Nation at a Glance — (09/11/18)
News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.
Peso weakens to fresh trough on positive US data, trade tensions
THE PESO slumped to a fresh 12-year low against the dollar on Monday due to upbeat labor data in the United States and concerns on the escalating trade spat between Washington and Beijing.
The peso ended Monday’s session at P53.88 versus the greenback, 15 centavos weaker than the P53.73-per-dollar finish last week.
This was the peso’s worst close in nearly 13 years since it closed at P53.985 per dollar on Dec. 7, 2005.
The peso traded weaker the whole session, opening at P53.79 against the US unit. It slipped to as low as P53.92, while its intraday high stood at P53.77 versus the dollar.
Trading volume dropped to $434.9 million from the $956.9 million that exchanged hands the previous session.
A foreign exchange trader said in an e-mail that the peso declined to a fresh low “amid stronger-than-expected US labor data last Friday.”
The US economy added 201,000 jobs in August, the Bureau of Labor Statistics reported Friday. This was more than the 191,000 jobs expected in a Reuters poll.
Meanwhile, the unemployment rate was held near a generational low of 3.9%.
Ruben Carlo O. Asuncion, market economist at Union Bank of the Philippines, said the dollar “has strengthened due to US wage gains.”
“The market is also weighing in on the prospect of further escalation of the US trade war with China,” he added in a mobile phone message.
US President Donald J. Trump warned aboard the Air Force One on Friday that he is ready to slap tariffs on another $267 billion worth of Chinese imports on top of the $200 billion which will be imposed soon.
“The $200 billion we are talking about could take place very soon depending on what happens with them,” Mr. Trump said. “And I hate to say this, but behind that is another $267 billion ready to go on short notice if I want.”
Despite numerous rounds of negotiations, the world’s two largest economies have slapped $50 billion worth of tariffs on each other’s imports since July.
“The peso weakened to a new record low amid…heightened fears on US-China trade tensions following the new US tariffs on Chinese goods,” the trader added.
For Tuesday, Mr. Asuncion expects the peso to move between P53.70 and P53.90 versus the dollar, while the trader gave a P53.80-P54 range. — Karl Angelo N. Vidal with Reuters
PHL shares end flat as investors pick up bargains
SHARES opened the week on a flattish note as investors went bargain hunting, while some were still reeling from last week’s news, particularly the faster-than-expected inflation print and the US’ threat of more tariffs on Chinese products.
The bellwether Philippine Stock Exchange index (PSEi) slipped by 0.03% or 2.49 points on Monday to close the session at 7,596.15.
The broader all-shares index also lost 0.33% or 15.71 points to end at 4,640.71.
“Philippine shares began the Monday morning with another hit carrying over from last week after President Donald Trump said the US had tariffs ready to go on another $267 billion in Chinese goods, on top of tariffs on $200 billion widely expected to happen,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message on Monday.
Amid such news, US stocks closed lower Friday to retreat for the week, with the S&P 500 and the Nasdaq declining for a fourth straight session.
“This was on top of overhanging concerns with respect to inflation which keep investors wary as may impede the growth numbers moving forward,” Mr. Limlingan added.
The index went below the 7,500 mark intraday, hitting a low of 7,466.27 for the session.
The analyst however noted that the afternoon session saw investors turning to bargain hunting for selected names that were oversold.
“There may have been some anticipation as it was also announced that President [Rodrigo R.] Duterte plans to address the nation [on Tuesday],” Mr. Limlingan said.
“The blue chip stocks have been oversold and I think that was just taken by some investors as a chance to buy at lower prices,” Timson Securities, Inc. trader Jervin S. de Celis said in a mobile message Monday, September 10.
“While the PSEi remains one of the most expensive indices in Asia, the sell-off due to the inflation data last week and trade rift between the US and China is a bit overdone so market participants bought up the index stocks to finish flat today,” Mr. De Celis said on Monday.
Sectoral indices were divided Monday, September 10. Financials slid 0.62% or 10.64 points to 1,705.77; services fell 0.52% or 8.05 points to 1,517.69; and property lost 0.25% or 9.40 points to close at 3,742.83.
Meanwhile, mining and oil climbed 0.69% or 66.26 points to finish at 9,659.89; industrials went up 0.67% or 75.62 points to 11,319.03; and holding firms added 0.22% or 16.83 points to 7,532.53.
Value turnover amounted to P7.40 billion as 1.44 billion shares changed hands, higher than Friday’s P6.29-billion worth of stocks.
Decliners trumped advancers, 124 to 62, while 55 names were unchanged.
Continuing from last week’s sell-off, net foreign outflows on Monday totalled P852.58 million, although declining from Friday’s net sales worth P1.42 billion. — JCL
San Miguel Holdings parent SMC’s backing needed for Bulacan airport
By Denise A. Valdez
THE Department of Finance (DoF) questioned the financial capacity of San Miguel Holdings Corp., which hopes to build a proposed P735-billion airport in Bulacan as an alternative gateway to the Ninoy Aquino International Airport (NAIA).
In a Senate hearing on Monday, Finance Secretary Carlos G. Dominguez III said San Miguel Holdings, a unit of San Miguel Corp. (SMC), only had total equity of P60 billion in 2016.
“Considering the usual financial mix of 70-30, 70% debt and 30% equity, in a PPP (Public-Private Partnership) project, the construction of the Bulacan airport will require San Miguel Holdings to infuse around P200 billion in equity, which we are not sure is going to happen,” he said.
Mr. Dominguez said the DoF proposed to the Department of Transportation (DoTr) in April — when the project was conditionally approved by the National Economic Development Authority (NEDA) Board because of questions about its financial viability — that SMC throw its financial backing behind the project instead of proponent San Miguel Holdings.
“One of the helpful suggestions we made to the DoTr was to require the execution of a joint and several liability agreement, which should make San Miguel Corp., the parent company, stand behind San Miguel Holdings, the private proponent, which is financially, at this point, incapable of undertaking a P700-billion project,” he said.
This was, however, ignored following input from a representative from the Office of the President, who insisted the project be evaluated based on the financial capacity of the proponent.
In an e-mail to BusinessWorld, SMC said it heeded the proposal of Mr. Dominguez and had asked the DoTr in May to follow such a plan.
“San Miguel Corp. (SMC) agrees with Secretary Dominguez on his position that both SMC and San Miguel Holdings Corp., should undertake a Joint and Several Liability Agreement, for the New Manila International Airport project in Bulacan,” it said.
It added, the plan will be smoothened out when the concession agreement is finalized by the DoTr.
“The final (concession agreement) will form the basis of what SMC will be guaranteeing and (be) jointly liable for,” it said.
SMC also announced last week it enlisted Standard Chartered Bank and Sumitomo Mitsui Banking Corp. as co-financial advisors for the airport project.
Mr. Dominguez noted while negotiations on the concession terms between San Miguel Holdings and the DoTr are still ongoing, he is weighing the eventual cost to the government.
“The final cost of the airport, including our contingent liabilities, will be what will weigh heavily on us. There is no such thing as free. When they say at no cost to the government, that is not true,” Mr. Dominguez said.
He added, “Our role is to make sure that the contingent liabilities are manageable, that they are reasonable, and that at no point is there going to be a moral hazard that the proponent one day would just say ‘I quit’ and we are going to pay. There is no breach of the principle that nobody enriches himself in a contract.”
Transportation Undersecretary for Planning Ruben S. Reinoso, Jr. said the department is careful in screening for possible contingent liabilities that may be interpreted as a government guarantee in the draft contract.
“Contingent liability, that’s fine. Provided it does not turn into a real liability,” he said.
“We are careful that if we feel this is tantamount to a government guarantee, then we tell them. They have to give us something that we will accept as not a government guarantee.”
Contingent liabilities arise from negative outcomes of uncertain events, such as litigation, and must be provided for if the size of the liability can be reasonably estimated. PPP projects are undertaken without a government guarantee, and the ultimate structure of the Bulacan deal hinges on the government’s reluctance or willingness to take on contingent liabilities which might be construed as an effective guarantee.
Mr. Reinoso said some of the contents of the draft terms stood out, such as the provision on the change in law and material adverse government action.
“What would be the obligation of the government in the (event of a) change in law? What would be the obligation of the proponent?… We have to clarify the conditions for the change in law that would warrant government obligations,” he said.
He added San Miguel Holdings committed to submit by Friday a new draft of the concession terms, which the government will review with the proponent next week.
After the concession terms are approved by the DoTr, the project will be raised to the NEDA Board and an inter-agency committee for another round of evaluation.
Once NEDA Board approval is gained, the proposal will be subjected to a Swiss challenge, where other parties may present counter offers that San Miguel Holdings may match.
The proposal of San Miguel Holdings is for the construction, operation and maintenance of a 2,500-hectare airport in Bulacan that will have four to six parallel runways and a capacity of 100 million passengers. It also includes an 8.4-kilometer toll road linked to the Marilao junction of the North Luzon Expressway (NLEx).
DoLE, PBEd’s YouthWorks in training tie-up
THE Philippine Business for Education (PBEd) said it has teamed up with the labor department to create programs that will “enhance the employability” of young people.
The Department of Labor and Employment (DoLE) announced on Monday a tie-up with PBEd in YouthWorks PH which will provide work-based training positions to unemployed young people. The PBEd project is a five-year partnership with the United States Agency for International Development (USAID) backed with more than P1 billion.
PBEd hopes to reform traditional education and training to make graduates more work-ready.
Labor Secretary Silvestre H. Bello said in a statement on Monday, “Our human capital is the key driver in promoting inclusive growth and sustainable economic development in the country, hence, developing work-based training programs for the Filipino youth is vital to prepare them for the world of work.”
Through the Public Employment Services Office (PESO), DoLE will assist beneficiaries in finding available jobs provided by the agency’s partner companies.
Last week, PBEd signed a Memorandum of Agreement (MoA) with the Technical Skills Development Authority (TESDA) in a partnership for YouthWorks PH.
YouthWorks PH was launched in June and will have work-based training sites in Metro Manila, Cebu, Iloilo, Cagayan de Oro, Davao, Zamboanga, and General Santos City. — Gillian M. Cortez
DTI sees Israel, Jordan firms starting work on Philippine deals this year
THE Department of Trade and Industry (DTI) said it expects most deals signed with companies in Israel and Jordan will start to be implemented within the year.
Trade Secretary Ramon M. Lopez said companies that signed agreements with Philippine firms will start working on their tie-ups soon.
“I believe they are all wanting to implement ASAP. I would say most, if not all of them [will pursue] this year,” Mr. Lopez said in a mobile message on Monday.
He said Jordanian logistics firm Nafith International is scheduled to visit the Philippines this month.
Nafith has expressed an interest in locating a regional office in the Philippines and exploring opportunities in the logistics market.
Last week, Philippine companies signed $83 million worth of deals with firms in Israel during President Rodrigo R. Duterte’s three-day visit.
Israeli firms that committed to work with Philippine counterparts included those engaged in advanced energy optimization management; agriculture and urban farming; prefabricated housing; water desalination; and master-planned real estate development projects; defense, intelligence, cybersecurity, and data mining among others.
Companies from Jordan and the Philippines also signed agreements valued at over $60 million. — Janina C. Lim
Bill seeks to allocate 10% of mall space to small firms
A BILL seeking to set aside 10% of mall space for small businesses at no charge has been filed at the House of Representatives.
House Bill 8129, authored by Misamis Oriental Peter M. Unabia, seeks to amend Republic Act 9501, “Magna Carta for Micro, Small, and Medium Enterprises.”
The measure will require “malls and supermarkets to allot at least 10% of their selling area, free of charge, to qualified MSMEs, which will be identified by the Department of Trade and Industry.”
Mr. Unabia said the amendment aims to provide MSMEs more outlets to sell their products.
“It is a simple but intuitive solution to… the problem since both supermarkets and shopping malls are significant centers of commerce,” Mr. Unabia said in the bill’s explanatory note.
Citing a 2016 Philippine Statistics Authority report, Mr. Unabia said 99.57% of about 900,000 companies in the Philippines are MSMEs.
These enterprises also employ 63.3% of the work force.
Nevertheless, MSMEs face disadvantages such as lack of access to markets.
Mr. Unabia said allowing qualified MSMEs to locate in malls and supermarkets will “give them a fighting chance at developing and eventually up-scaling operations.” — Charmaine A. Tadalan
DA questioned over shift to farm credit from subsidies
SENATOR CYNTHIA A. VILLAR questioned the Department of Agriculture’s shift to farm credit from subsidies, saying that the strategy has lost over P8 billion for a previous government.
At a DA budget hearing, Ms. Villar, who chairs the chamber’s agriculture committee, said Secretary Emmanuel F. Piñol’s credit-based system did not succeed during the Arroyo administration.
“We did that before and we lost P8-billion. It was managed by DA and the Cocofund. So we transferred it to LANDBANK. Why are we going to that model?” Ms. Villar told Mr. Piñol.
“I read the mandate of ACPC (Agricultural Credit Policy Council). They are not allowed to give credit. You don’t transfer the money to ACPC, you give it to a bank and make a model how the bank will give it out,” Ms. Villar added.
The Arroyo-era losses stemmed from loan defaults.
“We’re not good at lending out money. ACPC lost P8 billion,” Ms. Villar said.
According to Mr. Piñol, the shift to farm credit was approved by President Rodrigo R. Duterte.
Mr. Piñol said in 2019, the proposed loan fund is P5.1-billion for 74,000 target beneficiaries. He said the DA has reformed the lending system to avoid the mistakes of the past.
“As of last year, the production loan easy access (PLEA) program channeled through cooperatives and rural banks has a repayment rate of 96%. The lending rate of LANDBANK was very low,” Mr. Piñol said, noting that the program started in June 2017.
In a statement on Monday, Land Bank of the Philippines said it has outstanding loans of P39.9 billion issued to fishermen and farmers as of the first half of 2018. Loan releases in the first six months amounted to P26.8-billion, which benefited 274,255 small farmers and fisherforlk.
ACPC Executive Director Jocelyn Alma R. Badiola said the agency is mandated to administer funds and credit lines are open to cooperatives through 163 banks all over the country.
“We are very careful with funds. We have learned our lesson… We are careful in selecting our loan conduits,” Ms. Badiola said.
Ms. Villar also called on Mr. Piñol to explain why the DA reduced the budget for domestic rice procurement to P7 billion from P11 billion previously.
The Department of Budget and Management reduced the DA budget by 10.54% to P49.8-billion in 2019.
Mr. Piñol said that the budget reductions were ordered by the Department of Budget and Management, noting that the DA had proposed P15 billion for rice purchases.
Mr. Piñol added: “In spite of this, we are still projecting that there will be major positive performances” in rice output but still called for a review of the budget amid a shortage of low-cost rice sold by the National Food Authority, which has emboldened sellers of commercial rice to raise their prices.
“We can be rice sufficient, but we have to invest… We have land and abundant sunshine, but we need irrigation,” Mr. Piñol said.
“The fact that we face a problem in food supply warrants a review of the budget,” Mr. Piñol said.
Ms. Villar said the main problem facing farmers was not irrigation but the lack of mechanization.
Meanwhile, Ms. Villar agreed that more funding for rice is needed.
“We will try [to increase the budget] but we are adding it indirectly via the Rice Competitive Enhancement Fund… in effect, we are not touching the budget proper but we are adding in other areas,” Ms. Villar said in a chance interview.
She said that her committee will “try hard” to pass the rice tariffication bill this month to liberalize rice imports. The tariffs generated by importing rice more freely will be applied towards making domestic rice farming more competitive.
Meanwhile, Mr. Piñol said that DA should not be blamed for inflation but rather pointed to tax reform, which has increased fuel prices. — Reicelene Joy N. Ignacio
House passes mobile number portability bill on 3rd reading
THE HOUSE of Representatives on Monday approved on third and final reading a bill allowing mobile phone subscribers to switch networks without changing their numbers.
With 216 affirmative votes, zero negatives and no abstentions, the chamber approved House Bill 7652, “Mobile Number Portability,” which will require all Public Telecommunications Entities (PTEs) to provide subscribers the option to retain their current mobile numbers when changing networks, free of charge.
PTEs will also “set up a mechanism for the implementation of MNP and not to install network features, functions or capabilities that will impede implementation of the nationwide MNP system.”
PTEs also need to ensure the confidentiality of all information obtained, in compliance with the Data Privacy Act of 2012.
The new entity providing telecommunication services is required to activate the subscriber’s ported number within 24 hours.
The old provider, meanwhile, must transmit the notice of clearance to the new provider within 24 hours upon receipt of request for porting.
Penalties for failure to comply with the bill include a fine of P100,000 to P300,000 on first offense; P400,000 to 600,000 on second; and P700,000 to P1 million on third, plus the revocation of the PTE franchise.
Its counterpart measure, Senate Bill 1636, passed on third reading on Feb. 19 and was transmitted to the House of Representatives. — Charmaine A. Tadalan
BIR letter notices: Not enough for a tax assessment
Imagine driving your car on a clear sunny afternoon, when suddenly, you are blocked and signaled to pull over by an apparent traffic enforcer in civilian clothing. To your surprise, he asks for your driver’s license and hands you a ticket for an alleged violation. Not recognizing his authority as a traffic enforcer, you refuse to give your license and question his right to apprehend you. However, he insists. Fortunately, this situation is not likely to happen; but if it does, you can expect it to be unpleasant.
The point in question is the authority of the person telling you that you have violated a rule. From a tax perspective, the issue of authority was tackled in the case of Medicard Philippines, Inc. (Medicard) vs. Commissioner of Internal Revenue (G.R. No. 222743, April 5, 2017), wherein the authority of the Bureau of Internal Revenue (BIR) to assess Medicard was challenged. In this case, the BIR, upon finding discrepancies between Medicard’s income Tax Returns (ITRs) and value-added tax (VAT) Returns for 2006, issued a Letter Notice (LN) to Medicard. Thereafter, without subsequently issuing a 2006 Letter of Authority (LoA), the BIR then issued a Preliminary Assessment Notice (PAN) and Formal Assessment Notice (FAN) against Medicard for an alleged deficiency VAT.
The case went through the rounds until it reached the Supreme Court (SC). The SC pronounced that, as the BIR assessed Medicard by virtue of a mere LN, and not by virtue of an LoA, the BIR’s assessment was void. This SC decision was recently rehashed and highlighted by the BIR in its Revenue Memorandum Circular (RMC) No. 75-2018, which was issued to emphasize the doctrinal rule enunciated by the SC in the Medicard case on the statutory requirement of an LoA.
How does a Letter Notice basically differ from a Letter of Authority?
In issuing an LN, the BIR, in effect, is performing a no-contact-audit. Here, the BIR performs a computerized matching of data from the taxpayer’s submitted tax returns and information. In case the comparison reveals some discrepancies, the taxpayer will be informed by the BIR through a Letter Notice. An LoA, on the other hand, is the authority given to the appropriate revenue officer assigned to perform assessment functions. The LoA empowers or enables the revenue officer to examine the books of account and other accounting records of a taxpayer to collect the correct amount of tax.
The SC, in the Medicard case, and subsequently, the BIR, by issuing RMC 75-2018, recognize that issuing an LN to assess a taxpayer is not valid. No assessments can be issued or no assessment functions or proceedings can be done without the prior approval and authorization of the Commissioner of the BIR or his duly authorized representative through an LoA. The concept of an LoA is therefore clear and unequivocal. Any tax assessment issued without an LoA is a violation of the taxpayer’s right to due process and is therefore “inescapably void.”
Clearly, a revenue officer must be clothed with authority before proceeding with an examination or assessment. The authority must be embodied in an LoA, and not in the form of a mere LN to the taxpayer. An LN is not an authority to conduct an audit or examination of the taxpayer leading to the issuance of deficiency assessments. Due process demands that after an LN has served its purpose, the revenue office should have properly secured an LoA before proceeding with the further examination and assessment of taxpayer.
The key word in RMC 75-2008 is “authority.” The BIR examiners should be properly authorized under the tax rules in order to validly assess a taxpayer. It is also noteworthy that, in the RMC, the BIR stated that, to help forestall any unnecessary controversy and to encourage due observance of judicial pronouncements, any examiner or revenue officer initiating tax assessments or performing assessment functions without an LoA shall be subject to appropriate administrative sanctions. This latter provision would certainly give teeth to the implementation of the issuance.
Thus, unless an LoA is served to the taxpayer, any findings or issues the BIR examiners may find during their audit are not valid, since in the first place, no examination or audit should have happened due to the tax agents’ lack of authority.
It is a welcome development on the part of the taxpayers that the BIR, by issuing RMC 75-2018, is showing its commitment to strictly observe due process in assessment cases. Nonetheless, an LN cannot just be set aside by the taxpayers even if it is not equivalent to an LoA, as the findings in the said LN can be a possible source of a BIR assessment once the BIR issues a subsequent LoA. Knowledge is power. Taxpayers, if armed with the proper knowledge of how to react to the BIR’s assessment procedures, can better prepare for and withstand a future BIR audit.
Jenica Angeles is a senior of the Tax Advisory and Compliance of P&A Grant Thornton.
Jenica.Angeles@ph.gt.com
+63(2) 988-2288
Reduce fares and increase passenger convenience by increasing supply
Economics is the study of proper allocation of limited resources mainly via market mechanism. If there is rising demand for a particular commodity or service, the price goes up as indicator of consumers’ willingness to pay for more services or goods, and this tells existing and potential providers to increase the supply as there is more revenue and profit to be made.
When the supply outstrips the demand due to rising competition, the price begins to flatline or decline, telling producers to stop expanding the supply, otherwise the price will keep declining further and they will lose money and may go bankrupt.
The role of government as regulator and prohibitor in this case should be limited unless a commodity or service can directly and adversely affect public health and safety, like the sale and distribution of guns, ammunitions and bombs, toxic and poisonous substances, and substandard or expired medicines, food and drinks.
When government intervenes and regulates a lot even for very useful services like providing convenient public transportation to people who have no cars or have cars but do not want to drive because of frequent heavy traffic, that is a signal or red flag that government becomes abusive and is engaged in corruption and cronyism, directly or indirectly.
The Land Transportation and Franchising Regulatory Board (LTFRB) is among the most bureaucratic and prohibitionist agencies in government. It issues plenty of NOs, prohibitions and restrictions to entrepreneurs and companies that want to provide convenient and safe rides to the public.
The long lines of people daily in many areas and cities who cannot get fast and convenient rides are the result of LTFRB bureaucratism. The franchise of legal and accredited air-con vans, buses, ride-sharing services is limited and capped or controlled at low levels. This seems a calculated move so that there will be more illegal and “colorum” vans, buses, ride-sharing cars as passenger demand is very high. And that is where lots of apprehensions, driver harassment, corruption and extortion can come in.
Last week, there were two news reports in BusinessWorld about continuing LTFRB bureaucratism of transport network vehicle service (TNVS) or transportation network companies (TNC):
(1) “LTFRB junks order for Grab to reimburse passengers” (Sept. 5), and
(2) “LTFRB approves P2-per-minute TNVS charge” (Sept. 6).
Report #1 is the agency taking back its previous order that Grab should reimburse future passengers but it should still pay the agency P10 million for “overcharging” its passengers and failure to inform the board of its P2-per minute charge.
Report #2 is the agency allowing the per minute charge and ordering TNVS to give detailed and unbundled breakdown of fares — flag down rate, per kilometer rate, travel time rate and surge price.
The P2-per minute charge is an important incentive for drivers to endure heavy traffic or flooded areas and pick up, bring passengers to their destinations.
In a deregulated environment, TNVS should be allowed to charge whatever amount as their per minute charge so long as passengers know their rates via online transactions. So a TNVS can charge P5, P10 per minute or higher — because it is fielding an SUV or a BMW or Benz to passengers who can afford.
I checked the LTFRB budget, the biggest item is on its “service” for issuing the Certificate of Public Convenience (CPC), granting of permits and establishment of routes.
One can interpret it as we taxpayers giving the LTFRB hundreds of millions of pesos yearly so that it can choose who among the entrepreneurs and businesses can expand and who should be choked. We are giving them lots of money so it can harass and even confiscate and impound private property that provide services to wary and harassed passengers but has no accreditation precisely because the agency has capped and limited the number of accredited vehicles to small numbers.
LTFRB bureaucratism seems to be doing the exact opposite of what government should do — to respect private property and allow market mechanism to respond to passengers’ rising and changing demand.
Bienvenido S. Oplas, Jr. is president of Minimal Government Thinkers, a member institute of Economic Freedom Network (EFN) Asia.
minimalgovernment@gmail.com
T for Trouble
President Rodrigo Duterte claimed last Saturday, Sept. 8, that Senator Antonio Trillanes IV is colluding with the Liberal Party (yellows) and the communists (reds) in efforts to topple his government by October. Trillanes, meanwhile, remains camped out in his Senate office as of this writing to avoid arrest following the issuance of Presidential Proclamation 572 (PP572).
President Duterte signed PP572 on Aug. 31 voiding Trillanes’ amnesty which purportedly was invalid from the start because of the latter’s alleged failure to submit an official amnesty application form and admit his guilt over his involvement in the uprisings against former president and now House Speaker Gloria Macapagal-Arroyo. The President’s revelation in Davao prompted the AFP Chief of Staff, Gen. Carlito G Galvez, to issue a forceful statement, to wit:
• The Armed Forces of the Philippines (AFP) submits to the majesty of the Supreme Court (SC) and yields to its wisdom as it tackles the petition filed by Senator Trillanes pertaining to PP 572.
• In deference to the SC that has taken cognizance of the case, we will not anymore comment on its merits as we hope other parties would follow suit.
• Let me belie claims by some quarters of divisiveness or rumblings in the AFP. I assure our people that, as in many times in the past, the AFP will be one and undivided as an organization.
• Let me then, as the AFP Chief of Staff, take this occasion to warn persons who or groups that attempt to divide the AFP by sowing intrigues and discord among its Officers and Enlisted personnel. You will not succeed.
• I am nonetheless reminding every soldier, airman, sailor, and marine not to meddle or take part in partisan politics. Our loyalty is to the Constitution. I command the troops to adhere to the rule of law and always obey the Chain of Command. Violation of these instructions will be dealt with severely; and personnel who will get involved will be immediately relieved from their posts and investigated.
• While I am aware that the troops have individual views on many issues, those merely hallmark an intelligent and matured organization like the AFP. But we always put the interest of the organization and the nation above our own.
• Finally, I have, as the appointing authority, commissioned the General Court Martial (GCM) that shall continue hearing the case of the erstwhile Navy Lieutenant Trillanes IV. When the GCM resumes, it shall proceed from where it stopped in its proceedings when Presidential Proclamation 75 was signed.
• The proceedings, however, will be held in abeyance until the SC has ruled on the merits of PP572.
The way I see it, from what has been reported about Senator Trillanes and the way he has conducted himself publicly through the years, he does come across as a cocky obnoxious Manchurian candidate, someone controlled by foreign and local principals to divide institutions and society, so that they can rule us. We should research whose bidding he did that for; for how much; and at what cost to the nation given all his malicious machinations, misadventures and miscalculations?
His fellow PMA cavaliers have spoken out against him. My estimate is that the Senate and the House would have a low opinion of him as well. If a survey was done today to gauge the extent of society’s support for him, I believe he’d receive low marks too. Social media circles spew fire and brimstone against his outlandish claims and calumny. He didn’t fool BBC’s Stephen Sakur, that’s for sure, who unmasked him for what he really is — fraudulent.
Now comes the issue of amnesty. He insists he was granted that. But wasn’t the process improperly executed to begin with and did he actually fulfill all of the requirements? Here’s someone whose shattered credibility and integrity as mutineer, coup plotter, backchannel and oppositionist, wants us to believe him one more time.
On Jan. 5, 2011 GMA News Online reported Trillanes’ “general admission of guilt” for violating military rules and the Revised Penal Code (RPC). Despite the admission, he said he never regretted participating in the 2003 mutiny where some 300 “Magdalo” rebels took over the Oakwood Hotel in Makati to air their grievances against the Arroyo administration. He says they never denied what he described was “something out of the ordinary.” While admitting to “violating some rules,” they did not own up to the mutiny and coup d’etat charges lodged against them in civil and military courts.
Let’s see where all this will lead us to. But for now, the uncertainty is destabilizing the business climate. Investors are on neutral mode to wait out the fluid situation. Both friend and foe say the President isn’t helping the situation any. As a friend, I’ll stick my neck out to express my thoughts on mitigating risk.
1. Less talk, less mistake.
2. Insist on timely, accurate and thorough info to make informed decisions.
3. Avoid rash decisions or speaking in public when you’re angry.
4. You’re on the global stage. Anything you say or do could be used against you.
5. Insist on strategy-based performance and results from well selected teams.
6. Appoint new whips if incumbents are not up to the job to carry out your intent.
7. Clean up the stables of those unfit to serve and hire professionals to help you.
8. Choose your battles, don’t overextend.
9. Win the war on crime and corruption with criminal justice system reform.
10. Threats to quit demoralizes society and emboldens its enemies.
11. You’re damned, right or wrong. Just do what’s right and do it the right way.
Mr. President, your enemies want you out of Malacañang on or before the end of this year. That, plus your threats to quit, are destabilizing and deflating. They offer no stability nor clarity, no hope nor solutions to the people’s daily crosses.
Hang tough and let them tighten their own nooses around their necks. Don’t let them wear you down. Rest easy, the AFP-PNP and the people are behind you.
Rafael M. Alunan served in the cabinet of President Corazon C. Aquino as Secretary of Tourism, and in the cabinet of President Fidel V. Ramos as Secretary of Interior and Local Government.
rmalunan@gmail.com
map@map.org.ph
http://map.org.ph