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Shares decline as region weakens on US jobs data

By Arra B. Francia, Senior Reporter

LOCAL EQUITIES fell on Monday as they succumbed to the region’s weakness following strong jobs data from the United States last week.

The bellwether Philippine Stock Exchange index (PSEi) lost 0.81% or 66.42 points to close at 8,051.52 yesterday, reversing gains seen in the previous session. The broader all-shares index likewise dropped 0.65% or 32.21 points to 4,913.47.

“The index wasn’t immune from the weakness in the region… Weakness may have come from strong US jobs data last Friday, given the upcoming [US Federal Reserve] meeting later this month where the market is already expecting at least a 25 basis points cut,” Papa Securities Corp. Sales Associate Gabriel Jose F. Perez said in an e-mail.

The US Labor department reported on Friday that nonfarm payrolls rose to 224,000 in June, way beyond market expectations of 165,000. Unemployment rate, meanwhile, went up to 3.7%.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan noted that the strong jobs data has decreased the possibility for the US Federal Reserve cutting interest rates in its next policy meeting.

“Fed’s Powell (Fed Chairman Jerome Powell) delivers the monetary policy report to House and Senate panel will be a key event to watch this week, which will include the Fed’s minutes to be released on Wednesday,” Mr. Limlingan said in a mobile phone message.

With the jobs report, Wall Street indices ended with losses on Friday. The Dow Jones Industrial Average was down 0.16% or 43.88 points to 26,922.12; the S&P 500 index slumped 0.18% or 5.41 points to 2,990.41, while the Nasdaq Composite index decreased 0.10% or 8.44 points to 8,161.79.

Asian indices mostly fell on Monday, with Japan’s Nikkei 225 down by 0.98% or 212.03 points to 21,534.35.

Back home, the mining and oil counter was the lone sector that ended with gains, adding 0.39% or 29.30 points to 7,468.59.

The rest ended in negative territory led by services with a drop of 1.35% or 23.04 points to 1,676. Holding firms shed 0.93% or 73.12 points to 7,724.09; financials plunged 0.79% or 13.92 points to 1,728.09; property retreated 0.63% or 27.95 points to 4,351.80; while industrials slipped 0.12% or 15.15 points to 11,973.17.

Some 949.01 million issues valued at P5.63 billion switched hands, slightly higher than Friday’s P5.49 billion.

Decliners outpaced advancers, 119 to 74, while 50 names were unchanged.

Net foreign outflows rose to P319.03 million from the previous session’s P35.37 million.

“Market movement for tomorrow could be dictated by how US markets move tonight, in response to further moves from the aforementioned jobs data,” Papa Securities’ Mr. Perez said on Monday, noting that support is at 8,000 while resistance is at 8,139.

Gov’t, senate call for sanctions vs Chinese crew

MALACAÑANG ON Monday said the Philippine government will insist on the liability of the Chinese vessel that abandoned Filipino fishermen after an allision incident at the Recto Bank on June 9.

Several senators also called for sanctions against the Chinese crew after a joint report by the Philippine Coast Guard (PCG) and the Maritime Industry Authority (Marina) found them liable for the incident for failing to take “appropriate action to avoid the risk of collision and render assistance to a vessel in distress.”

The report also labeled the incident as a “very serious marine casualty due to the total loss of the ship.”

In a press briefing at the Palace on Monday, Presidential Spokesperson Salvador S. Panelo was asked if the Philippine government will “insist on the liability” of the Chinese vessel for abandoning the 22 Filipino fishermen.

He replied, “Definitely, kung (if) — as I said, there is only one way by which they can justify the abandonment of our fisherfolks. And that is if by so doing, their lives would have been endangered. That’s the only reason na pupuwede silang hindi (that they cannot be made) accountable,” citing the United Nations Convention on the Law of the Sea.

Asked how the Chinese nationals will be held accountable, Mr. Panelo said the matter will be up to the Chinese government because the vessel is “under its jurisdiction.”

He also noted that the Chinese government has already said in its initial statement on the incident that “they will impose sanction for their irresponsible behavior” if proven so.

If China fails to deliver on its promise, Mr. Panelo said the Philippine government “will sue” the Chinese nationals “in our jurisdiction.”

At the Senate, Minority Leader Franklin M. Drilon said the PCG-Marina report should first be publicized and should be used as basis in the filing of cases as well as liabilities under the fisheries code.

“I call on Malacañang to officially release the Coast Guard-Marina report; number two, the Marina-Coast Guard report can be the basis of the action for damages under the fisheries code,” he told reporters in a briefing on Monday.

“Even if we could not identify the crew, we could start with identifying the vessel,” he said, later noting that the Chinese government, for their part, could assist in identifying the owner, captain and crewmen of the vessel.

He also raised the significance of asserting the findings of the report, as this will reinforce the Philippines’ claims over the Recto Bank.

“It is important because non-action on the coast guard marina report can be interpreted as an acquiescence. We may not be able to completely impose our laws because of limitations, but the fact that we are acting on the incident will be an argument that will favor us in the future, when we continuously defend our position that the Recto Bank is part of the exclusive economic zone (EEZ),” Mr. Drilon said.

Senator Ronald M. dela Rosa, in a separate interview with reporters, also said the Chinese crewmen should be held liable.

“Kasuhan ang gumawa n’yan (File charges against those who committed that),” he said, noting that in failing to make an assertion in this case, the government is opening the possibility of similar incidents in the future.

COMPARE RESULTS
Meanwhile, Mr. Panelo also said that the two countries will have to compare the results of the investigations they conducted separately.

“Sabi ni [Foreign Affairs] Secretary [Teodoro L.] Locsin, [Jr.] (said), they’re going to compare our findings as against their findings, then they will issue a joint statement,” he said.

The joint statement, he said, will contain the resolution of three issues: “one, the nature of the incident; number two, the accountability of the Chinese vessel; and the issue on compensation.”

If the two findings are different, Mr. Panelo said: “Eh di pag-usapan natin kung (Then we will talk about) how can we resolve the difference.”

In a media interview at the Palace late Monday, Mr. Duterte maintained that the Recto Bank incident is “very small” because “nobody died.”

He added that he will further explain his position about letting the Chinese fish in the Philippine’s EEZ, which has been slammed by legal experts and critics as unconstitutional.

“You wait, maybe sa (during the) SONA (State of the Nation Address), I will educate na ‘yung ginawa ko sabi ko (about what I said that), ‘You can fish’. Tama talaga ako. At hindi maging unconstitutional ‘yan (I am really correct. And that will not be unconstitutional).”

“We have our recommendations, we have our report. Then we will wait for China to make its report, then we can compare notes,” the President said. — Arjay L. Balinbin and Charmaine A. Tadalan

Duterte endorses Cayetano and Velasco under term-sharing for House speakership

PRESIDENT RODRIGO R. Duterte has, after all, named a preference — two, that is — for House speaker in an attempt to end what has become a thorny fight for the post.

Malacañang announced Monday afternoon that Mr. Duterte endorsed Representatives Alan Peter S. Cayetano of Taguig and Lord Allan Q. Velasco of Marinduque under a term-sharing arrangement.

“Since the election of the Speaker has resulted in a bitter and fractious rivalry that threatens the break-up of political allies, the President, to save the unity of the alliance and avert its fragmentation, obliged to the request of the three candidates, who to their credit agree to respect the choice of PRRD,” Presidential Spokesperson Salvador S. Panelo said in a statement.

He added, “It’s Allan Cayetano as the Speaker in the first 15 months, then the next 21 months, the Speaker will be Lord Allan Velasco, with Martin Romualdez as the Majority Floor Leader,” he added.

In a media interview at the Palace, hours before he issued his statement, Mr. Panelo said the three lawmakers were seeking Mr. Duterte’s advice to resolve the speakership battle.

“They decided that if the President doesn’t help them, they will meet before the SONA (State of the Nation Address on July 22) to resolve the conflict between and among them,” he told reporters.

During the press briefing, Mr. Panelo said that if the President were to ask, he would rather leave the matter to the members of the House of Representatives.

“May the best man win, iyon ang sinabi niya (That’s what he said),” Mr. Panelo said.

“Knowing the President, hahayaan niya lang iyan. Ang style ni Presidente, matira matibay (he will just let that be. The President’s style is that the toughest will be the last man standing),” he added. — Arjay L. Balinbin

The fallacy of good intentions: The Philippine Independent Foreign Policy

Politics is swayed by the tempo and spirit of the times. Administrations in power, no matter how visionary, would always be compelled to act on the demands of the present. The Duterte administration, at the beginning of its term, presented itself as a cut different from past governments. The rhetoric of pursuing an “independent foreign policy” caught the attention of many, critics and supporters alike. Midway in its term, the “independence” of the country’s foreign policy remains contested.

The main goal of a country’s foreign policy is to advance the interests of the country and its people while maintaining friendly relations with other nations. These are two separate agendas, but the bottom line is always the pursuit of national interest. That’s why the adage in international politics is that states have no permanent friends, only permanent interests. The conundrum, however, in diplomatic relations is that while the policy makers need their own people to support the policy position they take vis-à-vis other nations, the reality is that political leaders are also not at liberty to divulge all available information to the public, especially if it involves national security concerns. This, seemingly, is the current predicament of the Duterte administration.

In light of the latest maritime incident involving the ramming of the boat of Filipino fisherfolk by a Chinese vessel, the administration is being pressured by its domestic constituents to act and show proof that it truly is advancing the interests of the Filipino people. The problematic situation, however, is that if the Philippine government takes a hard line position against China, it may fall into the “trap” that China seemingly lays with this incident. It should be noted that in 2012, when the Philippine government took a hard line position against the Chinese poachers in Panatag (Scarborough) shoal, China used its military and economic power and swarmed the shoal. To this day, the Chinese militia have not vacated Panatag shoal and has in fact de facto control over the area. The government, thus, may be concerned that taking a hard line approach might result in a repeat of that incident and the Philippines may lose control over Reed bank. Hence the soft approach. The downside of taking such a position, however, is that the government is seemingly kowtowing to the interests and gameplay of China.

Some critics claim that the case filed by the Aquino administration in 2012 was the beginning of the problem. They assert that the case was misguided since it made China even more aggressive in claiming the entire South China Sea. The reality, however, is that China had been aggressive even before the 2012 incident; its encroachment on the islands in the Philippine’s exclusive economic zone (EEZ) began in 1994 with the occupation of Mischief (Panganiban) Reef. China had deliberately trained its eyes on the Spratley’s group of islands as early as the 1990s. The late Senator Leticia Shahani, in one forum, declared that China in the 1990s required most of its graduate students to focus their research on the South China Sea. That was how strategic China’s thinking was. So the naming and blaming game by the critics and supporters of the administration vis-à-vis the South China Sea (particularly the West Philippine Sea) has nowhere to go. While both claim that they have the best interests of the people at hand, the reality is, as one poster intelligently declared, that “one point of view does not show the whole picture.”

What about the United States? The Philippines has a Mutual Defense Treaty (MDT) with the United States which was signed in 1951. In 1999, the Philippines signed the Visiting Forces Agreement (VFA), and in 2014 the Enhanced Defense Cooperation Agreement (EDCA). The “independent foreign policy” of the Duterte administration, in as far as security matters are concerned, was initially interpreted as moving away from the country’s over-reliance on the United States. But in a global competition that is dominated by the polar forces of the US and the People’s Republic of China, moving away from the US will mean gravitating towards China. Given that China and the Philippines are embroiled in a territorial dispute in the South China Sea, this obviously is not an easy situation. Besides, the Philippine military’s umbilical cord is attached to the USA due to the MDT. Moving away from the US will not happen overnight.

Moving forward, this author believes that the government must devise a truly independent and dignified foreign policy position, one that clearly shows the government’s commitment to advance the interests of its people while remaining cordial with its neighbors. It cannot always brandish the “we cannot go to war against China” card and the “we are weak” card every time there is a problem in our South China Sea territory.

This is necessary in light of the continued assertion of China over the entire South China Sea, denying freedom of navigation in the body of water. The 1982 United Nations Convention on the Law of the Sea (UNCLOS) was forged by states precisely to prevent any single state from controlling important sea lanes and to protect the interests of archipelagic nations like the Philippines.

As some military strategist would say, the game of war begins in the minds of men and women. If the beginning position of players, even before the “game” is played, is that “we are weak” and “we will lose,” then the game need not be played at all since the outcome is a foregone conclusion. The policy makers and political leaders must formulate a truly independent foreign policy, one that upholds the proud legacy of freedom and independence of the Filipino people, and one that promotes its commitment to the community of nations under a rule of law. Nothing less is acceptable.

 

Jennifer Santiago Oreta is a faculty member of the Department of Political Science, and the Director of the Ateneo Initiative for Southeast Asian Studies of the Ateneo de Manila University.

The next Speaker

In my column of June 11, I asked: Are the current aspirants for Speaker of the House of Representatives of the 18th Congress men of gravitas? Are they presidential timber like a number of previous speakers? Or are they lightweights who can be pushed over the top like Pantaleon Alvarez, who is again an aspirant for the Speakership?

At that time there were five aspirants for Speaker: Messrs. Alvarez, Alan Peter Cayetano, Lord Allan Velasco, Martin Romualdez, and Aurelio Gonzales. It looks like Mr. Gonzales has dropped out of the race since then, but last week Davao City Representative Isidro Ungab was endorsed for the position by Davao City Mayor Sara Duterte’s party Hugpong ng Pagbabago.

The Speakership is a position of power. The Speaker is the presiding officer of the House of Representatives. His duties and powers are as follows:

• Prepare the legislative agenda for every regular session, establish systems and procedures to ensure full deliberation and swift approval of measures included therein;

• Conduct regular monthly caucuses of all members or groups thereof or as often as may be necessary to discuss priority measures and to facilitate dialogue, consensus and action on issues and concerns affecting the House and the performance of its functions;

• Exercise general supervision over all committees and, in furtherance thereof, conduct regular monthly meetings with the chairpersons and vice-chairpersons of all standing and special committees to set legislative targets, review performance in the attainment of targets, ensure that the priority legislative measures of committees are attuned to the legislative agenda of the House, and resolve such other issues and concerns that affect the operations and performance of the committees.

To be able to perform those duties, the speaker must be a person of gravitas. He must be a man of accomplishments of national significance. He must have displayed traits of leadership. He must have had a long and substantive stint in the House of Representatives. He must have a sizable number of congressmen as loyal supporters. He must have the full backing of the president.

Who among the aspirants are such men?

Mr. Alvarez has been speaker before. But all he had working for him to become speaker of the 17th Congress was the endorsement of the then newly elected president, Rodrigo Duterte, his provincemate and long-time friend. Prior to being elected to the House of Representatives, he was in the private practice of law.

He became an action officer at the Manila International Airport Authority (MIAA) in 1987 and rose to chief operating officer of MIAA in March 1995. He was elected representative of the 1st District of Davao del Norte in 1998. In January 2001, President Gloria Macapagal Arroyo appointed him acting Secretary of Transportation and Communications, where he served until July 2002.

Many political pundits have said that other than having close ties with the President, Mr. Alvarez was poorly suited for the position of Speaker. That is why when President Duterte’s daughter, Davao City Mayor Sara Duterte, turned against him, Mr. Alvarez was ousted from the Speakership.

Alan Peter Cayetano, son of Senator Renato Cayetano, is a two-term senator and three-term congressman. He was first elected representative of the lone district of Taguig-Pateros in 1998 and re-elected in 2001 and 2004. He was at one time or another assistant majority leader, deputy majority leader, and senior deputy minority leader in the House of Representatives.

He gained national prominence when he led the move to impeach President Arroyo for attempting to tamper with the results of the 2004 presidential election. He engaged the House stalwart Luis Villafuerte, a rabid supporter of President Arroyo, in a debate wherein each put on an impressive display of their knowledge of the law as they alternately cited the law in support of each other’s proposition.

Barred from running for a fourth term, Cayetano ran for the Senate in 2007 and won. He chaired the high profile Blue Ribbon Committee during his first term in the Senate, enhancing his national prominence by heading the investigation of the scandalous NBN-ZTE deal and the Fertilizer Scam. He was re-elected to the Senate in 2010. He was the Senate Minority Floor Leader in 2010. He again captured the attention of the nation in 2015 when he initiated the Senate investigation of the charge of graft and corruption against then Vice-President Jejomar Binay and his son Makati Mayor Junjun Binay.

It can be said that Mr. Cayetano has the gravitas. He must have felt he had the stature to be vice-president. Thus, barred from running for a third term in the Senate, he made a bid for the vice-presidency in 2016, running in the ticket of presidential candidate Rodrigo Duterte. He lost, his first defeat in his political career.

That was the start of his fall. On his prodding, President Duterte named him Secretary of Foreign Affairs in 2017, a position he was not qualified for. His political stock crashed as he allowed himself to be no more than the voice of President Duterte’s pro-China foreign policy, a policy not accepted by the citizenry.

Not only has Mr. Cayetano’s gravitas diminished, if not disintegrated, he does not have many allies among his colleagues in the House, having alienated many of them during his stints in both houses of Congress. He does not enjoy the open support of his own party, the Nacionalista Party, and, from all indications, neither does he enjoy the support of President Duterte. How many times had Mr. Duterte expressed during his campaign for the presidency and during his state visit to China a preference for Bongbong Marcos as his vice-president over his own vice-presidential running mate Alan Peter Cayetano?

According to Congressman Cayetano, Mr. Duterte had proposed a term-sharing arrangement by which Mr. Cayetano holds the position of Speaker for a year and a half, then PDP-Laban’s nominee Lord Allan Velasco takes over for the remainder of the 18th Congress. However, Mr. Velasco was supposed to have rejected the President’s proposal.

Nobody dares to go against the wishes of President Duterte, not the lightweight member of the House of Representatives Velasco. If the term-sharing deal is off, that means that is the wish of the President, not Congressman Velasco.

Speaking of Mr. Velasco, he was first elected representative of the lone district of Marinduque in 2010. He ran for re-election in 2013 but was defeated by Regina Ongsiako Reyes, daughter of the governor of the province, Carmencita Reyes. However, he was proclaimed the representative of Marinduque on Feb. 1, 2016 after the House Electoral Tribunal removed Ms. Reyes from her seat for being an American citizen.

The fact is, the people of Marinduque preferred the scion of the province’s political dynasty over the son of retired Supreme Court justice Presbitero Velasco. If it were not for a technicality, Lord Allan would not even be in Congress.

Martin Romualdez was representative of the 1st District of Leyte from 2007 to 2016. Barred from seeking re-election for a fourth term, he ran for the Senate in 2016 but lost.

He is the national president of the Lakas-Christian Muslim Democrats, the political party founded in 1992 by then-Defense Secretary Fidel Ramos and which later merged with Kampi of then Vice-President Gloria Macapagal Arroyo. He is the son of the late Benjamin Romualdez, better known as the younger brother of Imelda Marcos. All he has going for him is the connection to the Marcos family.

Isidro Ungab was elected representative of the 3rd district of Davao City in 2007, re-elected in 2010 and in 2013. Before that he had worked as an economic analyst, account officer, development bank manager, and as a consultant to various financial institutions. He has the distinction of the only four-term congressman. I can’t find the explanation on how that happened. He has the backing of presidential daughter Sara. How much weight that carries will be known only on July 22.

Party-list Pwersa ng Bayang Atleta Representative Jericho Nograles says the race for Speaker has come down to Mr. Velasco and Mr. Romualdez. He should know as he is a relative of President Duterte. Albay Representative Joey Salceda and Anak Kalusugan Representative Mike Defensor, like Mr. Romualdez both political lieutenants of Ms. Macapagal Arroyo when she was president, say Representative Romualdez has the Speakership in the bag as 304 members of the House have pledged their votes for him. It takes at least 153 votes to get elected. They must be the votes of members of the House allied with Mrs. Marcos and Ms. Arroyo. Again, how much influence the two ladies, now both out of power and outside Congress, have will also be known on July 22.

Well, whoever gets elected Speaker among the aspirants he would not be his own man but the fair-haired boy of a powerful person. He is a lightweight, a pushover, in the eyes of the general membership of the House of Representatives vulnerable to the schemes of trapos in the House.

 

Oscar P. Lagman, Jr. is a retired corporate executive, business consultant, and management professor. He has been a politicized citizen since his college days in the late 1950s.

Next critical step in corporate governance reforms in the Philippine publicly-held companies sector

MANY of the corporate governance (CG) reforms pursued by the Securities and Exchange Commission (SEC) through its CG Codes seek to usher a system of professional directorship into the publicly held companies (PHCs) and publicly listed companies (PLCs). This includes a system of professional directorship, such as granting more supervisory power to the Boards over its composition, and integrity (i.e., qualifications and disqualifications), as well as the competence and diversity of talents and skills of their members, effecting a system of discipline over their members, and providing for competitive levels of remuneration.

We have discussed how the “comply and explain approach” to CG reforms pursued under the CG Code for PLCs has much theoretical merit since it relies upon the disciplining effect of the market to change the behavior of Boards of PLCs to adopt the CG reforms recommended by the Code. We have pointed how the “disciplining effect of the market” may prove illusory in the current state of our PLCs where the public investors really constitute a minority of the so-called “market” which is in fact dominated by majority or controlling stockholders.

We have seen from the discussions the fact that the “mandatory rules-based approach” of the Original and Revised CG Codes can provide a more efficient means to pursue CG reforms in certain critical areas, where the “comply and explain approach” of the CG Code for PLCs would fall short.

In the realm of the proper composition of the Boards of Directors of PHCs and PLCs, there is now universal acknowledgement that there is a need to pursue gender diversity. The SEC, therefore, in the exercise of its quasi-legislative powers, may provide mandatory provisions for gender representation in the Boards, instead of recommending that it would be the Boards themselves that would promote such diversity. That set-up would then provide the Boards the “subsidiary legislation” upon which to actively pursue such Board diversity reforms without their business judgment being challenged by sectors that wish to maintain the status quo.

In the realm of qualifications and disqualifications of directors and officers, there is a universally accepted system of mandatory rules regarding the integrity of directors and senior officers of companies vested with public interests, as can be easily shown by the comparison of the rules of qualifications and disqualifications provided in the Bangko Sentral ng Pilipinas (BSP) CG Circulars, the Insurance Commission (IC) CG Code, and SEC’s Original and Revised CG Codes. Therefore, rather than the present “comply or explain approach” provided for in the CG Code for PLCs that sets general principles of qualifications and disqualification, it should be expected that the SEC should, by the exercise of its quasi-legislative powers, provide specific rules of further qualifications and disqualifications for directors and senior officers that are clearly of universal application to PHCs, and recommend to the Boards further qualifications and disqualifications that may be adopted that would be particular to their industries. The difference between rules-based qualifications and disqualifications from Board adopted-qualifications and disqualifications has a significant legal consequences.

When a clear set of qualifications and disqualifications is set by the SEC through its rules-making powers, the effect is that they have the force and effect of law. Therefore, the Boards of Directors of PHCs are, in fact, duty bound to enforce them, and with the proper exercise of procedural due process, they can disqualify nominees who do not meet such statutory criteria, or declare the termination from office of incumbent directors or senior officers who are disqualified under the rules of the SEC. In contrast, when the Boards seek to enforce a system of qualification or disqualification based on guidelines drawn by themselves, even when the power to draw such guidelines have been granted by SEC rules, the process of enforcing them upon nominees or incumbents would find itself being covered in the realm of “removal from office,” which is fraught with legal landmines provided under the current CG provisions of the Corporation Code. In short, locating a system of qualifications and disqualification within the rule-making powers of the SEC effectively isolates the enforcement thereof by the Board from the realm of “removal from office.”

Finally, we have also seen from the discussions the legal truism that there are areas where the exercise by SEC of its quasi-legislative powers cannot simply overcome remaining obstacles to see a fruition of the CG reforms. One such area would be amending the provisions of the Securities Regulation Code that would increase further the composition of independent directors that would balance the interests of the controlling shareholders and the investing public in PHCs. Another areas would be amending the provisions of the Corporation Code to change the paradigm from “Directors are not generally compensable for their services as such,” to one that allows performance-based compensation for directors who serve with competence and effectiveness.

We conclude with the note that a more vigorous scheme may have to be pursued in CG reform movement to usher into the Philippine public system a professional system of directorship. There is much work to be done in this area.

The article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or the MAP

 

Dean Cesar L. Villanueva is Chair of the MAP Corporate Governance Committee, Founding Partner of the Villanueva Gabionza & Dy Law Offices, and former Chair of the Governance Commission for GOCCs.

cvillanueva@vgslaw.com

map@map.org.ph

http://map.org.ph

Inflation and TNVS costs

The Philippine Statistics Authority (PSA) has reported that the country’s lowest inflation rate this year and last year, or over the span of 18 months, was 2.7% in June. This is indeed good news and can be traced to two major factors.

One, lower world oil prices. The WTI (West Texas Intermediate) June average price was only $54.7 a barrel vs. April’s $63.9 and May’s $60.8 a barrel. Two, the implementation of the Rice Tariffication Law (RTL, RA 11203) where the quantitative restriction (QR) over rice was removed and larger supply of cheaper imported rice from our neighbors came in.

Still, the Philippines has the highest inflation rate among more mature East Asian economies year to date 2019 where six of the 11 economies listed have inflation rate of below 1% (see Table 1).

China is feeling the pinch this year thanks to its trade conflict with the US — its inflation rate was rising consistently from 1.5% in February to 2.7% in May.

I checked the monthly inflation rate by commodity groups and compared the Philippines’ numbers with those of the National Capital Region (NCR). Of the 11 groups, eight have similar country and NCR values, but three groups diverge or look like outliers. These are Alcoholic Beverages and Tobacco (ABT), Transport, and Education. The difference between NCR and Philippine inflation is derived in Table 2.

Let me focus on the higher inflation for Transportation in the NCR vs Philippines overall, in relation to the transportation network vehicle service (TNVS) “strike” yesterday due to the more costly restrictions of the Land Transportation Franchising and Regulatory Board (LTFRB),

The inefficient public transport system in the NCR and other big cities in the country force many people who do not want the inconvenience of taking multiple rides from house to work, grocery or school and back, to drive their own cars or motorcycles. Which further worsens traffic congestion.

The alternative to driving one’s own car or motorcycle in heavy traffic (then endure the difficulty of finding often expensive parking) is to take a taxi or TNVS. Most car owners prefer TNVS than taxis because of transparency, safety, and tech-based convenience. When there are not enough TNVS around, the waiting time and fare go up, which contributes to high transport inflation in NCR.

Beyond the low world oil prices, RTL, reducing interest rates or certain taxes, there are administrative measures that can help bring down inflation. In this case, the LTFRB should expand, not restrict, the supply of TNVS, taxis, and buses with deregulated routes and fares. More competition will bring down public transport costs, and more people will leave their cars or motorcycles at home on weekdays.

 

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

minimalgovernment@gmail.com

Gilas Youth ends up 14th at FIBA U19 World Cup

By Michael Angelo S. Murillo
Senior Reporter

WHAT was a rough campaign at the FIBA Basketball Under-19 World Cup in Greece for Gilas Pilipinas Youth came to an end on Sunday with the team finishing in 14th place in the 16-team field.

Played undermanned for much of the tournament after key cog AJ Edu came down with a campaign-ending knee injury in their first game, the Philippine youth team still showed grit and determination to make things happen for the rest of the tournament, which was eventually topped by the United States.

Gilas Youth had a chance to finish a rung higher at 13th but it was not able to hold off a ferocious charge in the end by New Zealand as it slumped to the 76-70 defeat on Sunday.

Carl Tamayo finished with a double-double for the Philippines with 24 points and 12 rebounds with Dalph Panopio and Dave Ildefonso adding 16 points apiece.

Kai Sotto finished with eight points, eight rebounds, two steals and two blocks.

Their efforts, however, were not enough to stop the Tall Blacks from coming from behind and snatching the win.

All in all, the Philippines wound up with a 1-6 record in the weeklong tournament, the third best team from Asia behind Australia and New Zealand, which finished ninth and 13th, respectively.

The lone victory of Gilas Youth came at the expense of China on Saturday, 86-72.

Ildefonso led all scorers for the Philippines with a tournament average of 16.6 points, ninth in the tournament. He also collared 5.4 rebounds and dished out 3.7 assists per game.

Tamayo had a slow start but picked things up as the tournament progressed to tally norms of 12.3 points and 6.1 rebounds while Sotto averaged 11.7 points, 7.9 rebounds, two assists and 3.1 blocks per match.

As a team, the Sandy Arespacochaga-coached Gilas Youth averaged the least number of points with 68.7 points per contest, 15th in rebound (39.1 boards), 15th in assists (15.7 dimes), fifth in blocks (4.9 swats) and 12th in steals (6.1 swipes).

It ended in the top 10 of the most turnover-prone teams, eighth with 16.4 miscues per contest.

US TOURNAMENT CHAMP
Meanwhile, the United States topped the U19 World Cup for the seventh time after defeating tournament surprise Mali, 93-79, in the finals.

Cade Cunningham collected 21 points to pace five US players in double figures as they added the 2019 crown to their extensive collection, which includes titles from 1979, 1983, 1991, 2009, 2013 and 2015.

Ending up in third is France, which defeated Lithuania, 73-68.

The most valuable player of the tournament award went to Reggie Perry of the US and he was joined on the All-Star Five by his teammate Tyrese Haliburton, Oumar Ballo and Siriman Kanoute of Mali and Joel Ayayi of France.

The final ranking of the tournament is as follows: US, Mali, France, Lithuania, Russia, Puerto Rico, Serbia, Canada, Australia, Greece, Argentina, Latvia, New Zealand, the Philippines, Senegal and China.

US takes fourth World Cup title

LYON, FRANCE — The United States won a record-extending fourth women’s World Cup with a 2-0 victory over the Netherlands on Sunday as second-half goals from Megan Rapinoe and Rose Lavelle confirmed their status as the leading power in the women’s game.

The defending champions struggled to gain dominance for an hour before a Rapinoe penalty, her sixth goal of the tournament, broke the deadlock and a fine individual effort from Lavelle in the 69th minute put the outcome beyond doubt.

The Dutch, who are the European champions, ran out of steam after Rapinoe opened the scoring in the 61st minute, having done more than any team to frustrate the Americans.

A perfect occasion for Rapinoe, whose outspoken views have been most prominent on the pay disparity between men and women players, was capped when FIFA chief Gianni Infantino was booed amid chants of “equal pay, equal pay” by US fans.

At 34, Rapinoe is unlikely to be back on this stage in four years’ time, but it is hard to imagine her walking away from the battles she has led with the US Soccer Federation and world governing body FIFA over fairer terms for the women’s game.

However, amidst the firework celebrations after the final whistle, Rapinoe’s thoughts were on her team’s triumph — their second in a row after the 2015 victory in Canada.

“It’s like history. I don’t know how to feel right now. It is ridiculous,” said Rapinoe.

“We’re crazy that’s what makes us special. We just have no quit in us. We are so tight. We will do anything to win.”

Rapinoe’s earlier comments, regarding a rejection of any eventual invite to the White House, brought her into the centre of political debate but the side’s win was greeted positively by President Donald Trump.

“Congratulations to the US Women’s Soccer Team on winning the World Cup! Great and exciting play. America is proud of you all!” tweeted Trump.

New York city mayor Bill de Blasio said the team would receive a “ticker tape parade” down the ‘Canyon of Heroes” in Manhattan on Wednesday.

RAPINOE RETURNS
The purple-haired Rapinoe was back in the starting lineup after sitting out the 2-1 semifinal win over England with a slight muscle strain.

Her place in the side came at the expense of Christen Press while Netherlands left-winger Lieke Martens was fit to play after overcoming a toe injury.

The Dutch made an aggressive start, with some strong challenges, and midfielder Sherida Spitse picked up a booking in the 10th minute for a lunging challenge on Lavelle.

The US, who had scored in the opening 12 minutes of every previous game at this tournament, were struggling to settle as their opponents harried and closed them down quickly.

The Netherlands looked to hit the Americans on the counter-attack and that approach almost bore fruit in the 26th minute when Vivianne Miedema released Lineth Beerensteyn through the middle but US keeper Alyssa Naeher was alert.

However, as the half wore on, the US gradually gained the upper hand and Dutch keeper Sari van Veenendaal did well to parry a fierce first-time drive by Julie Ertz in the 28th.

Then Alex Morgan turned a low cross from Rapinoe goalwards and Van Veenendaal tipped the ball against the post before safely gathering it.

The pressure was mounting as Morgan brought the Dutch keeper into action again with a fine shot on the turn in the 40th.

US defender Kelley O’Hara had to be substituted at halftime, following a clash of heads with Martens, and Ali Krieger came on at right-back.

VAR PENALTY
Encouraged by their first half resilience, the Dutch stuck with the same tenacious approach after the break but their aggression proved to be their downfall.

Stefanie van der Gragt’s foot caught Morgan’s upper arm after a high challenge in the box and the American fell to the ground. After initially awarding a corner, the French referee turned to the video review VAR (video assistant referee) and then gave a penalty.

Rapinoe took the responsibility and coolly slotted the ball past the almost stationary Van Veenendaal to bring to life the large American contingent in the capacity crowd of 57,900.

Suddenly the US were more relaxed and the Dutch appeared to lose not only their cohesion but also their energy.

Perhaps sensing that dip, Lavelle took the game directly to the Dutch — bursting out of midfield towards the heart of the defence and dropping her shoulder to the left before unleashing a sweet shot into the bottom corner to make it 2-0.

The Americans were suddenly swarming all over the Dutch, Tobin Heath, Morgan and Crystal Dunn all threatened to add a third goal.

If the Dutch were going to get back into the game a set-piece looked the most likely route and Spitse went close with a free-kick in the 80th minute that flashed just wide.

But that was their last attempt at making a comeback that, in truth, never looked likely.

The Americans had outlasted the Dutch and a fourth World Cup crown was theirs to celebrate with their adoring fans. — Reuters

Mendiola finally barges into PFL win column

AFTER six tries, Mendiola FC 1991 finally barged into the win column of the ongoing Philippines Football League season, beating Philippine Air Force FC, 3-1, in their battle of winless teams on Sunday at the Biñan Football Stadium in Laguna.

Came out with a sense of urgency to begin the game, Mendiola sustained such mindset throughout to outsteady and outlast Air Force and bag the victory that improved it to 1-1-4 record and four points for the season.

Hamed Hajihmahdi put Mendiola on the scoreboard early in the match, scoring a goal inside the first three minutes.

They tried to build on it but no more goals would come for the rest of the opening half, leaving Mendiola settling for a 1-nil lead at the halfway point.

Mendiola kept the pressure on the Airmen to begin the second half, eventually rewarded in the 58th minute when Allen Angeles connected to push his team ahead, 2-0.

The team scored another goal 10 minutes later care of Jim Flores to make it 3-0 in the final 20 minutes of the match.

Air Force still tried to claw its way back and was able to narrow the gap at 3-1 after Romeo Martinez broke through in the 86th minute.

The count stood that way for the rest of the time though, handing Mendiola the win.

With the victory, Mendiola climbed to fifth in the standings while keeping Air Force (0-1-6) as the lone winless team right now in the PFL.

Kaya FC-Iloilo (5-1-0) remains on top of the heap with 16 points, followed by defending champion Ceres-Negros FC (4-1-0) with 13.

Stallion Laguna FC (3-2-1) is third with 11 points while Green Archers United FC (3-2-2) is fourth with 11 points.

Global Cebu FC (1-0-4) is sixth with three points. — Michael Angelo S. Murillo

KAPA founder, other officials face 8 counts of estafa complaint

THE NATIONAL Bureau of Investigation (NBI) and three investors of Kapa-Community Ministry International, Inc. (KAPA) filed eight counts of syndicated estafa complaint against the group’s 14 officials, including its founder, Joel A. Apolinario, in connection with its alleged investment scam.

In the complaint, the NBI and the three investors also charged Mr. Apolinario, KAPA Corporate Secretary Reyna L. Apolinario, Treasurer Modie S. Dagala, and officers Benigno D. Tipan, Jr., Marilyn M. Maturan, Ricky A. Taer, and Margie A. Danao, for violating provisions of the Securities Regulation Code (SRC).

KAPA incorporators included in the complaint are Nonita S. Urbano, Junnie G. Apolinario, Nelio V. Nino, Maria Pella B. Sevilla, Jouelyn A. Del Castillo, Cristobal R. Barabad, and Joji A. Jusay.

The three investors claimed they put in a total amount of P575,000 to KAPA with the promise of 30% return of the principal.

When they heard news that KAPA operations were illegal, they tried to reclaim their investment, but to no avail as the company’s offices were already closed.

The complainants said KAPA committed syndicated estafa under Presidential Decree No. 1689 for posing that the collection from the public is a religious donation and the investment interest is a religious blessing.

They also said that the group is involved in a “pyramiding investment scam which has a characteristic of a Ponzi Scheme” as the “donations” made with a promise of monthly interest of 30% is a solicitation of money or investment from the public.

“(K)APA has employed deceit through false pretense and fraudulent acts,” the complaint read.

The complaint also accuses KAPA of violating Section 8 (Requirement of Registration of Securities) and Section 26 (Fraudulent Transactions) of the SRC as the investment scheme is in the nature of securities, for which the company has no license from the Securities and Exchange Commission (SEC).

This is the second complaint against KAPA, following the SEC’s complaint filed last month against the organization, Mr. Apolinario and seven other officials, also for violation of Sections 8, 26 and 28 of the SRC.

The Commission in February issued a cease-and-desist order against KAPA and revoked its certificate of registration last April. It also secured a freeze order of KAPA’s assets and bank accounts from the Court of Appeals.

A Davao City court has issued a precautionary hold departure order against the eight KAPA officials in the SEC complaint while preliminary investigation is on-going. — Vann Marlo M. Villegas

Brazil wins ninth Copa America

RIO DE JANEIRO — Brazil’s Gabriel Jesus made one goal, scored another and was sent off in the second half as they beat Peru 3-1 on Sunday to win the Copa America for the ninth time in a pulsating contest at the Maracana stadium.

The hosts took the lead after 15 minutes thanks to some brilliant skill from Jesus on the wing. The Manchester City forward bamboozled two defenders and crossed for the unmarked Everton to fire home from close range.

Peru, who last won the tournament in 1975, got an equalizer a minute before halftime when Paolo Guerrero scored from the penalty spot after Thiago Silva handled the ball.

The goal was the first Brazil had conceded in six games at the Copa America but it did not shake their confidence and they retook the lead moments later after a well-worked move from midfield. — Reuters

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