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The enabling strategy

In the playbook of democratic governance, government and its institutions perform the role of an enabler that provides the necessary legal and regulatory environment for the delivery of better and affordable public services.

While the political stiffness rendered by centralized services has made government programs inept amidst growing and dynamic consumer demands, the political tide of democratization in the past two decades compels governance to be more flexible and adaptable to the changing times.

In this age of privatization, national agencies are working hand-in-hand with the private sector to meet and satisfy consumer demands. Through the public-private partnership (PPP) scheme, the quality of public services continues to be retooled and upgraded to meet the expanding demands of the population.

Policy experts, infrastructure planners and even consumer groups support the expansion of PPP because public services could be delivered in a better, more efficient and impartial manner. The government benefits by harnessing the expertise, capital and nimbleness of qualified private enterprises in meeting objectives and addressing complex challenges. The performance of PPP and privatization models have been globally proven in the most successful economies and continue to be an essential element in accelerating growth in developing nations.

However, we may again be shooting ourselves in the foot.

Widely reported is the recent ruling announced by Supreme Court (SC) involving the Metropolitan Waterworks and Sewerage System (MWSS) and its two water concessionaires said to be “jointly and severally liable” for P1.8 billion in penalties plus tens of thousands for every day of delay in violation of Section 8 of the Philippine Clean Water Act.

This ruling will force Manila Water and Maynilad to finish their sewerage projects within five years instead of an earlier order (G.R. Nos. 171947-48), in February 2011, also by the high court, setting a 2037 deadline because of engineering, bureaucratic and practical realities on the ground that makes it impossible to implement a five year deadline unless the government does another Boracay shutdown in Metro-Manila. The concessionaires are already implementing this order with billions already invested in compliance with the specified timeline.

Independent consumer advocacy group, CitizenWatch in their recent statement describes the SC’s confusing order as, “another case of the country’s unstable policy environment.”

According to their estimates, last month’s SC decision will penalize consumers with water rates that will likely spike to around P16 per cubic meter! This will heavily burden millions of poor consumers and will not fit well with the government’s populist style of policy making.

To compute, the per cubic rate of Manila Water may hit around P59 from P39 while Maynilad’s will rise to P65 from P49. Bad news for everybody.

This unnecessary disruption will be red flagged by potential investors as yet another manifestation of the country’s volatile policy environment and another blow to our competitiveness, scaring away badly needed investments to create quality jobs for our people.

Just thinking of the long drawn out bureaucratic delays such as design and approval of plans, identifying affected properties, finding land for the sewerage treatment facilities, right of way cases, scores of permits, traffic rerouting schemes, construction delays from weather and force majeure, corruption, accidents, and unanticipated screw-ups that have frustrated all administrations, including President Duterte’s shows the wisdom of the Supreme Court’s 2011 decision to give a 2037 deadline to complete the waste water treatment facilities.

Part of the 2011 order is a host of directives to government agencies and LGUs critical on building the integrated sewerage system for the metropolis. These are a compendium of data, plans, and reports, all essential to design, construction and operations.

Directives and deadlines were given to the Metropolitan Manila Development Authority, Department of Environment and Natural Resources, Department of Health, Department of Budget and Management, Department of Education, Philippine National Police Maritime Group, Department of Agriculture, Department of the Interior and Local Government, MWSS, Local Water Utilities Administration, Philippine Ports Authority, and Philippine Coast Guard. Question is, were all these directives complied with? Has real estate been acquired or reserved for the sewerage treatment facilities? Billions of pesos of available resources and manpower will be stuck in costly standstills, like EDSA’s daily traffic jams, without all these prerequisites.

While there is no debate on the urgency of cleaning up our waterways, we must put this complex problem in the proper context where building state-of-the-art water treatment facilities is just a part of a societal crisis that will need the participation of every citizen and visitor of Mega-Manila. Come to think of it, MWSS was right in prioritizing the 24-hour supply of clean water to all its consumers. The water crisis of the 1990s was a distribution problem, while the dry faucets we experienced last January was a supply problem. Now we have the upgraded water system with private funded resources for expansion, but we don’t have enough fresh water. I believe this should be the top priority and the responsibility is with government, and, yes, the fastest and most efficient strategy is through Public Private Partnerships.

 

Prof. Victor Andres “Dindo” C. Manhit is President of Stratbase ADR Institute

The hazards of misreading the news

When I read the post in social media that Senator-boxer Manny Pacquiao had proposed crucifixion as a method of imposing the death penalty, my automatic response was to suggest, “Crucify him!”

I’m afraid I got carried away by someone else’s misinterpretation of Pacquiao’s proposal. As an aggressive proponent of the reimposition of the death penalty, Pacquiao appeared to have applied his superficial comprehension of scripture by referring to the crucifixion of Jesus Christ as a rationale for the death penalty.

The reference to Jesus’ death on the cross, although irrelevant to the rationale for reimposing the death penalty, was apparently used by Pacquiao while actually expressing a preference for death by firing squad.

Pacquiao could have used Jose Rizal as a point of reference but he seemed to think he understood the Bible better than Philippine history. However, this piece is not about my position on the death penalty (about which I do have some thoughts) but, rather, about the hazards of misreading or misunderstanding the news and the importance of getting your brain in gear before you click away on your laptop.

Typically, I immediately did extensive research on stupid laws passed by legislatures around the world, as well as dumb bills passed by dumbbells in the Philippine Congress. What came to mind was the bill purportedly filed by a congressman that would “outlaw typhoons.”

I was poised to rank Pacquiao’s reported Crucifixion Bill next to the Outlawing Typhoons Bill on the list of idiotic legislation filed by our lawmakers. Fortunately, I found a BusinessWorld column written by my friend Oscar Lagman pointing out that Catanduanes Congressman Francisco Perfecto did not actually propose “outlawing typhoons.” He, in fact, proposed government action to mitigate the destruction caused by typhoons (which regularly pummelled his province), such as funding for technical equipment and for disaster response training. That made sense.

Unfortunately, an illiterate or mischievous colleague in Congress branded Perfecto’s proposal as the “Bill to Outlaw Typhoons.”

Misinterpreting the news is almost as bad as purposely twisting and distorting it because the result still is the same as US President Donald Trump’s obsession and habitual practice, namely, dispensing “fake news.”

I’m reminded of an incident late 1988 when President Cory Aquino directed then Foreign Affairs Secretary Raul Manglapus to file a protest with the British government because of an alleged slur against Filipina womanhood in a new edition of the Oxford Dictionary.

The whole country was up in arms against both the Oxford University Press and the United Kingdom. Then Makati Mayor Jojo Binay hurled choice invectives at the British and, was reportedly prepared to put on his Rambotito armor to march against Her Majesty’s armed forces.

What triggered the furor was a resolution passed by the Philippine Chamber of Commerce and Industry (PCCI) and presented to President Aquino to the effect that the 1987 edition of the Oxford Dictionary had defined “Filipina” to mean “chamber maid” (in Tagalog, “alila,” or “utusan”). The PCCI resolution called on the Philippine government to “make the necessary action/representation to concerned authorities to delete this definition in the Oxford Dictionary.”

The PCCI’s poor grammar notwithstanding, President Aquino felt compelled to act in defense of her race and gender.

Not being as macho as Mayor Binay, my own attitude was “don’t get mad, get even.” I dashed off a column in which I proposed re-defining “Oxford” to mean a toilet or comfort room. Thus, instead of saying “I’m going to the CR,” one would say, “I’m going to the oxford.” And a little tyke could tell his mama, “I want to o-ox!”

I had other mischievous suggestions that would have made Her Royal Highness blush. But then, I realized that I had not read the allegedly malignant dictionary. As a journalist, I decided that it was necessary for me to check with the sources of the news.

Here’s my account, in a Nov. 16, 1988 column, of what transpired:

“I rang up the PCCI secretariat and asked. A very helpful young man confirmed that the resolution was part of an important document which contained the products of the PCCI’s labors in the just-concluded three-day 14th Philippine Business Conference.

“It was based on a complaint aired by someone who had heard about it from someone from the Department of Labor (DoLE).

“Had the PCCI secretariat seen the dictionary? No. What about the complainant? Neither. And President Aquino? Well, she had read the PCCI resolution but…

“Off I went to the book stores in Makati on the trail of this mysterious Oxford. A lot of Websters got in the way, but I finally found two paperbacks, a 1980 edition of the Oxford American Dictionary and what seemed to be a 1987 edition (“1987” didn’t actually appear but there was a reference to an earlier 1986 edition) of the Oxford Dictionary for Writers and Editors.

“The first had an entry that read: Fil-i-pi-no (fil-i-pee-noh) n. (pl. –nos), a native of the Philippine Islands.

“The second had what I thought I was looking for.

“After filing cabinet was the entry: Filipino/a, Sp. For Philippine Islands; -o(s), native(s) of the islands. And immediately following that was the entry: fille de chambre (Fr. F), Chamber-maid, lady’s maid, filles____; ____ joie, a prostitute.

“Aha! The culprit.

“Set in italics and in lower case, fille de chambre did seem, at first glance, to be a continuation of the definition of ‘Filipina,’ which was set in Roman, capitalized.”

Apparently, the DoLE representative had misread the Oxford Dictionary entries and had raised the red flag with the PCCI which, in turn, passed the resolution that was presented to President Aquino who, in turn, ordered Secretary Manglapus to file a protest with the British government. And no one had even seen the allegedly insulting Oxford Dictionary. It was a classic case of dumb and dumber.

I frantically called up Raul Locsin and asked him to pull out my original column and replace it with what I had uncovered. Mercifully, it was not too late to do so. In the substitute column, I concluded:

“And, oh yes… we should be thankful that fille de joie wasn’t what immediately followed the definition of Filipina. We could have declared war!”

Well, in the case of Pacquiao’s bill, I had obviously forgotten the lesson from that Oxford Dictionary flap. The media environment is even worse now, with social media allowing everyone to reinterpret the news. But that’s no excuse for misreading it and for shooting from the hip.

I still think that Pacquiao overdid it when he used the crucifixion of Jesus Christ to support his advocacy of the death penalty. But I take back what I suggested doing to him. I don’t think he should be crucified.

However, if you ask me, I wouldn’t mind seeing corrupt politicians and drug lords being lined up before a firing squad.

 

Greg B. Macabenta is an advertising and communications man shuttling between San Francisco and Manila and providing unique insights on issues from both perspectives.

gregmacabenta@hotmail.com

Before you leave

By Tony Samson

MANAGEMENT wants to understand why employees leave, especially when the resignation is voluntary and not forced. (Did you not like the cafeteria food?) The exit interview is designed to draw out the motives behind a departure not reflected in a dry, maybe angry, resignation letter, sometimes just one sentence long. It is supposed to guide management on gaps in its retention policy.

There is a need to discover extraneous reasons for resignations like migration plans to Vancouver or the call of a family business or health problems like ulcers and a high level of bad cholesterol (LDL). Joining a competitor rings different bells and is never disclosed anyway — I’ll just take a break and write my memoir. You’re in it as a villain.

Is there still need to interview targets of a redundancy program? After all, their fingers hanging precariously on the ledge were stomped quite vigorously to allow gravity to do its work — do you feel a light breeze on your hair?

There is still need for a chat to give even the reluctant emigrant a chance to get things off his chest. While not expected to sing the praises of a boss that is checking his soles for any skin bits, the resignee may still offer some useful observations regarding the shuttle service and the location of the lockers. A disgruntled person is expected to dwell on unflattering profiles of at least two layers of management above him — they send text messages even on weekends. There is no need to argue, only to nod and show that one has not fallen asleep.

The exit interview provides an opportunity to explain the reasons for a headcount reduction (including the interviewee’s), without having to resort to a power point presentation on industry disruptions. (Every company is switching to robots.)

Emphasis on the pain of the process softens the emotional blow. (We really wanted a place for a whiner like you in our organization but we already hit our quota.) The small investment in time, though unpleasant and tiring, can reduce, but not eliminate, the bad-mouthing of the company afterwards. (They convinced me on how worthless I was.)

It is important not to go overboard in assuring an outgoing executive of the company’s continuing affection. Phrases to avoid include the following: a.) Let us know what we can do for you; b.) Come back to us when we have an opening; c.) Our doors will always be open to you; and d.) Let’s have lunch sometime. While such expressions of goodwill engender a pleasant atmosphere, the implied assurance to provide help in the future may be taken literally. This will only lead to feelings of betrayal when the endearments are followed up by text messages — my next six months are fully booked for lunch.

It is fine to inquire what the resignee plans to do next. This conversation is not an eagerness to acquire information for future use. It’s just a way of filling up the designated time. Maybe, the interviewer is texting while the interviewee is giving his mental slide presentation on the prospects of mango growing in his province. The texter across him is nodding his head — I’m winding up here. Go ahead and take a shower.

The ideal occasion for an exit interview is when the settlement check is ready to be handed over, especially if this is generous. Whatever pain the unexpected firing has engendered is assuaged by money. (Don’t spend it all on a yacht.)

The tradition of offering consoling words for the record must have come from executions. (Any requests for a last meal?) As in corporate exit interviews, the feeling of being unfairly sentenced is expressed — I’m innocent of the crime. This last appeal is made even as the firing squads are adjusting their safety pins.

Last words are often dramatic and memorable. In Good Friday celebrations, long homilies are devoted to each of the seven phrases. Still, even in that traditional episode of redemption, the final phrase is plain and to-the-point “consumatum est,” it is finished.

Maybe corporate exits should emulate this verbal simplicity for moving on. Since the exit interview, so unpleasant for both sides, just needs to take place, it is best to strip it of melodrama. When asked for any last words, a nonchalant, though not disrespectful, statement will suffice — can I have the check now?

 

Tony Samson is Chairman and CEO, TOUCH xda.

ar.samson@yahoo.com

The hard part of ending inequality is paying for it

By Nir Kaissar

BURIED AMONG the storylines about global trade and political intrigue from the G7 summit last month is perhaps the most noteworthy one of all. Business for Inclusive Growth, or B4IG, a coalition of 34 multinational companies with more than 3 million employees and revenues topping $1 trillion, unveiled an initiative to tackle inequality with help from the Organization for Economic Cooperation and Development.

In its “pledge against inequalities,” the B4IG states what should be obvious to all — that “persistently high and rising inequality risks fracturing societies and undermining economic and business growth.” Its ambitious agenda calls for decent wages, expanding access to basic products and services, and supporting community development programs.

Sound familiar? Days earlier, the Business Roundtable, an association of CEOs of top American companies, abandoned its long-standing principle of putting shareholders first. Instead, it adopted a new “Statement on the Purpose of a Corporation” signed by 181 CEOs committing to “lead their companies for the benefit of all stakeholders,” including customers, employees, suppliers and communities.

Many of the ills cited by B4IG and the Business Roundtable can be traced to one culprit: Too many companies pay their workers less than a living wage, which means they must forgo basic necessities or fall deeper into debt. It’s nakedly unsustainable, and big corporations are beginning to realize that they can’t continue to neglect workers. Jamie Dimon, chairman of the Business Roundtable and CEO of JPMorgan Chase & Co., which is also a member of B4IG, acknowledged in the Business Roundtable’s press release that, “Major employers are investing in their workers and communities because they know it is the only way to be successful over the long term.”

It’s not just the long term companies are worried about. Some lawmakers are eager to tackle inequality and have already floated proposals to redistribute income to struggling workers, including higher corporate tax rates, a wealth tax, near-confiscatory marginal tax rates for high earners and taxing unrealized capital gains. The cost of those proposals to companies, executives, and shareholders is likely to be considerably higher than simply paying workers a decent wage. The Business Roundtable and B4IG are no doubt trying to get ahead of lawmakers’ efforts.

But high-minded initiatives like the ones proposed by the Business Roundtable and B4IG aren’t enough without money to pay for them, and I suspect companies won’t easily open their coffers, at least in the US. Executives and shareholders are drunk on years of fat profits — and the generous compensation packages and higher share prices that follow — and they won’t be keen to slow that success. The profit margin for the S&P 500 Index, or income as a percentage of revenue, swelled to 10.2% in 2018, the highest since 1990. The ratio of corporate profits as a percentage of GDP hit the highest on record in 2012, according to the US Bureau of Economic Analysis, and that ratio has remained elevated.

GOOD TIMES
And as profits go, so goes the payoff for the C-suite and shareholders. The CEO-to-worker pay ratio ballooned to 281 in 2017 from 195 in 2009, according to the Economic Policy Institute (EPI), and it projects a comparable ratio for 2018. Shareholders have been richly rewarded, too, as the US stock market has more than quadrupled in value since early 2009.

Another obstacle is that the amount of money required to adequately compensate workers is probably higher than acknowledged. Representative Katie Porter of California confronted Dimon with the gruesome math during a congressional hearing in April, demonstrating that an entry level position at JPMorgan in Irvine, California, that pays $16.50 an hour falls well short of a living wage for a single mother with one child — and that’s 10% more than the $15 minimum wage companies already balk at paying.

HARD KNOCKS
There are other signs that fixing wage inequality is no small task. For example, the median employee compensation at roughly half of the largest 1,000 US companies by market value falls short of a living wage for a family of four. The median household income in the US is roughly 25% less than the amount needed to cover living costs for a family of four in Midwestern cities such as Omaha, Kansas City, Milwaukee, or Cleveland, according to EPI estimates, never mind the more expensive locales on the coasts. And the income Gini index, which measures the degree of income inequality, is at a record high, according to the Census Bureau.

Big corporations seem to realize the extent of the problem and that workers can’t continue laboring for less than a living wage. The bigger question is whether executives and shareholders have the will to open their pocketbooks before the government makes them.

 

BLOOMBERG OPINION

Peso weakens further on concerns over Brexit, fresh US-China tariffs

THE PESO weakened further on Tuesday amid continued US-China trade war woes and fears of a no-deal Brexit. — BW FILE PHOTO

THE PESO extended its losing streak on Tuesday on continued US-China trade war jitters paired with Brexit issues looming anew amid election prospects.

The local unit ended at P52.31 against the greenback on Tuesday, weakening by 20.5 centavos from its P52.105-to-a-dollar close on Monday.

The peso opened Tuesday’s session weaker at P52.23 versus the dollar. Its weakest point for the day was at P52.365, while its best performance was at P52.19 against the greenback.

Dollars traded on Tuesday rose to $1.336 billion from the $1.234 billion that changed hands on Monday.

“We are seeing a risk-off tone. It could also be the Brexit or a combination of all these,” one trader said.

Lawmakers will decide on Tuesday whether to shunt Britain towards a snap election when they vote on the first stage of their plan to block Prime Minister Boris Johnson from pursuing a no-deal Brexit.

Mr. Johnson implicitly warned lawmakers on Monday that he would seek an election if they tied his hands on Brexit, ruling out ever countenancing a further delay to Britain’s departure from the European Union.

That sets up a Brexit showdown between Johnson, who has promised to take Britain out of the European Union on Oct. 31 with or without an agreement, and parliament, where a majority of lawmakers are opposed leaving without a deal.

The resurfacing of US-China trade war jitters also contributed to the peso’s decline, another trader said.

“The initial reaction of the market is for safety net, which includes the dollar,” the trader added.

The United States imposed 15% tariffs on a variety of Chinese goods and China began to impose new duties on a $75 billion target list. US President Donald Trump said both sides would still meet for talks later this month.

Most emerging Asian currencies weakened against a sturdy dollar on Tuesday as investors fretted over the outcome of Sino-US trade talks, while weak economic data sent the Indian rupee tumbling.

Late on Monday, Bloomberg News reported that Chinese and US officials are struggling to agree on a schedule for a round of trade negotiations that were expected this month.

The news sent the Chinese onshore yuan to 7.1825 against the dollar in early trade, its weakest since February, 2008.

Meanwhile, the dollar jumped 0.4% to 99.273 against a basket of six major currencies by 0532 GMT, stepping up pressure on Asian units.

For today, traders said the peso may continue to weaken amid upcoming data from the US, including reports on non-farm payrolls and the manufacturing index, among others.

The first trader sees the peso moving within the P52.20 to P52.50 band versus the dollar, while the second trader expects the local currency to end at around P52.10 to P52.40. — L.W.T. Noble with Reuters

PSE index sinks as US-China trade war heats up

By Arra B. Francia, Senior Reporter

THE MAIN INDEX fell on weak sentiment from US market futures due to the escalation in the US-China trade war.

The benchmark Philippine Stock Exchange index (PSEi) lost 1.43% or 113.82 points to close at 7,804.71 yesterday, extending the previous session’s decline. The broader all-shares index likewise plunged 1.18% or 56.98 points to 4,740.61.

“It was a quiet day for the index until a massive selldown at the close… The selldown could possibly be attributed to US futures being down by 1.0% at the moment as this signals how the US market will move tonight — effectivity of tariffs last Sept. 1 being the cause,” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail on Tuesday.

Futures on the Dow Jones Industrial Average went down 199 points or 0.84%, while S&P 500 futures also sank 0.7%. Investors may take their cues from the futures indices’ movements once US markets resume trading after the Labor Day holiday.

General sentiment remained cautious after the US increased tariffs on Chinese goods by 15% on Sunday, Sept. 1.

The US and China are reportedly struggling to agree on when they can continue the trade talks, amid the rising tariffs.

Asian markets ended mixed, with Japan’s Nikkei 225 up 0.02% or 4.97 points to 20,625.16. The Hang Seng index tumbled 0.39% or 98.70 points to 25,527.85, while the Shanghai Composite rose 0.21% or 6.05 points to 2,930.15.

Back home, the mining and oil counter was the only bright spot for the market as it jumped 2.48% or 228.93 points to 9,429.40. Mining firms continued to enjoy a boost in sentiment as they expect to benefit from Indonesia’s export ban on its nickel output.

“Investors are currently focusing on mining stocks after Indonesia came out and announced that they would be banning exports two years earlier than the original plan,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.

The rest of the counters went down, led by holding firms which dropped 1.86% or 146.74 points to 7,734.42. Services shed 1.6% or 25.91 points to 1,587.91; property slumped 1.26% or 50.65 points to 3,940.63; industrials retreated 1.05% or 116.74 points to 10,915.64; while financials dipped 0.47% or 8.64 points to 1,794.98.

Some 1.19 billion issues valued at P6.83 billion switched hands, improving from the previous session’s P5.27 billion. Decliners were almost double the advancers, 125 to 67, while 56 names ended flat.

Foreign investors turned net buyers at P104.99 million, compared to Monday’s P665.19 million in net sales.

“The PSEi broke below its support of 7,920 and may now test the next support line at 7,750. The general investor sentiment for our market continues to remain very cautious despite almost hitting 8,000 last week,” AAA Equities’ Mr. Mangun said.

Duterte spokesman ‘referred’ ex-mayor’s plea for parole

PRESIDENT RODRIGO ROA Duterte’s spokesman referred the application of a convicted former mayor for executive clemency, according to the chief of the countrys’ parole board.

Salvador S. Panelo, who is also the president’s chief lawyer, had written a letter dated Feb. 26 referring the plea of former Calauan Mayor Antonio L. Sanchez’s daughter to free her father, Reynaldo G. Bayang, who heads the Board of Pardons and Parole, told senators yesterday.

“We are referring this matter to your good office for your evaluation and whatever appropriate action you may want to undertake under the premises,” according to a copy of the letter.

The board had rejected the ex-politician’s application, Mr. Bayan said at a hearing investigating the early release plan for Mr. Sanchez and thousands of other convicts for good conduct.

Mr. Panelo, who lawyered for Mr. Sanchez in his rape-slay case for which he was sentenced to seven life terms in 1995, yesterday told a briefing he never recommended his release.

The presidential spokesman also said he had met with the ex-mayor’s family about their clemency request at the presidential palace in February, where he promised to “refer the same as we refer all.”

He also did not see anything wrong about dealing with the Sanchez family. “It was 27 years ago. Another thing, I was only one of the lawyers. I was not even the lead counsel,” he said.

In a separate statement, Mr. Panelo said the president has asked the Justice department to study if authorities could rearrest about 2,000 heinous crime convicts released for good conduct.

Of the 22,049 inmates released for good conduct since 2013, 1,914 had been convicted of heinous crimes, according to data from the Bureau of Corrections.

Meanwhile, three senators have filed a bill seeking to repeal the law allowing the early release of a convict for good conduct.

In a joint statement, Senate President Vicente C. Sotto III and Senators Richard J. Gordon and Panfilo M. Lacson said “there’s a logical reason to abandon the grant of good conduct time allowance if the magnitudes of its aftermath are prejudicial for many of the victims and their relatives who are seeking justice.”

About 2,000 inmates convicted of heinous crimes have been released since the start of the decade even if they were not supposed to be covered by the law.

At the hearing yesterday, senators asked Bureau of Corrections Director-General Nicanor E. Faeldon why he approved Mr. Sanchez’s release. The prison chief earlier said he postponed his release pending a review.

Lawmaker learned at the hearing that the Sanchez family had also sought the help of former Laguna Governor Emilio Ramon P. Ejercito III and former Ilocos Norte Rep. Imelda R. Marcos for his early release.

His wife Elvira also admitted meeting with Mr. Faeldon at his office on Aug. 21, a holiday. “We went to his office to clarify the things that we heard about the news that my husband was about to be released,” she told the hearing.

Also yesterday, Party-list Rep. Jericho B. Nograles said officials who approved the release of felons convicted of heinous crimes should be charged criminally and administratively.

For his part, Albay Rep. Edcel C. Lagman said the release of the convicts was a “massive jailbreak.” “Since their improvident release is errant and illegal, they must be reincarcerated as virtual fugitives to serve their full sentences.” — Charmaine A. Tadalan, Vince Angelo C. Ferreras and Arjay L. Balinbin

Court junks lawsuit for protection of disputed shoals

THE Supreme Court has rejected a plea from fishermen and a lawyer’s group to force the government to protect three disputed shoals in the South China Sea.

The high court dismissed the lawsuit without ruling on the merits and after the plaintiffs withdrew from the case, the court’s Public Information Office said in a statement yesterday.

It cited fisherfolk’s affidavits presented by the Office of the Solicitor General (OSG) denying knowledge of the lawsuit.

The Integrated Bar of the Philippines and the fishermen in April asked the court to compel the government to protect the Scarborough Shoal, Second Thomas Shoal and Mischief Reef. The Philippines calls them Ayungin Shoal, Panganiban Reef and Panatag Shoal, respectively.

Named respondents were Environment Secretary Roy A. Cimatu, Agriculture Secretary Emmanuel F. Piñol, Philippine Coast Guard Admiral Elson E. Hermogino and several others. The court held hearings in July.

After talking with some of the fishermen, the lawyer’s group later filed a motion signifying their clients’ withdrawal from the case.

“The counsels were cautioned that they should be ready with the necessary evidence before they seek the issuance of extraordinary writs,” the court said.

The court also said lawyers should communicate with their clients. “Mere difficulty in contacting clients should not be used by the counsels as an excuse to renege on their duties and to disengage from their commitments,” it said. The lawyers “would be dealt with more severely” if they repeat their mistakes, it said.

Scarborough Shoal, which China seized from the Philippines during a standoff in 2012, is also claimed by the Philippines and Taiwan.

Mischief Reef, which China has occupied and controlled since 1995, is also claimed by the Philippines, Taiwan and Vietnam.

The Philippine Navy maintains a presence of less than a dozen navy personnel on a 100-meter-long landing craft that was deliberately run aground at the shoal in 1999 in response to Chinese reclamation of Mischief Reef. — Vann Marlo M. Villegas

Court junks motions to dismiss plunder suits

THE COUNTRY’S anti-graft court has rejected separate pleas to dismiss plunder cases against a former congressman and a businesswoman accused of masterminding the so-called pork barrel scam.

The Sandiganbayan Fifth Division denied the pleadings filed by former Party-list Rep. Edgar L. Valdez and Janet Lim-Napoles, according to a copy of the 34-page resolution issued by the court on Aug. 28. It said there is sufficient evidence that the two were involved in the scam.

“Valdez and Napoles hypothesize in their respective demurrers that the jurisdictional amount of P50 million for the crime of plunder to prosper was not established by the prosecution,” the court said. “The arguments are unpersuasive.”

The Sandiganbayan found evidence showing that Mr. Valdez had pocketed at least P50 million from his priority development assistance funds.

The program, which allowed legislators to fund small-scale projects that fell outside the national infrastructure program, was voided by the Supreme Court in 2013 for being illegal.

“A scrutiny of the records demonstrates that there is sufficient evidence showing that Valdez accumulated more than the amount of ₱50 million from his PDAF funded projects from 2004 to 2010,” the court said.

“We cannot turn a blind eye to the piles of evidence proffered by the prosecution,” the court said. “Above and beyond, herein accused still have their day in court to present evidence in their defense.”

The court set the defense’s initial presentation of evidence for Sept. 12. — Vince Angelo C. Ferreras

Children born out of wedlock outnumber legitimate ones

ILLEGITIMATE children in the Philippines have outnumbered kids born after marriage and their rights should also be protected, a Supreme Court magistrate said yesterday.

Based on Philippine Statistics Authority data, 53% of those born in 2017 were illegitimate, Justice Henri Jean Paul B. Inting said at a hearing that tackled the inheritance rights of illegitimate children.

He added that Eastern Visayas has the biggest ratio of children born out of wedlock at 65%, followed by the National Capital Region with 64.9%.

“We need to give protection to these children because they now outnumber our illegitimate children,” Mr. Inting said during oral arguments.

Former Ateneo de Manila School of Law Dean Cynthia R. Del Castillo, a friend of the court, said a clause in the Civil Code that differentiates legitimate from illegitimate children on inheritance is unreasonable, inconsistent and can lead to an absurd situation.

“The legal and societal disadvantages suffered by illegitimate children have not sufficiently deterred unmarried couples from creating them,” said law professor Elizabeth Aguiling-Pangalanan, another friend of the court. “Therefore Article 992 of the Civil Code and other provisions such as Art. 175 of the Family Code that deny illegitimate children rights merely because of their status do not achieve any state interest and is inconsistent with our treaty obligation.”

The court held oral arguments on a 2013 petition of Amadea Angela K. Aquino whose father died months before her birth and was not able to marry her mother.

She is questioning a decision of the Court of Appeals reversing a trial court ruling that included her in the inheritance of her deceased grandfather from her father’s side.

She said her grandfather and relatives from her father’s side have recognized her as a natural child of her deceased father. — Vann Marlo M. Villegas

Batanes still under signal #1 as Liwayway strengthens on its way out

SEVERE TROPICAL storm Liwayway continued to intensify as it moves out of the Philippine area, placing Batanes under typhoon cyclone wind signal #1 for a second day. In its 5 p.m. update on Tuesday, weather bureau PAGASA said Liwayway, coupled with the southwest monsoon, will continue to bring rains today over Batanes, Babuyan Islands, Ilocos Region, Central Luzon, Metro Manila, CALABARZON (Cavite-Laguna-Batangas-Rizal-Quezon), northern portions of Palawan including the Calamian Islands, Mindoro provinces, and the Cordillera Administrative Region. Liwayway is expected to be out of the country between Wednesday late evening and Thursday morning. Meanwhile, PAGASA is monitoring another low pressure area off the southeastern part of the country.

Cebu City creates task force with DPWH to address flooding

A TASK force composed of the Department of Public Works and Highways (DPWH) and the city’s own Department of Engineering and Public Works has been created to address the longstanding and worsening flooding problem. “The flood yesterday (Sunday) was like an eye-opener for us,” Mayor Edgardo C. Labella told reporters Monday. Among the heavily flooded streets following rains over the weekend were N. Bacalso Avenue, Sanciangko Street, Colon Street, and Manalili Street. In a coordination meeting Monday, Mr. Labella said he was told that the DPWH-Cebu City District Engineering Office has ongoing flood control projects worth P1.2 billion for Cebu City and neighboring Mandaue City this year. The city government, meanwhile, has P1.5 billion worth of flood-control projects unutilized from the continuing appropriations in the 2015 budget. “The inter-agency task force will make an evaluation study on these flood-control programs of both the city and the DPWH so that there will be no overlapping and so that there will be coherence in implementing these projects,” the mayor said. DPWH District Engineer Florida P. Nuñez said her office will also assist the city in the regular clean-up of drainage systems to lessen flooding incidents. — The Freeman

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