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Clark Freeport takes in 54 new locators in first seven months

THE Clark Freeport Zone said it added 54 new locators in the first seven months of 2019, generating 5,295 new jobs.

Clark Development Corp. (CDC) Vice President for Business Enhancement and Business Development Group Evangeline G. Tejada said locators in the economic zone now total 1,092.

“The increase in numbers of locators and workers in Clark can be attributed to the sound economic policy (in place) since 2016,” CDC said in a statement.

Aside from its fiscal and non-fiscal incentives, several infrastructure projects are being completed in Clark Freeport Zone, which has attracted businesses, and property developers fleeing the congestion in Metro Manila.

These include the new terminal for Clark International Airport, due to be completed in 2020; the Subic-Clark Railway project, to be completed by 2022; and the 147-kilometer North-South Commuter Railway which will have three segments, a 56-kilometer line from Calamba to Tutuban, a 38-kilometer line from Tutuban to Malolos, and a 53-kilometer line from Malolos to Clark. It will be finished by 2023.

The top employers in the zone are industrial firms, followed by the Information and Communication Technology (ICT) and estate developers. The development of the National Government Administrative Center is also expected to expand the number of public jobs in Clark.

Phase 1A of New Clark City, the National Government Administrative Center, is 90% complete after more than a year of construction. The center houses sports facilities which will be used for the 30th Southeast Asian Games in November, including a 20,000-capacity stadium; 2,000-seater aquatics center; and an Athletes’ Village. — Vincent Mariel P. Galang

Taiwan firms keen to strike up distribution deals with local firms

TAIWAN’s trade office said its companies are hoping to bring innovative products to the Philippines via tie-ups with domestic distributors.

“I believe the products we offer and showcase in this event fit the needs of Filipinos, (who) attach high importance to family life. That’s why I’m quite optimistic about the results of this exhibit,” Chang Wen Chong, director of the Taipei Economic and Cultural Office (TECO), told reporters during Thursday’s “Wow! Taiwan” exhibit in Makati City.

Mr. Chong said the Philippines has a young and dynamic population that is open to innovative products, including food, cosmetics, fashion, technology, and modern household products from Taiwan.

“They are also interested in Taiwanese culture, as seen in the huge numbers of Filipino visitors flocking to Taiwan. In fact, the Philippines had the most number of arrivals from Southeast Asia in Taiwan last year. Currently, the potential is high in the Filipino market because the younger generation has more disposable income and are open to new and unique products,” he said.

The exhibit was brought to the Philippines by Taiwan’s Bureau of Foreign Trade, Ministry of Economic Affairs, and Commerce Development Research Institute (CDRI).

Taiwan brands featured in the event were XYZprinting, Inc., Brinno, Inc., HiMirror Mini, Master Mi, Carnation, Yumark, FECA, Kid2Youth, Washcan, Jye Li An, Bung Cheng, Shuter Enterprise Co. Ltd., H&J Food, and Chung-Hsiang Foods.

Tammy Ting, department manager at CDRI, said through the event, Taiwan’s entrepreneurs are aiming for long-term partnerships with local partners while opening their brands to new markets.

She said she hopes that the exhibit will result in “cooperation” between Taiwanese manufacturers and Philippine buyers.

“The outcome will slowly reveal itself as time passes,” she said, when asked about she would quantify the expected outcome of the exhibit.

Among Taiwan’s innovative brands is HiMirror, which is selling a “smart mirror” that uses skin analysis technology that allows it to track progress of treatments, and provide recommendations based on skin condition. It analyzes skin condition through just a photo.

Another brand, Brinno, offers a time-lapse camera that delivers “superior” full high definition HDR (high dynamic range) images. The company started its design business in 2003 and claims to be a first mover in time-lapse photography. Brinno develops hardware and software solutions, and puts them in one digital device. — Victor V. Saulon

PHL, Germany agree to set up Joint Economic Commission

THE Philippines and Germany have signed a joint declaration of intent to set up a Joint Economic Commission (JEC), a platform for expanding bilateral trade and investments, a German chamber of commerce official said.

“We are enthusiastic about Philippine-German trade relations through setting up a JEC as it will strengthen more economic partnerships across many sectors,” said Tristan Arwen Loveres, president of the German-Philippine Chamber of Commerce and Industry (GPCCI).

He said the signing of the joint declaration of intent “is a remarkable signal on the partnership and we are looking forward to (via) the JEC.”

Trade Undersecretary and Board of Investment Managing Head Ceferino S. Rodolfo and German Parliamentary State Secretary Thomas Bareifl signed the declaration on Aug. 20 at the Federal Ministry for Economic Affairs and Energy in Berlin.

GPCCI said Germany is the biggest trading partner of the Philippines in the European Union and its 11th largest trading partner with a total trade of $7.4 billion in 2018. — Victor V. Saulon

Romblon solar facility to start operations in Sept.

SUWECO Tablas Energy Corp. (STEC) expects its P550-million solar power plant in Tablas Island, Romblon to start commercial operations by September, the company said as it launched on Wednesday a hybrid solar-diesel microgrid with a battery facility.

“An estimated P180 million per year will be saved from the government subsidy for universal charge for missionary electrification,” STEC said in a statement.

The savings also come from avoiding the use of 3 million liters of fossil fuel and reduced carbon emissions of 6.5 million kilograms per year, the company said.

STEC claims to be the country’s first and largest hybrid solar-diesel microgrid with battery facility. Built on a 9-hectare property in Tablas, it is capable of producing 7.5-megawatts of electricity at peak.

The clean and reliable energy for the entire island is enough to support the daytime power requirements of the area’s 43,400 households.

“Excess solar power will be stored in the plant’s batteries and will be used to maintain a reliable system while diesel generators will produce electricity at night,” the company said.

STEC said the households used to experience daily power outages because of the limited supply from state-owned National Power Corp.’ small power utilities group, or SPUG, which is not connected to the national grid and depends on diesel-power sets.

The facility’s launch comes after President Rodrigo R. Duterte in July called on the Department of Energy to ease the development of renewable energy resources to cut the country’s reliance on traditional energy sources.

“We recognize the urgent need to ensure the sustainability and availability of resources and the development of alternative ones. In this regard, I trust that Secretary (Alfonso G.) Cusi shall fast-track the development of renewable energy sources, and reduce dependence on the traditional energy sources such as coal,” he said in his State of the Nation Address in July.

STEC is an affiliate of Sunwest Water and Electric Co., Inc. (Suweco), a pioneer in the implementation of hybrid technology in the Philippines. It operates in Catanduanes, Sorsogon, Romblon and Antique.

Suweco, which operates several mini-hydro and diesel power plants, is a member of the Sunwest Group Holding Co. Inc., a business group founded by Elizaldy S. Co, a Legazpi City-based entrepreneur and businessman. — Victor V. Saulon

Bill proposes health warnings for alcoholic beverages

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A LEGISLATOR has filed a bill proposing health warnings on the packaging of alcoholic beverages and in restaurant menus offering such drinks.

Muntinlupa Rep. Rozzano Rufino B. Biazon filed House Bill 4059 which will require health warnings on such products, as well as menus printed by establishments offering such beverages.

Mr. Biazon was also one of the authors of the Tobacco Regulation Act in the 12th Congress which provided that health warnings must be put to packaging of tobacco products.

“Alcohol is also addicting, with alcoholism plaguing society in the same way as narcotics addiction. Both are (forms of) substance abuse which lead to disease and mental health problems,” he said.

He added, “But unlike cigarettes which have an effect mainly on the user and to those in close proximity, alcohol can cause harm or even death to others because of its effect on the person consuming the substance.”

The bill also requires establishments that offer alcoholic beverages to include health warnings where they appear on the menu.

Violations face a potential fine of P1 million on the first offense, P2 million for the second offense, and P3 million and revocation of license on the third offense. — Vince Angelo C. Ferreras

Senator backs cadet police training as part of mandatory ROTC

A LEGISLATOR said Thursday that he supports cadet training for the police service to be offered to Senior High School (SHS) students undergoing the mandatory Reserve Officer Training Corps (ROTC) program.

The Senate on Thursday re-opened discussions on the proposed mandatory ROTC program for Grades 11 and 12. Senator Francis N. Tolentino said that as part of the program, basic training in police missions such a law enforcement, disaster preparedness, and traffic management should also be included.

The senator cited Malaysia and some cities in the US, whose police forces have cadet programs for basic traffic and disaster management.

“I would want you to look at the examples of Malaysia and the Los Angeles Police. In the Los Angeles Police, they have the Los Angeles Police Cadets (who are in) Senior High School. Sa Malaysia, ang pinagmamalaki nila (In Malaysia, they have) the Malaysia Police Youth Corps, which is similar to the ROTC,” he said during the committee hearing.

Mr. Tolentino filed Senate Bill No. 212 on July 2, which calls for the mandatory basic military and police training for SHS student in public and private schools.

On the other hand, Senator Sherwin T. Gatchalian, an advocate of the mandatory ROTC, said that an ROTC program for SHS students nationwide will require a budget of P38 billion annually.

“If we cannot guarantee the P38 billion and we implement this haphazardly, we will not see a new and improved ROTC,” he said during the hearing.

Mr. Gatchalian refiled SB No. 177, which also calls for mandatory ROTC for SHS students, with the additional focus on disaster preparedness.

Last year, President Rodrigo R. Duterte certified as urgent a bill requiring high school students to undergo military training. — Gillian M. Cortez

Globe says cancer fears among factors delaying cell site rollout

GLOBE Telecom Inc. said it has tapped medical experts to address fears of cancer risk from mobile phone use and proximity to cell towers, which it cited as a factor in delaying the construction of cell sites.

In a statement on Thursday, Globe cited Philippine Radiology Oncology Society (PROS) Vice-President Johanna Cañal said that based on studies conducted overseas, there are “no adverse health effects” from cellphones or cell towers radiation.

“(T)here has been no proven causality between cellphone use and cancer induction. What does the US FDA say about this? In 2018, the current safety limit is set to include a 50-fold safety margin from observed effect on radiation. How about cell towers and base stations? The American Cancer Society says at ground level, near typical base stations, the amount of RF energy is thousands of times less than the limits for safe exposure,” she said.

Citing data from the World Health Organization, Globe reported that cellphones give off low levels of radio frequency, categorized by WHO as RF Classification 2B.

Globe Director for Technology Strategy & Service Integration Gerhard P. Tan said he hopes the campaign will aid in the establishment of more cell sites amid resistance from home owners associations (HOAs).

“We are urging everyone who are here to spread awareness that RF electromagnetic radiation coming from cell sites is not cancerous. Debunking this health myth will help us hasten the build of more cell sites in the Philippines, which in effect, will bring the country closer to first world internet connectivity,” he said in a statement. — Gillian M. Cortez

Ecuador fights banana fungus threatening banana crop

NEW YORK — The detection of a banana-killing fungus in neighboring Colombia is setting off alarm bells in Ecuador, the world’s biggest exporter of Americans’ favorite fruit.

Growers in Ecuador, where bananas generate $2.6 billion in exports and 2.5 million jobs, are battling to prevent Fusarium TR4, also known as “Panama Disease” or “Fusarium wilt.” Some farms are disinfecting shoes, tools and vehicles and have set up unique access paths for workers. Others are considering putting up fences to isolate crops, the association of banana exporters says.

Ecuador has more than 7,000 growers, many with very small plots that sometimes share water supplies, leaving areas vulnerable to infestation. The fungus’ arrival could be “catastrophic,” said Marianela Ubilla, vice president of the association.

“This is very worrisome to us because the fungus is moving about 100 kilometers (62 miles) a year,” and has traveled to the Middle East, Asia and Australia, Ubilla said by telephone from Quito.

While Ecuador began preventative measures even before Colombia detected the fungus earlier this month in 175 hectares (432 acres) near the border with Venezuela, tensions are now running higher in the region. Colombia authorities have stepped up surveillance to try to contain the disease.

Fusarium TR4 can be transmitted through planting materials or infected soil particles carried by clothes, water or vehicles. It can remain dormant in soil for decades. Smuggling plants across borders is another way of spreading the disease. While the fruit is safe to eat, there’s no treatment for plants, which wither and die.

Colombian Agriculture Minister Andres Valencia Pinzon met earlier this month in Quito with representatives of the 15 main exporting countries to present steps his country has taken. The ministry is also considering offering funding for smaller producers as part of efforts to have all growers meet export standards.

In Guatemala, the top supplier to the US, authorities are tightening customs on goods as well as setting up airport checkpoints to scan for people arriving from countries suspected of having the disease.

The menace comes as Latin American farmers face low prices for some of the regions’ other top farm exports, including sugar and coffee. The Philippines, Costa Rica, Colombia and Guatemala complete the list of five biggest banana shippers. Latin America accounts for 25% of world banana production and 80% of exports.

The region’s efforts to prevent the spread of the fungus should be of keen interest to U.S. consumers, who gobble down more than 28 pounds of bananas each a year on average, according to Rabobank, citing 2017 data, the most recent.

U.S. import prices climbed to multi-year highs early last year amid weather and disease disruptions. With most supply coming from one variety, the export market is vulnerable, said Rabobank analyst Roland Fumasi.

“Bananas are such a global staple in the world diet that every time there’s a major disruption, or a disease threat, there’s got to be concern,” Mr. Fumasi said by telephone from Fresno, California. — Bloomberg

DBM seeking EO extending validity of capital outlays after delayed budget

THE Department of Budget Management (DBM) said it proposed that the President issue an executive order extending the deadline to complete capital outlay items to make up for the delay in approval of the 2019 national budget.

“Our proposed EO (executive order) is only for extension for (capital outlay) payments,” DBM Acting Secretary Wendel E. Avisado said during the Development Budget Coordination Committee (DBCC) 2020 budget briefing at the House of Representatives Thursday.

Mr. Avisado said the request for an executive order is being reviewed by the Office of the President.

He also clarified that the extension request was only for the payments and not the extension on capital expenditure which he said will require Congressional approval.

“Appropriations for infrastructure, capital outlays, including subsidies to GOCCs for infrastructure projects shall be valid for obligation until the end of this year or Dec. 31, 2019, in accordance with section 65 of the General Appropriations Act of 2019, while the completion of construction, inspection and payments shall not be made later than Dec. 31 of next year.”

Meanwhile, Antique Rep. Loren B. Legarda said the delay in passing the budget caused the non-release of some appropriations and that their validity should be extended until next year.

Ms. Legarda’s House joint resolution no. 9 seeks to amend Section 65 of Republic Act No. 11260 or the General Appropriations Act of Fiscal Year 2019, to extend the validity of maintenance and other operating expenses and capital outlay appropriations until Dec. 31, 2020.

Infrastructure and other capital outlay disbursements fell by 11.7% year on year to P311.4 billion in the first half, missing a P392.9-billion target for that period by a fifth.

The government operated on a reenacted 2018 budget until mid-April when the President signed this year’s P3.662-trillion national budget. He also vetoed P95.3 billion worth of spending.

Economists and economic managers have blamed the budget impasse for the slower-than-expected 5.5% economic growth in the second quarter.

The economy will have to grow an average of 6.4% in the second semester to hit the lower end of the 7-9% growth target for 2019. — Beatrice M. Laforga

Rethinking Subversion

Plans are afoot to bring back the long dead Anti-Subversion Act that became LAW 62 years ago. The military, the police and the Department of Interior and Local Governments (DILG) are asking Congress to do just that on the argument that its re-enactment — it was repealed in 1992 during the Fidel V. Ramos presidency — will enable the Duterte regime to defeat the New People’s Army (NPA) and destroy the Communist Party of the Philippines (CPP) that commands it.

This is the second time that its return has been contemplated. A similar suggestion from her favorite general, Jovito Palparan, was briefly entertained in 2007 by then President Gloria Macapagal-Arroyo. But not only the CPP is likely to be targeted today (the NPA is already illegal). Its alleged “front organizations” — students’, workers’, farmers’ , teachers’, lawyers’ well as human rights defenders’ groups — may actually be the main targets of a reenacted Anti-Subversion Act.

Legal experts have commented extensively on the many legal infirmities of the original, but little has been said about the context in which it was passed — and about its intentions other than to just outlaw the Communist Party.

Republic Act 1700 was passed by the Philippine Congress in 1957 during the Carlos P. Garcia administration. It was shortly after the defeat, with the help of the US Central Intelligence Agency (CIA), of the HMB (Hukbong Mapagpalaya ng BAYAN — People’s Liberation Army) rebellion.

It was the height of the Cold War between East and West, which began shortly after the end of World War II. In March, 1946, Winston Churchill, Britain’s wartime prime minister, had decried the existence of what he called an “Iron Curtain” that the now defunct Union of Soviet Socialist Republics (USSR) had erected across the Eastern European countries. Churchill called for an alliance of “the English-speaking peoples” of the Western world in preparation for war with their former WWII ally.

Churchill made much of the USSR’s supposed command over the communist parties of the world. In October, 1949, three years after his “Iron Curtain” speech, the Chinese Communist Party (CCP), after nearly 30 years of civil war, won nation-wide victory, and proclaimed the People’s Republic of China.

The victory of the CCP was presented by Western propaganda to the rest of the world as proof of the impending triumph of “the international communist conspiracy” that Moscow was supposedly directing. It was the same “conspiracy” that the US and the dynasties in control of the Philippine government blamed for the Huk rebellion over which the old Partido Komunista ng Pilipinas (PKP) had political command. It was to prevent a repeat of the PKP attempt to win political power, together with their resistance to putting in place the changes the country so desperately needed, that was among the reasons why RA 1700 was passed.

The Act, however, went beyond the claim that the PKP it was outlawing was engaged in overthrowing the government. It also said that the Act was meant to prevent the establishment of a totalitarian regime and the government’s being placed “under the control and domination of an alien power,” which at that time was generally assumed to be, or outrightly identified as, the USSR.

The Act’s constitutionality was several times challenged on the argument that it was a bill of attainder because it penalized without trial mere membership in an organization, and that it was also an ex post facto law that retroactively punished acts that were previously not illegal.

The martial law regime of Ferdinand Marcos used the Act to arrest and imprison without trial thousands of men and women it claimed were guilty of “subversion.” Using his legislative powers, Marcos amended it in 1976 by including among its targets organizations engaged not only in overthrowing the government, but which were also doing so with the “open or covert assistance and support of a foreign power by force, violence, deceit or other means.” This time the “foreign power” alluded to was assumed to be the People’s Republic of China, which at that time was accused of politically and materially helping the Philippine counterpart of the CCP.

Significantly, the Act did not prevent either the rise of revolutionary peasant, worker and student groups or the “reestablishment” of the Communist Party of the Philippines (CPP) in 1968 and its organizing the New People’s Army (NPA) in 1969. Neither did Marcos’ amending it prevent the CPP and the NPA from growing in number, strength and influence during the 14 years (1972-1986) of the Marcos kleptocracy and after.

The Act as amended was repealed during the presidency of Fidel V. Ramos, who, despite his military background, took a more sophisticated approach to the ruling elite’s focus on ending rebellions and “insurgencies.”

Speaking in 1992 when he signed the bill repealing the Anti-Subversion Law, Mr. Ramos described the repeal as indicative of the government’s confidence “in the resilience of our democracy” and a challenge to “communist insurgents” to “compete under our constitutional system and free market of ideas.”

He went on to assure those who had taken up arms that his administration, rather than relying on military means alone, was “addressing the root causes of rebellion” and was determined to “reduce poverty, remedy injustice, remove ignorance and protect the law-abiding.”

Mr. Ramos knew that the democratization of politics and governance could put an end to rebellion and armed social movements once it met the demand for reforms from such previously disempowered sectors as farmers and workers. The repeal of the Anti-Subversion Act was part of his long-term and certainly more astute strategy of putting an end to the conflicts that have riven the country for decades.

The advocates of reviving the Act today would do well to rethink their assumption that it will do what they think it will, not only because of what it failed to accomplish during the years it was in effect from 1957 to 1992 but also because of its anti-democratic character. And rather than reviving it, they should instead focus on preventing the country’s falling into authoritarian rule and its being taken over by another foreign power.

The original targets of the “foreign power” phrase in the Act — the Soviet Union and Socialist China — have since morphed into a gangster regime and a capitalist predator. The rulers of Russia are focused only on staying in power. Xi Jinping’s China no longer supports national liberation movements anywhere, and in fact cozies up to dictators in the pursuit of its interests.

The possibility of the country’s being taken over by another alien power has nevertheless become even more likely today than at any other time in recent history. During the troubling and troubled watch of the provincial despotism now in command of the police, military and civilian bureaucracies, imperialist China has made significant inroads into the country’s territorial seas and exclusive economic zone, as well as in Philippine society, its economy and its politics.

The imminent danger to this country and its people is the subversion of the Constitution through the reimposition of authoritarian rule and the sell-out of the country to another foreign power. The Philippine National Police, the Armed Forces, and the DILG should propose and support a bill that will address that double treachery rather than reviving a law that was unconstitutional even then, 62 years ago. Maybe — just maybe — this country can then end up with a real anti-subversion act.

 

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

www.luisteodoro.com

Strategy

In love and war, timing is everything.

The wise general knows when to fight and when to retreat. There are occasions when he has to decide to lose a small battle in order to win the big war.

Strategic retreat does not signify total surrender or defeat. It can give the leader and his troops some valuable time — for tactical panning to succeed in the final confrontation. It could give the enemy a false sense of security and cause him to slide into complacency.

Struggles for supremacy occur on all levels of life and for many reasons — institutional, political, professional and personal. Power, ego, prestige, recognition, money and love are the important and sensitive areas of competition.

The corporate battlefield is the arena of many interesting encounters. The titans, known to be ruthless masters of strategy, plan and execute their attacks with cold-blooded cunning and precision. Corporate raiders take calculated risks and strike when logistical conditions are favorable. During a skirmish, a pragmatic leader is realistic enough to know when to continue fighting or when to cut his losses and concede. Thus, he can conserve vital resources and energy for the other clashes to achieve victory.

The desire and ambition to be number one, or first among equals, is a compelling force. Colleagues compete for recognition in the industry. Peers fight for promotions within the corporation. Senior executives aspire for the ultimate trophy — the CEO post with glory and all its perks.

The climb to the top is a long, arduous process. It is a lifetime goal. Unless, by a sudden twist of fate, one is catapulted to a lofty position of power and fame.

History has proven that power or the perception of power is seductive, beguiling, heady and addictive. Once attained, it is not easy to relinquish. Even when it is time to do so.

 

Maria Victoria Rufino is an artist, writer and businesswoman. She is president and executive producer of Maverick Productions.

mavrufino@gmail.com

Laundering is plundering

On Aug. 20, the Anti-Money Laundering Council (AMLC), through its secretariat, published its Rules of Procedure in Administrative Cases under R.A. 9160 or the Anti-Money Laundering Act (AMLA) of 2001. These rules seek to protect and preserve the integrity and confidentiality of bank accounts and to ensure that our country shall not be used as a haven for money laundering, financing of terroristic activities and other crimes.

Meant to make administrative investigations quick and efficient, the proceedings are summary, without need of utilizing the very technical rules of evidence that are characteristic of trials before our regular courts. No motions or requests for clarifications, dismissal, quashal or other temporary orders are to be entertained.

Sanctions are defined as actions taken by the AMLC that shall include both penalty and non-penalty measures such as assessment or monetary sanctions, reprimand or formal censure, warning that puts a respondent on guard against the consequence of impending or future violations and restoration which refers to the restitution of the value of a monetary instrument or property that was released in violation of a freeze order, provisional asset or asset preservation order. Interestingly, one is considered to have committed a violation of the AMLA or any of its regulations on a “per order,” “per account,” “per transaction,” “per customer,” or “per examination or daily basis.” One violation is one count.

In determining what particular sanctions are to be imposed, “attendant circumstances” such as asset size or financial capability of the respondents to comply with the AMLA, and the gravity of the violation are taken into account. On the other hand, respondent’s history of non-compliance, concealment of violation, material misrepresentation, are considered aggravating circumstances. However, one’s liability can be lessened if there is voluntary disclosure, or when corrective measures have been taken to correct any findings by the AMLC’s compliance group or if the respondent’s AML rating is 3 or 4.

But the ordinary Filipino would probably query why there is a need for these new processes to take place, specifically in relation to a crime that appears to have such a tremendous effect on Third World or developing countries such as ours?

WHAT IS MONEY LAUNDERING?
It is crime where income of criminals is disguised as coming from legitimate sources or earned via legal means. It happens when the proceeds of a crime are channeled into the financial or banking system and are reduced to seemingly valid monetary documents or financial instruments and are utilized in the ordinary course of business. These monetary transactions that appear to be regular are actually funded by the money of individuals involved in illegal drugs, robbery, kidnapping, illegal gambling and even terrorism.

WHY IS MONEY LAUNDERING A CRIME?
Money laundering is a criminal offense because it allows criminals to enrich themselves by using the financial system to “cleanse” the proceeds of their illegal activities. Banks are deceived because of the heaps of legal transactions that these money gets mixed with. At the end of the day, no one would know the difference because professional money launderers openly assist other fellow launderers and their deep connections with syndicates have been formidable and challenging to break down.

EFFECTS ON THE ECONOMY AND SOCIETY
When dirty money enters the economy, it destroys the financial institutions, the professionalism and competence of its staff, and erodes its reputation and integrity. When trust is lost, the populace would hesitate to participate in boosting the economy. Executive time and resources are wasted on legal cases, regulatory and legislative investigations, and staging stakeholder management campaigns.

Money laundering promotes the proliferation of graft, crime, moral and overall societal decay. It weakens social and political institutions when communities embrace the culture of avarice and greed brought about by the infiltration of criminal funds into their everyday lives. Net result is political and economic instability. The sad fact is that money launderers favor small and underdeveloped countries, piping their resources into legitimate industries, while bleeding the people dry, in the long run.

WAY FORWARD
It is for this reason that the AMLC should be empowered to pin down individuals and entities who engage in this loathsome crime. More forensic, intelligence, technical and legal support should be provided to it in order to capably determine, trace, confiscate and seize these illegal proceeds of criminals and syndicates.

Money crimes and all their by-products and derivatives should not be allowed to wipe out the economic gains that our country has achieved so far.

 

Ariel F. Nepomuceno is a management consultant on strategy and investment.

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