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Baguio highlights battle vs urbanization’s adverse effects as city celebrates 110th anniversary

THE MOUNTAIN city of Baguio, long tagged as the country’s summer capital, has in recent years been plagued by the adverse effects of urbanization such as overpopulation, road congestion, and environmental degradation. As the city celebrated its 110th founding anniversary on Sept. 1, focus was given on balanced growth with the theme Nurturing the Environment for Sustainable Development. “Amidst the grueling challenges that our city continues to confront, we should remain focused on dealing with the serious negative effects of urbanization for us to preserve and protect the state of our environment,” Mayor Benjamin B. Magalong said in his Baguio Day message. “This will translate to a better quality of life for our people and the coming generations,” said the first-term mayor who has set out a 15-point reform agenda for a “better Baguio.” In a press conference last week, he said, “We continue to institute reforms in all areas and aspects for the city of Baguio. It requires both short term and strategic solutions. Just bear with us, please be patient with us. Rest assured that we have all the passion to institute these reforms.”

Lone STL operator in Iloilo says it cannot afford conditions for reopening

RED SUBAY Gaming Corp., the sole Small Town Lottery (STL) operator in the province of Iloilo, is unlikely to resume operations as it cannot meet the conditions set by the Philippines Charity and Sweepstakes Office (PCSO). “It is very difficult for us to comply with the conditions. We will just have to give it up if we cannot cope with it anymore,” Iloilo City Councilor Rommel D. Duron, also the legal counsel of Red Subay, said in a phone interview last week. The conditions include payment of arrears, and cash bond equivalent to three months of PCSO’s share in the guaranteed minimum monthly receipts (GMMR) on top of the existing cash bonds. “You need to buy one month and three months advance share of the PCSO, it is really difficult for us, where do they expect us to get that huge amount of money,” he said. With the conditions, Mr. Duron said they will have to deposit P333 million in GMRR on top of its existing P111 million bond. Red Subay was also given two weeks from Aug. 27 to pay its arrears totalling P390 million. President Rodrigo R. Duterte ordered the suspension of gaming operations of all PCSO outlets in late July due to alleged massive corruption. The ban for STL was later lifted, but authorized agent firms must meet the set conditions before being allowed to resume operations. — Emme Rose S. Santiagudo

Muslim schools in need of government support

ABOUT 90% of managers of Muslim schools, or madaris, in southern Philippines want government recognition and access to public funds, according to a study by the Institute for Autonomy and Governance (IAG).

“About 90% of madaris leaders surveyed aspire for government recognition and support,” says AIG study, a copy of which was emailed to BusinessWorld on Aug. 27.

A total of 169 madaris in what used to be known as the Autonomous Region in Muslim Mindanao (ARMM), now the Bangsamoro ARMM, and adjacent regions were surveyed last year.

The study found that only 1.8% of Islamic schools are not interested in applying for government recognition while 8.3% are not sure if they will apply for it.

“The interest for government recognition is expected from the traditional madaris because of the technical or financial support they can get from it,” the study said.

“This is for the purpose of sustainability and for the improvement of the quality of education comparable to other secular schools in the Philippines,” it added.

The study noted that there are at least 1,534 Muslim schools in ARMM and at least 316 in adjacent regions.

About 90% of these are kindergarten, 79% primary, 62% intermediate, 21% secondary, and 2% college.

FUNDING
These schools, which aim for the preservation and transmission of Islamic faith and identity, are struggling for existence and sustainability as they rely heavily on donations and volunteers.

There are also limited employment opportunities for their graduates due to lack of employable skills, which limit their contribution to “security and socio-economic development” of Muslim communities in Mindanao.

“They cannot compete with graduates of secular schools in finding jobs,” the study says.

Another problem the study found is Muslim school leaders and key stakeholders “are seriously concerned about the growing perception that traditional madaris are being used for recruitment by terrorist groups.”

“This perception became more pronounced after the Marawi siege in 2017, when a drastic decrease in enrollment was recorded, dampening the morale of personnel. The flow of donation and other similar support to madaris was also greatly reduced.”

School leaders interviewed said there is a need for government recognition “because it is the only way to reduce vulnerability to security threat as they will be secured by the government similar to public schools.”

The new BARMM government, currently in transition, plans to make madaris and public schools operate as an integrated system, the study noted.

Among the recommendations are for the national government to simplify the requirements and processes for accreditation and recognition of Muslims schools; financial assistance; government agencies concerned should work with Muslim schools to offer employment and enterprise training, among others; and the Office of the President should create an inter-agency coordination board for madrasah education to provide strategic policy and programming leadership, among others.

The IAG also recommended special government focus on human rights-based redress of violent extremism and terrorism, drugs, and rido (clan wars).

One way to do this is by involving the madaris sector in peace and security efforts at the municipal and barangay levels. — Arjay L. Balinbin

Aeon Credit starts financing services for tricycle drivers, operators with 1st Mindanao branch

FINANCING COMPANY Aeon Credit Service Philippines recently opened its first branch in Mindanao, located in Davao City, and has started offering its services to members of Tricycle Operators and Drivers Associations (TODA). “We saw the potential of growth in Davao considering its strategic location. That is why we wanted to have established a branch here that would also cater to the rest of the Mindanao region,” Aeon Credit Executive Vice-President Dennis C. Siapno said in an interview. “It is very difficult to borrow if you don’t have any credit history, but for us, we took the risk and we really support the government’s financial inclusion. That is the vision of Aeon even in Japan. We wanted everyone on board through financial services that eventually improve their lives and provide them source of livelihood like the tricycle drivers,” Mr. Siapno said. Michael C. Tabaday, vice-president for Business Control Division, said they are now working with over 30 TODAs in Davao City and their goal is to cover as much as a hundred, then expand to the cities of Tagum and General Santos within the year. “We are aiming to achieve that by working with the TODA presidents. Secondly, we want to work closely with Emcor,” Mr. Tabaday said. Emcor is a distributor of the Indian motorcycle brand Bajaj. Aeon Credit is a subsidiary of AFS Corporation Co. Ltd., a holding company under Aeon Bank and wholly-owned by Aeon Financial Service Co. Ltd. (AFS). — Maya M. Padillo

1ST REMOTE HEARING TO HOLD IN DAVAO CITY
THE FIRST remote court hearing, to be done through video teleconferencing, will be conducted in a Davao City court on September 2. This is pursuant to the Supreme Court’s approval in June 25 of the guidelines which will allow for the remote appearance of inmates in courts. The hearing will be hold at the Davao City Regional Trial Court Branch 16. The cases involved are frustrated murder and multiple attempted murder. The court previously said the guidelines drafted by Associate Justice Diosdado M. Peralta are intended to eliminate safety, security, and health risks of inmates considered to be high-risks or inflicted with contagious disease. Family courts in 2001 were allowed to use video-conferencing equipment during testimonies of children in trials. — Vann Marlo M. Villegas

CoA flag UP Manila, Visayas for uncollected funds from CHED

THE COMMISSION on Audit (CoA) cited the uncollected amount of University of the Philippines’ (UP) Manila and Visayas campuses for the government’s free college education program. the Republic Act 10931 or Universal Access to Quality Tertiary Education Act, the amount needed for the implementation of the law is appropriated in the budget of Commission on Higher Education (CHED), which will then reimburse state universities and colleges. According to the CoA annual audit report, only P47.8 million out of the P230.35 million billed by the UP campuses to CHED for the Free Higher Education Program was released and reimbursed. UP Manila was flagged for “delayed or non-compliance with the required supporting documents” while come claims of UP Visayas were not recorded in accounting books. “The Audit Team of UP Visayas also included in her Audit Report that the amount of receivable account from CHED was not recorded in the books. This condition is also true in other campuses, because no guidelines yet has been set during the transitory period,” said CoA. The audit agency recommended that the universities follow up or make representations on the release of the funds. — Vince Angelo C. Ferreras

August inflation rate seen easing to as low as 1.3%

By Mark T. Amoguis, Senior Researcher

THE general increase in prices of widely used goods may have slowed further in more than three years due to lower fuel, rice, and power prices in August, the central bank said on Friday.

The Bangko Sentral ng Pilipinas’ (BSP) Department of Economic Research said in an e-mail to reporters that it sees inflation for August within the 1.3-2.1% range.

“Lower domestic prices for gasoline, diesel and kerosene, the continued decline in rice prices as well as the downward adjustment in electricity rates dampened inflation pressures during the month,” the central bank’s economic research unit said.

“These could be partly offset by the recent depreciation of the peso and higher prices of selected food items,” it added.

The lower end of the central bank’s estimate matches the 1.3% inflation rate logged in June, July, and August 2016, while it would be the slowest reading since 0.9% clip recorded in May 2016.

Meanwhile, the upper band of the forecast range is equal to November 2016’s print of 2.1% and would the slowest pace since October 2016’s 1.8%. This also compares to the 2.4% logged in July and 6.4% in August last year.

In the seven months to July, inflation reached 3.3%, cooling from previous year’s 4.5%.

The Philippine Statistics Authority (PSA) will report the August inflation figure on Sept. 5.

Latest data from PSA show average retail price of well-milled rice dropped 7.3% year on year, both during the first two weeks of August reaching P42.71 per kilogram in the second week.

Likewise, average retail price of regular milled rice declined by 9.2% and 9.8% during August’s first two weeks, settling at P42.57 per kilogram at the end of the second week.

Manila Electric Co.’s (Meralco) power rates for households in the National Capital Region and its surrounding areas continued to drop for the fourth straight month in August by P0.4176 per kilowatt-hour (kWh) to P9.5674/kWh.

This represented a decrease of almost P1/kWh since May this year, according to Meralco.

During the Aug. 8 policy meeting, the BSP forecasts inflation print at 2.6% this year from already downward revised 2.7% that was adopted in its June 20 review, while it slashed next year’s forecast to 2.9% from three percent previously.

The central bank sees inflation to range 2-4% this year.

The BSP gave its inflation forecast for 2021 — 2.9% with a tilt “somewhat to the downside” due to prospects of slowing global growth.

In its July meeting, the Development Budget Coordination Committee expected inflation within the range of 2.7-3.5% (from 3-4% previously) this year, while maintained the 2-4% projection for next year until 2022.

Duterte inks law regulating Islamic banks

PRESIDENT Rodrigo R. Duterte last week signed into law the regulatory framework for Islamic banks in the Philippines.

Republic Act No. 11439 or “An Act Providing for the Regulation and Organization of Islamic Banks” was signed by Mr. Duterte on Aug. 22, but the copy was released by the Malacañang on Friday.

Under the law, the Bangko Sentral ng Pilipinas (BSP) will exercise regulatory powers and supervision over the operations of Islamic banks and issue the implementing rules and regulations on Islamic banking.

The measure, which was passed by the House of Representatives on Nov. 20, 2018 and by the Senate on June 3, 2019, will take effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation.

BSP Governor Benjamin E. Diokno said said the law’s enactment will unlock the full potential of Islamic financing in fostering inclusive economic growth.

“With a well-defined regulatory framework now in place, the BSP looks forward to seeing greater participation in Islamic financing by both domestic and foreign banks,” the central bank chief said in a separate statement on Friday.

“This is expected to widen opportunities for Muslim Filipinos, including those from the Bangsamoro Region, in accessing banking products and services. This is a great stride in our financial inclusion mandates,” he added.

The nature of Islamic banking refers to a banking business with objectives and operations that do not involved riba (interest) as prohibited under the Shari’ah law and which conducts its business in accordance with the principles of the Shari’ah.

Islamic banks to be created under this law shall comply with existing laws applicable to a private corporation engaged in banking, such as The Corporation Code of the Philippines as amended and the requirements of the respective regulatory agencies.

The law also mandates Islamic banks to constitute a Shari’ah Advisory Council, which will be composed of experts in Shari’ah, banking, finance, law and other related disciplines. The council will provide advice and to review applications of Shari’ah principles, but will not be allowed to be directly involved in Islamic banks operations.

Under the law, Islamic banks will be allowed to perform banking services, such as accepting or creating current, savings accounts and investment accounts, accepting foreign currency deposits, as well as undertake various investments in all transactions allowed by Shari’ah principles.

According to the law, the capitalization requirements of an Islamic bank shall be equal to that prescribed by the BSP for a universal bank.

The Islamic banks may also take the necessary steps to have their shares listed in the stock exchange.

So far, the only Islamic bank in the country is the Al Amanah Islamic Bank, established in 1972.

The Development Bank of the Philippines took full control of Al Amanah’s operations in 2008. — Mark T. Amoguis

6 deals signed during Duterte-Xi’s 8th meeting

PRESIDENT Rodrigo R. Duterte and Chinese President Xi Jinping on Thursday witnessed the signing of six bilateral agreements between the Philippines and China, including a $219-million loan for the Philippine National Railways (PNR) South Long Haul Project.

Finance Secretary Carlos G. Dominguez III and Export-Import Bank of China Vice President Xie Ping signed the agreement for a $219.78-million preferential buyer’s credit facility to fund the project management consultancy for the PNR South Long Haul.

The dollar-dominated loan has an interest rate of 2% per annum, with a 20-year maturity period and a seven-year grace period, the Department of Finance (DoF) said in a statement.

The PNR South Long Haul Project was among the 75 infrastructure flagship projects under the administration’s “Build, Build, Build” program, linking Metro Manila to Legazpi, Albay, Legaspi to Matnog in Sorsogon, and Calamba, Laguna to Batangas City.

The PNR’s project management consultancy covers the detailed engineering and design, preparation of the terms of reference, bidding documents, construction supervision, rolling stock and electromechanical system.

At the same time, Presidential Spokesman Salvador S. Panelo said other agreements signed by the Philippines and China included “cooperative measures and assistance in the key areas of education, science and technology, and economic growth, among others.”

These include memoranda of understanding (MoUs) on cooperation between Commission on Higher Education and Chinese Ministry of Education, and on science and technology between Department of Science and Technology and Chinese Ministry of Science and Technology.

There was also an exchange of notes on the cooperation procedure for the availment and utilization of concessional loan under a renminbi-denominated loan facility, signed by the Department of Foreign Affairs and China International Development Cooperation Agency.

Meanwhile, the Bureau of Customs (BoC) inked an implementation agreement with the Ministry of Commerce regarding the latter’s donation of four mobile X-ray container vehicle inspection systems and two luggage inspection systems to the Philippines.

The BoC also signed a separate accord with the General Administration of Customs of China that defines the guidelines on strengthening cooperation on customs matters between the two countries.

Trade Secretary Ramon M. Lopez said in statement that the bilateral meeting between the two leaders last Thursday had “focused on how we can advance peace and cooperation in many fields, like in trade and investments, infrastructure and finance, education, agriculture, science and technology, security, and working against transnational crimes and illegal drugs.”

Mr. Lopez said the Chinese President reiterated Beijing’s policy to help balance trade with the Philippines “by buying more goods especially agriculture and agri-based products and industrial goods.”

To date, Philippine exports to China have been growing at an average of 10% in the last three years, the Trade chief noted.

He added that China is “optimistic” in seeing more of its citizens visiting the Philippines.

“From only about 500,000 tourists from China in the Philippines in 2015, the number has increased to 1.2 million in 2018 and is expected to reach 1.5 million this year, helping boost the local economy,” Mr. Lopez said.

Mr. Duterte, described by Mr. Xi as his “old friend,” was on his fifth visit to China since he assumed office in 2016. It was also his eighth meeting with Mr. Xi.

The Philippine President was scheduled to attend the China Business Forum on Friday afternoon where he was expected to urge Chinese business leaders to invest in the Philippines.

“Chinese companies are also encouraged to invest in the Philippines to help increase jobs and production capacities that will enable the Philippines to enhance its exports capabilities,” Mr. Lopez said.

“The momentum of Chinese investments has been very positive as foreign direct investments (FDI) from China grew six times more in the last three years. More big-ticket projects are on the way especially in manufacturing both in heavy industries like petrochemical, iron and steel, as well as light industries like textile, construction, technology-based services, agribusiness, energy, power, transportation, infrastructure, and tourism,” he added. — Arjay L. Balinbin

China refuses to recognize arbitral ruling

CHINESE President Xi Jinping on Thursday refused to recognize the 2016 arbitral ruling that voided China’s claims to more than 80% of the South China Sea even as his “old friend” Philippine President Rodrigo R. Duterte insisted that the decision was “final, binding and not subject to appeal.”

The two leaders had a bilateral meeting in Beijing on Thursday where they discussed various issues of mutual interest, including the recurring conflict in the South China Sea.

In a statement, Presidential Spokesperson Salvador S. Panelo said Mr. Duterte was “steadfast” in raising with Mr. Xi concerns regarding the Philippines’ claims in the South China Sea, which include the ruling held by the Permanent Court of Arbitration in the Hague.

“He said that the arbitral award is final, binding and not subject to appeal,” Mr. Panelo said.

“In response, President Xi reiterated his government’s position of not recognizing the arbitral ruling as well as not budging from its position,” he added.

Mr. Duterte also brought up delays in the completion of the South China Sea Code of Conduct.

The Chinese President agreed that the code of conduct “should be crafted within the remaining years” of Mr. Duterte’s administration, the spokesman said. “Both leaders agreed to work together, on the basis of mutual trust and good faith, to manage the South China Sea issue, and to continue to dialogue peacefully in resolving the conflict.”

Mr. Duterte also raised the planned joint oil exploration in the disputed area. Mr. Xi said a steering committee has been created to prepare a substantive program on the matter, Mr. Panelo noted.

As for the June 9 Reed Bank incident where a Chinese boat sank a Philippine fishing boat and abandoned the crew in the sea, Mr. Panelo said the Philippine President took note of the fact that China has “recognized and confirmed” the responsibility of the Chinese fishing crew, adding that he also expressed his appreciation of China’s readiness to provide compensation to the Filipino fishermen involved in the incident.

At a televised press briefing from Beijing on Friday afternoon, Mr. Panelo said Mr. Xi, during the meeting, also expressed appreciation for the Philippine government’s move to suspend the acceptance of new applications for offshore gaming licenses.

Mr. Xi said they would appreciate it more if the Chinese-dominated Philippine offshore gaming operations (POGO) will be eliminated, the spokesman noted.

Mr. Panelo added: “I remember President Xi saying about loan interest. He said he will refer it to the appropriate body whether it can be done, to lower it.”

Mr. Duterte, described by Mr. Xi as his “old friend,” was on his fifth visit to China since he assumed office in 2016. It was also his eight meeting with Mr. Xi. — Arjay L. Balinbin

UHC Law will take 3 or more years to implement, says PhilHealth president

PHILHEALTH President Ricardo Morales admits that nationwide implementation of the Universal Health Care (UHC) Law will take a few years to take effect, citing funding and capability issues.

During PhilHealth’s “Kapihan with Media” on Friday, Mr. Morales said the full implementation of the UHC Law could be “in three years” or more. The UHC Law mandates that all Filipinos will be members and beneficiaries of PhilHealth.

“Since we still do not have the budget, it will be a gradual rollout, I think three to six years. In other countries, when they launched their national health service like in UK, Taiwan… it was not a grand opening… they grew it over several years until it was 100% (coverage). Ganun din ’yung atin (It will also be like that with us). We will start with 33 sites,” he said.

During the budget hearing of the Department of Health (DoH) in Congress last Wednesday, the health department said that it will only implement the UHC law in 28 provinces and five cities in its first year of implementation next year. These 33 identified implementation sites are: Valenzuela, Parañaque, Dagupan City, Baguio, Benguet, Isabela, Nueva Vizcaya, Quirino, Bataan, Tarlac, Batangas, Quezon, Oriental Mindoro, Masbate, Sorsogon, Aklan, Antique, Guimaras, Iloilo, Cebu province, Biliran, Leyte, Samar, Zamboanga del Norte, Cagayan de Oro, Misamis Oriental, Compostela Valley, Davao del Norte, Sarangani, South Cotobato, Agusan del Sur, Agusan del Norte, and Maguindanao.

This gradual implementation was met with a backlash as some lawmakers in the lower house said it defeated the purpose of the universal coverage promised by the UHC Law on availing of benefits from the state-owned health insurance organization especially in regions that lack health facilities and resources.

The DoH’s proposed budget for 2020 is P160.15 billion. The health department earlier said that it need P257 billion to fully implement the UHC Law in its first year.

Mr. Morales also noted that besides the limited budget, lack of personnel in PhilHealth is also a factor why the UHC Law won’t be fully implemented immediately. Currently, PhilHealth employs 6,000 workers of which, Mr. Morales said, only half are in plantilla positions. Lack of facilities is also another issue.

“Funding is one problem, the other one is the absorptive capacity of the organization. We have to recruit more people, put up more local health insurance offices and health offices,” he said.

The UHC Law was signed by President Rodrigo R. Duterte on Feb. 20 with DoH having a timeline of six months to draft the implementing rules and regulations (IRR). Mr. Morales said that the IRR will be released in September. — Gillian M. Cortez

Trillanes denies kidnapping charge

FORMER Senator Antonio F. Trillanes IV denies kidnapping a woman back in 2016 which is alleged to have been part of efforts in bringing down the Duterte administration. Mr. Trillanes said that this is the administration’s way of putting down critics.

Mr. Trillanes denied any involvement in kidnapping a woman after the Philippine National Police (PNP) filed charges against the former senator. He added it is already highly suspicious that the complaint was made nearly three years after the incident.

“Ito na naman ay maliwanag na harassment case at persecution ni Duterte laban sa kanyang mga kritiko (This is another clear case of harassment and persecution by Duterte against his critics,” he said in a social media message on Friday.

The kidnapping complaint against Mr. Trillanes was released on Friday. According to the complaint dated Aug. 17, Guillermina Lallic Barrido, who goes by the name Guillermina Arcillas, said that the former senator kidnapped and detained her for two weeks in 2016 to force her into agreeing to slander the current administration. The complaint was filed by the PNP through its Criminal and Detection Group — Major Crimes Investigation Unit (CIDG-MCIU).

“The complainant personally appeared before the office of the CIDG-MCIU to file a complaint for violation of Article 267 of RPC for Kidnapping/Serious Illegal Detention from De. 6,2016 up to Dec. 21, 2016 starting from Convent of Cannussian Sisters until she was transferred to Holy Spirit Convent in order to force her to sign a ready-made affidavit to destroy the reputation of the present Administration of President Rodrigo Roa Duterte,” the complaint stated.

Among the evidence presented were Barrido’s sworn statements, screenshots of text messages from her cellphone, and a polygraph examination conducted on Aug. 5.

Other respondents in the complaint are Father Albert E. Alejo, lawyer Jude Josue Sabio, and a “Certain Sister Ling of Convent of Cannussian Sisters.”

Ms. Barrido also submitted an affidavit dated April 7, 2017 that alleges Mr. Trillanes’ role in a so-called demolition job in partnership with the other respondents against Mr. Duterte.

“It is clear from the foregoing that herein respondents feloniously, maliciously and intentionally put the complainant under detention for fourteen (14) days in order to force her to do something against her will,” the complaint, signed by Police Lieutenant Colonel Domingo D. Soriano, said.

Last year, Mr. Sabio filed a case before the International Criminal Court for extrajudicial killings related to Mr. Duterte’s war on drugs. Meanwhile, Mr. Alejo was also named as one of the respondents in another PNP complaint regarding his involvement in the “Ang Totoong Narcolist” videos in which Mr. Trillanes is also a respondent. — Gillian M. Cortez

Convicts released for good conduct should go back to jail if crimes were heinous — Palace

MALACANANG on Friday said former inmates who were convicted of heinous crimes and subsequently released for good conduct should be sent back to jail.

“That cannot be done because the law is very clear. Republic Act 10592 (or the “Good Conduct Time Allowance” law) is very clear that those charged and convicted of heinous crimes, escapees, habitual delinquents and recidivists are not covered by the law,” Presidential Spokesperson Salvador S. Panelo said in a televised press briefing from Beijing on Friday afternoon.

Data from the Bureau of Corrections released last Thursday showed that of the 22,049 inmates released for good conduct since 2013, 1,914 had been convicted of heinous crimes.

“Obviously dapat makabalik sila sa kulungan (they should go back to jail) until they served the full term of their service,” Mr. Panelo added.

Malacañang’s pronouncement comes amid an uproar over the news that former Calauan Mayor Antonio L. Sanchez, a convicted rapist and murderer, was scheduled to be released from prison for what prison officials earlier described as his good conduct.

Mr. Panelo, who lawyered for the ex-mayor in the 1993 rape-slay case, earlier denied that he had anything to do with Sanchez’ planned release.

Several senators, including Senator Franklin M. Drilon opposed Mr. Sanchez’ release and said they would investigate it. Mr. Drilon was the Justice secretary who prosecuted Mr. Sanchez, who in 1995 was sentenced to seven life terms for the rape and murder of two University of the Philippines students in 1993. — Arjay L. Balinbin