income bracket.

Mr. Lambino noted that sales of convenience, grocery stores, restaurants and even real estate developers increased as the TRAIN Law helped increase consumer spending.

The DoF’s Strategy, Economics and Results Group (SERG) reported that revenues last year reached P68.4 billion, higher by 8.1% than the full-year target of P63.3 billion.

The largest gains in government revenue in 2018, according to the SERG, were in tobacco and auto excise taxes and documentary stamp tax collections.

The DoF earlier estimated that TRAIN implementation resulted in a combined P12 billion worth of additional income per month for individual taxpayers, with most of them compensation earners.

The Bureau of Internal Revenue (BIR), meanwhile, said last month that it is expecting lower income tax collections generated during the April 15 tax deadline due to the lower rate for PIT dictated by the TRAIN Law.

“Compared with 2018 collection, we are expecting that maybe it might be lower but we are hoping we still exceed the actual April 2018 collection because kahit bumaba ang personal income tax ng individual, mas dumami naman ang filers because of TRAIN and mas mababa ang income tax rate (because even if personal income tax decreased for individuals, there will be more filers because of TRAIN and also the income tax rate became lower),” BIR Deputy Commissioner Marissa O. Cabreros has said.

Despite possible decline in tax collections, the BIR still expects higher collections over the full year, with the expected increase in the double digits as taxpayers avail of an amnesty program. In 2018, during the first year of TRAIN implementation, it collected P1.962 trillion. — Reicelene Joy N. Ignacio

Mindanao peak power demand hits record on May 8

PEAK POWER demand in Mindanao hit a record 2,013 megawatts on May 8, exceeding the 1,853 MW recorded on Dec. 13, the Mindanao Power Monitoring Committee (MPMC) reported.

The Mindanao Development Authority (MinDA) also projected that 3,500 MW of new capacity is needed between 2021 and 2030 to support the region’s infrastructure and industry development.

“With the Mindanao economy growing solid at 7.1 % in 2018, primarily driven by our services sector, we can also expect power demand to head for an uptick,” MinDA Assistant Secretary and MPMC technical working group head Romeo M. Montenegro was quoted as saying in a statement Thursday.

Despite increasing demand, MinDA said the power supply remains at comfortable levels with an average of 400-600 MW excess supply.

Peak demand was reached ahead of the midterm election on May 13. On that day, power demand is estimated at around 1,700-1,800 MW, with the expected dependable supply of 2,200-2,500MW.

MinDA has assured there is enough power supply with the Lake Lanao scheduled to discharge water for impounding to the downstream reservoirs.

Mr. Montenegro said sustained economic growth in Mindanao is expected to lead to the development of up to 40 high-rise buildings within 3-5 years.

“At least 40 20-storey buildings are expected to rise in Davao City alone in the next three to five years, with each building requiring at least 5 MW of electricity. It is crucial that power supply moves along this growth trajectory in the long term, thus the need to bring in new and reliable capacities even before the developments get ahead of us,” Mr. Montenegro said.

He added: “The next big challenge is to ensure a balanced mix of energy sources that will provide these new capacities, so we can continue to provide clean, reliable, and affordable power for the consumers.” — Charmaine A. Tadalan

Trade dep’t ‘on track’ to hit medium-term export target

THE Department of Trade and Industry (DTI) said it remains confident of hitting its medium-term export target amid ongoing efforts to address bottlenecks hindering growth.

“We remain confident that we are still on track in meeting our total export targets to a range of $122 billion to 130 billion by 2022. We expect a positive growth trajectory to set in the subsequent quarters,” Trade Secretary Ramon M. Lopez said in a statement Thursday. He was referring to targets contained in the 2018 to 2022 Export Development Plan drafted by the interagency Export Development Council (EDC) which the DTI chairs.

The EDC revised 2019 projections for both merchandise and services exports, which had an initial forecast of single-digit and double-digit growth, respectively, to “low single-digit growth” for both categories.

The Philippine Statistics Authority’s preliminary data show that merchandise exports declined 2.5% year on year in the first quarter.

Although Mr. Lopez noted that the global slowdown, partly triggered by the United States-China trade war, is to blame for the widening trade gap, he said major exporters “are hampered by lingering issues they encounter on costs and inefficiencies in transport and logistics.”

“This continues to slow down the turnaround time in the production and shipments of exporters,” Mr. Lopez said.

He also noted the lack of capacity to meet demand for certain products, citing the vulnerability of agricultural exports, particularly fresh and processed mangoes whose output was affected by the La Niña last year and El Niño this year.

Mr. Lopez also cited “the lingering issue of the policy concerning controlled and regulated chemicals, which hampers the turnaround time of our exporters from production to market.”

“As part of our action plan, we are prioritizing addressing the core issues above (i.e., supply, competitiveness, port operations/logistics, and infrastructure gaps with relevant government agencies consistent with the Philippine Export Development Plan,” Mr. Lopez said.

Among the priority sectors for the DTI are office equipment, consumer electronics, motor vehicle and motor vehicle parts, high-value coconut products, forest products, and wearables. In services the focus is on audiovisual/creative industries, health care information management systems, software development, and tourism-related services.

The DTI said it continues to pursue initiatives that will increase exports, including maximizing opportunities in the ASEAN and other countries as well as promoting the use of preferential trade arrangements with the US and European Union.

March exports totaled $5.876 billion, up from $5.222 billion in February but down from the $6.024 billion in March 2018.

The March performance extended the decline in exports to four months. — Janina C. Lim

DoTr expects to submit NAIA rehab proposal to NEDA by next week

THE DEPARTMENT of Transportation (DoTr) hopes to submit the proposal of the so-called “super consortium” to rehabilitate the Ninoy Aquino International Airport (NAIA) to the National Economic and Development Authority (NEDA) by next week.

Asked about the DoTr’s timeline for the project, Transportation Secretary Arthur P. Tugade told reporters Tuesday he is giving the department “hanggang [until] next week” to endorse it to NEDA.

Mr. Tugade said last week he wants the private proponent for the NAIA rehabilitation to be awarded the concession for the project within 90 days. To meet this timetable, he said the proposal has to reach NEDA level as soon as next week.

The DoTr is currently evaluating the consortium’s draft agreement for the proposed NAIA rehabilitation project, which the group submitted on April 30. Mr. Tugade noted the department no longer sees any issues with the submitted draft terms.

Wala naman kaming nakikitang (issue). Ewan ko lang kung pagdating sa NEDA meron sila. Kasi magkaiba ‘yung NEDA at DoTr. Sa amin, walang isusumite na issue [We don’t see any issue. I’m just not sure if NEDA will find any. There may be a different assessment for NEDA and for DoTr. We don’t intend to submit a proposal with outstanding issues],” he said when asked to discuss the consortium’s submitted draft agreement.

The super consortium, formed by seven of the country’s top conglomerates, was given original proponent status by the DoTr in September for its P102-billion proposal to rehabilitate and expand NAIA over a 15-year period. The project aims to increase the capacity of the gateway from the current 30.5 million passengers each year to 47 million in two years and to 65 million in four years.

After receiving original proponent status, the consortium must amend the concession agreement for the project to address any DoTr concerns, and the DoTr will then endorse the deal to NEDA for approval.

If it gains approval from NEDA, the proposal will undergo a Swiss challenge, with other companies invited to make a counter-proposal, which the consortium is entitled to match.

Only after hurdling the Swiss challenge can the consortium be awarded the concession for the project. The award is what Mr. Tugade wants done in 90 days.

Asked to comment, a spokesperson for the consortium, Jose Emmanuel P. Reverente, declined to comment other than to say the group “will comply with (Mr. Tugade’s) timeline.”

The members of the consortium are Aboitiz InfraCapital, Inc.; AC Infrastructure Holdings Corp.; Alliance Global Group, Inc.; Asia’s Emerging Dragon Corp.; Filinvest Development Corp.; JG Summit Holdings, Inc.; and Metro Pacific Investments Corp. — Denise A. Valdez

Power shortage as election issue

Until last week May 3, another yellow alert has been issued by the National Grid Corp. of the Philippines (NGCP) because of insufficient reserves due to the following: (a) forced outage due to earthquake of GN Power Mariveles (316 MW), (b) unplanned/forced outage of SEM Calaca U2 and Team’s Pagbilao U1 (582 MW), and (c) derated/reduced capacity of five power plants (736 MW). Total 1,634 MW unavailable, that’s big.

These yellow alerts and occasional red alerts (which require rotational blackouts) have been going on since around mid-March this year — and have become an election issue for some sectors. This week we are lucky with thick clouds daily and occasional rains, meaning power demand is low. Mid-terms election on Monday, we pray that the thick clouds will stay.

Numbers below will further illustrate how weak and unreliable the Philippines’ power sector is — which explains the recurring power shortages and, in the process, higher power prices. For instance, these three socialist economies have shockingly more power capacity per person than supposedly capitalist Philippines: Vietnam has 2x, Laos has 5x, and N. Korea has 6x (see table).

Installed generating capacity, 2016 est.,

Official DoE data show that the Philippines’ installed capacity was 21.42 GW in 2016, 22.73 GW in 2017, and 23.82 GW in 2018. Nonetheless I use the CIA numbers for comparison purpose.

Four recent stories in BusinessWorld would give more contexts to this situation and I quote portions of them.

1. Power panel passes amendments to EPIRA IRR (May 3):

“THE Joint Congressional Power Commission (JCPC) on Thursday approved amendments to the implementing rules and regulations (IRR) of the Electric Power Industry Reform Act Law (EPIRA) to facilitate the granting of benefits to host communities.”

2. Invitation still open for Chinese merchant power plant builders — Energy dep’t says (May 3):

“We asked both Japan and China to help us put up a merchant plant and this is part of an MoU that we successfully signed in China.”… Aside from the China-funded coal-fired power plants, the DoE has encouraged private sector investment in… liquefied natural gas (LNG).”

3. On credit ratings upgrade and power shortage risk (May 6, opinion piece by Romeo L. Bernardo):

“Chair Devanadera’s chart shows that there are 454 Power Supply Agreements Requiring Further Action, involving 150 power plants. How long does an evaluation take and how many technical people has the Energy Regulatory Commission assigned to evaluate? Answer: 90-180 days; 14 technical personnel.

The ERC can be more faithful to market based competition principles… by moving away from detailed cost based review of every PSA… a simple validation of adherence to Competitive Selection Process rules to ensure arms length competitive contracting would be a fairly quick and straightforward alternative approach.”

brownout power outage

4. ERC’s competitive selection rules expected in 30 days (May 7):

“…final rules on competitive selection process (CSP), a scheme that chooses the lowest-cost power for consumers… require the generation companies to shoulder the cost of unscheduled plant outages…. a template for a power supply agreement (PSA) … provision on replacement power.”

Story #1 is bordering on a risky proposal by some sectors to amend the EPIRA law of 2001. I say ‘risky’ because once EPIRA is amended, the probability of that law becoming worse — more state-control of power generation and supply vs better/market competition — becomes 75-25.

Story #2 is eliciting another anti-China communist government sentiment here. The communist bully that steals Philippines territory at the WPS/SCS is being invited by the Duterte government to build more dams, airports, telecoms, power plants, other sectors that are strategic for national security.

Opinion #3 offers good and practical proposals so that ERC should move away from a micro-managing central planner and further relax regulations, so that we should have more new and big power plants today, not three to five years from now.

Story #4 is good, CSP rule is long overdue and having a template for all PSAs is important. If power supply remains tight, the cost of replacement power will be high so ERC should further deregulate pricing by gencos. Having more new reliable power sources at WESM will remedy this.

We should stay the course of more market players and competition, less government regulations and over-bureaucratism of power supply approval and pricing.

 

Bienvenido S. Oplas, Jr. is the president of Minimal Government Thinkers

minimalgovernment@gmail.com

Trade protections under the Customs Modernization and Tariff Act

With news of possible escalation of trade hostilities between the US and China, it would be good to look at possible trade processes and remedies that can be resorted to by the Philippines in case the conflict creeps into our economy.

The Customs Modernization and Tariff Act (CMTA or RA 10863), enacted in 2016, not only sought to upgrade customs rules and procedures and smooth out kinks in the supply chain but also included measures to protect the Philippines or Philippine industries in case of trade discrimination or harmful imports.

There are the trade remedies, which Secs. 711, 712, and 713 provide for by referring to RA Nos. 8752, 8800, and 8751 (or for anti-dumping, safeguards, and countervailing, respectively).

Then there is Section 714, which authorizes, without prejudice to any Philippine commitment in any ratified international agreements or treaty, the President in case of discrimination by foreign countries to (if the public interest will be served thereby) specify and declare new or additional duties in an amount not exceeding one hundred percent (100%) ad valorem upon goods wholly or in part the growth or product of, or imported in a vessel of, any such foreign countries.

Thus, if the President finds that another country imposes, directly or indirectly, upon the disposition or transportation in transit or through reexportation from such country of any goods wholly or in part the growth or product of the Philippines, any unreasonable charge, exaction, regulation or limitation which is not equally enforced upon the like goods of every foreign country; or discriminates in fact against the commerce of the Philippines, directly or indirectly, by law or administrative regulation or practice, by or in respect to any customs, tonnage, or port duty, fee, charge, exaction, classification, regulation, condition, restriction or prohibition, in such manner as to place the commerce of the Philippines at a disadvantage compared with the commerce of any foreign country.

If at any time the President shall find it to be a fact that such foreign country or countries has not only discriminated against the commerce of the Philippines but, after the issuance of a proclamation protecting the Philippines, maintained or increased its said discrimination against the commerce of the Philippines, the President is hereby authorized, if deemed consistent with the interests of the Philippines and of public interest, to issue a further proclamation directing that such product of said country or countries or such goods imported in their vessels be excluded from importation into the Philippines.

port customs

The Tariff Commission has the duty to ascertain and at all times be informed whether discriminations are being done against the commerce of the Philippines, and if and when such discriminatory acts are disclosed, it shall be the duty of the TC to bring the matter to the attention of the President, and to recommend measures to address such discriminatory acts.

Aside from trade remedies, should foreign imports be coming in harmful volumes, there is also the “flexible clause” (e.g, Section 1608) which provides that in the interest of the general welfare and national security, and, subject to the limitations prescribed under the CMTA, the President, upon the recommendation of the NEDA, is hereby empowered to: increase, reduce, or remove existing rates of import duty including any necessary change in classification. The existing rates may be increased or decreased to any level, in one or several stages, but in no case shall the increased rate of import duty be higher than a maximum of one hundred percent (100%) ad valorem.

Under Sec. 1608, the President can also establish import quotas or ban imports of any commodity, as may be necessary; and impose an additional duty on all imports not exceeding ten percent (10%) ad valorem whenever necessary.

Notably, the powers stated under the flexibility clause are delegated to the President and exercisable only when Congress is not in session. As such, the said powers may be withdrawn or terminated by Congress through a joint resolution.

Finally, Section 1609 (Promotion of Foreign Trade) provides that, for the purpose of expanding foreign markets for Philippine products as a means of assisting in the economic development of the country, in overcoming domestic unemployment, in increasing the purchasing power of the Philippine peso, and in establishing and maintaining better relations between the Philippines and other countries, the President can enter into trade agreements with foreign governments or instrumentalities thereof; and modify import duties, including any necessary change in classification and other import restrictions as are needed to carry out or promote foreign trade.

It’s quite important to note that before any trade agreement is concluded with any foreign government or instrumentality thereof, reasonable public notice of the intention to negotiate an agreement with such government or instrumentality shall be given in order that interested persons may have an opportunity to present their views to the TC. The latter shall seek information and advice from other relevant government agencies.

 

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.

jemygatdula@yahoo.com

www.jemygatdula.blogspot.com

facebook.com/jemy.gatdula

Twitter: @jemygatdula

Lawyers and lawlessness

The Philippines is one of the world’s most lawless countries. But it’s not because it has too few laws or none at all, but because it has too many that are often interpreted in favor of the powerful so as to bring about the exact opposite of their intention, are selectively implemented, or hardly enforced at all.

Intended to democratize the oligarchy-dominated House of Representatives, the party-list law has become just another means for the dynasties to keep their decades-long monopoly on political power. The Constitution protects free expression and press freedom, but not only has the 87-year-old libel law sent journalists to prison, the 2012 Cybercrime Prevention Act has even increased the jail time penalty for online libel by one degree.

The Duterte regime proclaims to the rooftops its allegiance to the independence of the legislature and the judiciary. But it has undermined the system of checks and balances that the Constitution mandates as essential to democratic governance.

The very same regime opposed to the Constitutional provision limiting media ownership to Filipinos is using it against online news site Rappler. It is even expanding its meaning to include a ban on foreign funding for non-profit organizations, while its own media system bureaucrats receive direct funding and other forms of support from China, whose occupation of the Philippines’ Exclusive Economic Zone it has not even protested.

The same regime media system claims to be opposed to the spread of false information (“fake news”) while itself being its main purveyor, together with the trolls and old media hucksters in print and broadcasting paid out of public funds.

Mr. Duterte has urged Overseas Filipino Workers to return home on the promise of more employment opportunities. But his regime has thrown the country’s ports open to a horde of illegal Chinese workers it insists are better than Filipino workers and who’re royally compensated and housed.

While claiming to be concerned with human lives, it has caused the deaths of thousands in the course of its dubious “war” on drugs in which not only the presumption of innocence and due process have been savaged, but the fundamental right to life as well.

And then there’s the impunity that has enabled not only the killers of journalists to escape punishment but also for plunderers, corrupt officials, world class thieves, mass murderers and abusive State actors to get away with their crimes, and even to remain in power.

But it isn’t only the powerful who mock the very laws they either passed themselves or which they’re mandated to enforce. There’s the same lawlessness among ordinary folk that’s manifest not only in such transgressions as crossing a red light or smoking in enclosed spaces, but also in vote-buying during elections’ being part of the “normal” scheme of things. Thanks to a corrupt political class, together with intimidation and violence, vote buying has made a farce out of Philippine elections in which the right to freely choose to whom the citizenry can delegate its sovereign powers is fundamental.

But as lawless as this country may be, there are over 40,000 lawyers in the rolls of the Integrated Bar of the Philippines (IBP), or one lawyer per 2,500 people, assuming the population to be 100 million. That compares to 1,300,000 lawyers in the US, which makes the number of lawyers in the Philippines much less in relation to the population.

Some 1,800 new lawyers have just passed the 2018 bar examinations — a small number which has nevertheless once again raised the question of whether the country has too many lawyers. It’s not so much that question that must be asked but whether these new attorneys will be going into law — or were in fact moved to take it in college — only to advance their interests no matter what the cost to the public and Philippine society, or whether they will practice the profession in behalf of the imperative of defending the laws that Philippine experience and history have established as necessary in the making of a democratic and just society.

In the present context in which the threats to them are evident and becoming more and more pronounced, among those laws are those protective of press freedom, free expression, freedom of assembly and association, the right to due process and to be presumed innocent, and those others that are crucial to the completion of the democratization process. Beginning in the revolutionary period of Philippine history, that process has been interrupted, derailed and subverted by foreign invaders, colonialism, imperialism and domestic tyranny.

Corollary to that question is whether the new lawyers will oppose the making of laws restrictive of civil, political and human rights. The passage of such laws, together with the use of State violence, has always been among the weapons of choice of the ruling few. But they have since morphed into bigger and even more urgent threats during the current regime.

Even lawyers committed to the defense of the rights of the voiceless, marginalized and disempowered have themselves been threatened, harassed and even killed. Lawyers are among the few voices of dissent and truth the regime has accused of conspiring with the independent press to overthrow the Duterte regime, in an apparent attempt to manipulate public opinion against the National Union of People’s Lawyers (NUPL) as well as Rappler, Vera Files and the Philippine Center for Investigative Journalism (PCIJ).

The temptation to ignore these impending catastrophes to both the rule of law as well as what remains of the already limited democracy of the Philippines in favor of merely serving business and political interests for the sake of self-aggrandizement has always been strong in the professions.

Being a lawyer, a doctor, or, for that matter a journalist, opens many doors for self-advancement, to go through which subservience and obedience to the demands of the powerful is a fundamental requirement. That lesson has been driven into the heads of generations of college students by the Philippine experience with tyrannical rule. The martial law period demonstrated to Filipino professionals the dangers of political engagement, of patriotism, and of service to the people. It presented them with two starkly opposite options: to risk life, limb and fortune by using one’s skills for nation and country, or to advance and flourish by keeping silent, and using those skills solely for one’s own interests.

Doctors can abandon country and people either figuratively or literally by choosing lucrative practice in other countries over serving at home. Journalists can pretend to be ethical while being the captive of various interests. But no lawyer true to his or her calling should abide lawlessness and the rule of force, which are completely contrary to the ethical, professional and practical imperatives of the discipline of law. It helps explain why, despite the dangers, the IBP has remained committed to the rule of law and the defense of human rights, as have such groups as the NUPL. Hopefully the 1,800 new lawyers the Philippines now has will realize that the only alternative to defending the rule of law is to sit by and allow the destruction of everything that the profession they have chosen stands for. There are lawyers, specially in government, to whom neither country nor people matter, their sole commitment being to themselves and the power they serve. These are lawyers only in name, because they are themselves disciples of lawlessness and deceit.

 

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

www.luisteodoro.com

Comments on the side

By Tony Samson

INATTENTIVE participants at meetings ignore the speaker and quietly amuse themselves by offering running commentaries to seatmates and asking questions on the side. (Does he know what he’s talking about?) Side conversations between participants in a meeting or conference are distracting to those trying to listen to the speaker. Loudly whispered comments are not meant to be overheard by the one presenting: “note how he says “actually” before every phrase. I’ve counted 23 already.”

Side comments are annoying to a presenter. They are irrelevant and do not relate to the subject at hand. Calling attention to such inattentiveness (Can you please stop yapping there at the back?) only invites the rude chatterer to be even more pugnacious: Why? Is your presentation worth listening to?

Speaking out of turn is a habit quickly punished from childhood — stop butting in, can’t you see that the grown-ups are having a heated debate here? In school, chatty classmates are asked to do additional work when caught not paying attention to the teacher — write “I will pay attention” fifty times on the blackboard.

But side comments can be too enjoyable to ban socially. Is it related to freedom of expression? Digressions lessen tension and can introduce comic relief to distract would-be pugilists from mixing it up in the boardroom.

In literature, such irrelevancies as parenthetical remarks are revered.

The open and close parentheses are paired to provide an enclosure for a phrase or clarificatory note to support or divert from the main thought in a sentence. The etymology of “parenthesis” gives a clue to its function. In Greek, the original word pertains to “inserting.” Insertions are part of an intimate act as well as a way to introduce pork in the national budget.

In theater, side comments (or “asides”) allow a character to step forward and share his thoughts with the audience. A character expresses his feelings aloud, as the other actors on stage pretend not to hear his comments about them — look how they lie, these bastards. This theatrical convention is called a “stage whisper” to signal that it is intended only for the audience. A conniving Iago in Shakespeare’s Othello recites his evil intent to be taken as a thought balloon as far as the intended victim beside him is concerned.

The asymmetry of perception between the audience and the characters is a form of irony, with the villain smiling even as he cooks up his evil plan. This same invitation of the viewer as participant (the fourth wall) is employed by Alfred Hitchcock in his movies, like Psycho where the audience sees a killer about to plunge a knife on his heedless target seen through a translucent curtain having a shower, just before she is repeatedly stabbed to jarring syncopated music. The next scene is her pooling blood going down the drain.

The grapevine in a company also provides parenthetical remarks. Coffee servers who listen to conversations at the board while setting down cups subsequently give their narrative of what went on before somebody asked for a sachet of Stevia. None of these marginal comments and side remarks are reflected in the minutes of the meeting.

Isn’t small talk before a meeting also a form of side comment?

Just before the discussion on collectibles from a big client, there is chitchat about the stock market run-up and the subsequent correction and how much a known associate lost when the bottom fell. Other topics intrude and set the mood for the main agenda to follow — okay, can we start now?

Side comments distract from the topic at hand. Maybe, that is its true intent. The presenter, especially if he has no prepared slides, tends to digress from his assigned topic on why he did not meet his budget targets for the quarter. He makes irrelevant disclosures on management changes in other companies, then rambles along to what’s happening in the NBA playoffs, before going back to the subject at hand — where were we?

The penchant to change the topic with parenthetical remarks may be a diversionary tactic.

Still, the one presiding over the meeting tries to maintain order when there are too many side comments going on loudly and overwhelming the presentation itself (and now for slide 56) — Wait, can we just have one conversation please? Nobody asks which one should stop.

 

Tony Samson is Chairman and CEO, TOUCH xda

ar.samson@yahoo.com

Duterte declares May 13 a holiday

PRESIDENT Rodrigo R. Duterte on Thursday issued Proclamation 719 declaring Election Day, May 13, as a special non-working holiday nationwide.

“There is a need to declare Monday, 13 May 2019, a special (non-working) holiday to enable the people to properly exercise their right to vote,” the proclamation reads.

Executive Secretary Salvador C. Medialdea signed the proclamation for the President on Thursday, four days ahead of the May 13 midterm elections.

In his speech at a campaign rally in Bohol on Wednesday night, Mr. Duterte said he will ensure the orderly and peaceful conduct of elections during his term.

“I promised the people that kaning (this) election and every other election that will take place during my time, my watch na — you just follow rules. It’s when you start to break rules…that…it starts to magka-leche-leche (things get complicated). Eh, sundin mo lang ‘yung batas at walang problema (Just follow the law and there will be no problem),” he said.

The President also reminded the Armed Forces of the Philippines and the Philippine National Police to remain neutral.

“I made a commitment that ‘yung (the) mga sa Armed Forces at ang mga pulis (and the Police) must be neutral, pati ako (including me),” he said.

“Cabinet members are in the gray area [on] whether or not they can campaign for any particular candidate. But a popular notion is that…they can. But pinagbawalan ko sila kasi (But I prohibited them because) every time that you go out…, you use gasoline of the government….” Mr. Duterte said.

Also on Thursday, the Philippine National Police (PNP) announced a liquor ban starting 12:00 midnight of May 12 until midnight of May 13. — Arjay L. Balinbin and Vince Angelo C. Ferreras

Travel ban on suspect in Jee killing amended

By Vann Marlo M. Villegas, Reporter

A COURT in Angeles City has amended its hold-departure order on the alleged mastermind in the October 2016 kidnapping and murder of South Korean businessman Jee Ick-Joo, to now cover all airports and seaports in the country.

The two-page amended order of Judge Irin Zenaida S. Buan, of Angeles City Regional Trial Court (RTC) Branch 56, came following a motion by the Department of Justice (DoJ) early Thursday which noted that the May 8 travel ban on Police Lieutenant Colonel Rafael P. Dumlao III only stated the Ninoy Aquino International Airport.

“The Commissioner of the Bureau of Immigration is directed to prevent accused…from utilizing all airports and seaports of the Philippine islands to escape and flee to another country during the pendency of his cases,” the amended order read.

The prosecution said in its motion that “it is imperative that an Amended Hold Departure Order” be issued against Mr. Dumlao, now covering all Philippine international airports and seaports to prevent him from fleeing to another country while his cases are still pending.

“The nature and the urgency of the relief prayed for necessitate an urgent and ex parte amendment of the HDO precisely so as not to defeat the purpose of the said court processes lest a hearing set thereon present the accused with the opportunity to flee the Honorable Court’s jurisdiction through other ports of egress,” the motion read.

“This motion is not intended to infringe upon the right to travel of these accused but merely for the reasons stated above,” it added.

Mr. Dumlao, Police Chief Master Sergeant Ricky M. Sta. Isabel and Jerry A. Omlang are facing charges of kidnapping for ransom with homicide, kidnapping and serious illegal detention, and carjacking in connection with the kidnapping-murder of Mr. Jee.

On Oct. 18, 2016, Mr. Jee and his housekeeper Marisa Morquicho were abducted from his residence in Angeles City during an alleged anti-drug operation. Ms. Morquicho was released afterwards, but Mr. Jee was killed in the headquarters of the Philippine National Police and his cremated remains were reportedly flushed in a toilet.

The court on April 24 allowed Mr. Dumlao to post bail of P300,000 for each of the charges but denied the same to the other accused.

Stocks plunge as economic growth disappoints

By Arra B. Francia, Senior Reporter

SHARES plunged on Thursday after disappointing economic growth figures in the first quarter.

The benchmark Philippine Stock Exchange index (PSEi) fell 2.15% or 171.07 points to close at 7,755.65 yesterday, retreating sharply from its 7,900 finish in the previous session. The broader all-shares index slumped 1.41% or 69.13 points to 4,807.85.

“Market was down by more than 100 points today as 5.6% GDP (gross domestic product) was lower than estimate of 6% and impending tariff application on China which may further slowdown the global economy,” Diversified Securities Inc. Equity Trader Aniceto K. Pangan said in a text message on Thursday.

The Philippine Statistics Authority reported Thursday that the economy grew by 5.6% in the January to March period, much lower than the previous quarter’s 6.3% and the 6.5% seen in the first quarter of 2018. This is also lower than the 6.1% median estimate based on a BusinessWorld poll of 20 economists last week.

The result is also well below the government’s downward-revised target of 6-7% from 7-8% before, due to the delayed approval of the P3.7-trillion 2019 national budget.

The disappointing GDP result was further worsened by US President Donald J. Trump’s looming implementation of a tariff hike on $200 billion worth of Chinese goods this Friday.

Papa Securities Corp. Sales Associate Gabriel Jose F. Perez also attributed the PSEi’s decline to the lower-than-expected GDP results, adding that this may have pushed the Bangko Sentral ng Pilipinas (BSP) to cut key interest rates during its policy meeting yesterday afternoon.

“In the afternoon, the BSP did indeed cut policy rates by 25 bps (basis points), possibly to spur growth following the disappointing GDP figure,” Mr. Perez said in an e-mail.

The BSP reduced benchmark interest rates by 25 bps in a policy meeting after the market’s close, placing the key rate at 4.5%. The move came after five consecutive rate hikes totaling 175 bps in 2018 as inflation surged. Inflation has since slowed down for six straight months, bringing the year-to-date average at 3.6%.

Sectoral indices bled, with financials leading the decline at 2.81% or 49.74 points to 1,718.56. Holding firms plummeted 2.7% or 205.95 points to 7,414.27; mining and oil slumped 1.37% or 104 points to 7,466.08; property went down 1.34% or 56.01 points to 4,118.74; industrials gave up 1.29% or 150.61 points to 11,504.40, while services dipped 0.45% or 7.41 points to 1,606.32.

Turnover climbed to P9.15 billion after some 663.77 million issues switched hands, higher than the previous session’s P7.12 billion.

Net foreign selling swelled to P1.63 billion, more than four times the P360.93-million net outflow recorded on Wednesday.

Decliners outpaced advancers, 109 to 88, while 43 names were unchanged.