PHL obtains China commitment to maximize Filipino workers in building projects

May 6, 2019 | 9:52 pm

THE Department of Transportation (DoTr) said the government has obtained an undertaking from China to prioritize Filipino workers in all China-assisted infrastructure projects.

“It was an undertaking by our Chinese counterparts that the workers for all of these, not just in the PNR (Philippine National Railways)-Bicol, but all of our China-ODA (Official Development Assistance) funded projects will be Filipinos and this is why we are establishing a training facility upfront,” said DoTr Undersecretary for Railways Timothy John R. Batan during the oversight committee hearing on the agency’s expenditures Monday.

Mr. Batan said that the agreement was made during the recent visit of President Rodrigo R. Duterte and other government officials, including Transportation Secretary Arthur P. Tugade, to Beijing for the Second Belt and Road Forum for International Cooperation.

The projects funded by China through official development assistance are the Philippine National Railway (PNR) line to Bicol, the Subic-Clark Railway Project, and the Mindanao Railway Project.

During the Beijing meeting, Mr. Batan said that a training school for construction workers will be established in Bicol to “speed up” the construction of the railway project.

“It was agreed with our Chinese counterparts that in order for us to speed up the construction… we will be establishing a training school for our construction workers and our local workers will be working on the project,” said Mr. Batan.

He also noted that the Chinese government will only bring Chinese nationals to work on the “highly-technical” requirements of the projects.

“They will be only be bringing Chinese nationals for the highly technical requirements of the projects and they will pay taxes accordingly,” said Mr. Batan.

The agreement for the P175 billion railway development project was signed in November and aims to cut the travel time from Manila to Bicol to under five hours from the usual 13 hours by road. — Vince Angelo C. Ferreras

Microgrid Systems bill filed in Senate

May 6, 2019 | 9:51 pm

A BILL promoting the development of microgrid systems has been filed at the Senate, with a senior legislator expecting it to help provide power to unserved and underserved areas.

Senator Sherwin T. Gatchalian, who chairs the energy committee, filed Senate Bill No. 2218, or the proposed ”Microgrid Systems Act,” in line with the government objective of 100% household electrification by 2022.

“The government has stated that total electrification in unserved areas cannot be done by traditional grid extension alone and that non-traditional means — such as microgrid systems — are needed. The problem of energy access is also a concern even in ‘electrified’ areas with limited electricity service, or what we call underserved areas,” the senator said in a statement Monday.

“What we will do is to allow proponents to put up microgrids. These microgrids will be self-sustaining, meaning they will be producing as well as distributing power,” he added.

If enacted, the bill will authorize the Department of Energy (DoE) to streamline the process for the competitive selection of Microgrid Systems Providers (MSPs).

The Energy Regulatory Commission, for its part, will he responsible for monitoring all awarded MSPs and exercising its rate making power.

The measure will prohibit any person, natural or juridical, to refuse installation of a microgrid system, impose charges which are not under the agreed rate and awarded MSP contract, prevent a distribution utility from acquiring an MSP system, and not complying with duties and obligations provided under the law.

Violators are subject to imprisonment of two to eight years and fines ranging from P25 million to P100 million.

Senator Gatchalian added that based on DoE data, over 2.77 million households, or 11.7% of the total number of households nationwide, still have no access to electricity.

“If we want to achieve 100% household electrification by 2022, we need to look for other technologies. Let’s improve the process of electrification,” he said. — Charmaine A. Tadalan

Transfer pricing of shared services

May 6, 2019 | 9:50 pm

The continuous globalization of trade has led to an increase in intra-group services. Intra-group services are those provided by one or more entities within a group to other fellow units, or for the benefit of the group as a whole. Such services include administrative, finance, human resources, information technology (IT), management, marketing, procurement, research and development, and technical services, among others.

For commercial reasons and cost efficiency, Multinational Enterprises often choose to centralize certain functions or services through “shared services” or “global in-house centers.”

The application of shared services has been a popular and proven business strategy. Based on the website of the Global In-House Center Council Philippines, the trade association of in-house centers operating within the country represents more than 60 members, predominantly Fortune 500 companies.

One of the definitions of “shared services” is an operational philosophy that involves centralizing those administrative functions of a company or group of companies that were once performed in separate divisions or locations. Back-office functions/services, such as accounting and finance, purchasing, inventory, payroll, hiring, and IT, are normally the kind of services that can be shared among the various business units of a company or group of companies.

The idea of implementing shared services is to improve processes, enable technology investment, generate profits, and reduce costs by standardizing practices and procedures.

For transfer pricing purposes, shared services are generally considered intra-group services that should comply with the arm’s-length principle. It is necessary to determine whether the amount of the charge is in accordance with the principle: the charge for shared services should be that which would have been made and accepted between independent enterprises in comparable circumstances.

DETERMINING AN ARM’S-LENGTH CHARGE
According to Organization for Economic Co-operation and Development (OECD) guidelines, the direct charge method is generally the appropriate approach in determining arm’s-length charging. Through the direct charge method, the associated enterprise is charged for specific services. This approach, though, may not always be appropriate or may be practically difficult to apply. Hence, the use of the indirect method, which relies on estimation and allocation of cost, is acceptable.

A typical example where cost will be allocated is with shared service centers. In this circumstance, the cost allocated to recipients should be based on an appropriate measure of usage such that each service beneficiary bears its fair share of the total cost incurred by the service provider.

What is an acceptable and appropriate measure of usage? The Philippine Tax Code does not provide a hard and fast rule to guide taxpayers in allocating costs. No uniform method of accounting can be prescribed for all taxpayers, and the law contemplates that each taxpayer should adopt such forms and systems according to their best judgement. However, existing rules suggest that costs may be segregated first through specific identification, if possible. Costs that can be segregated through specific identification are the salaries and wages of employees working for a specific function or company, and depreciation, amortization, repairs, and maintenance of assets used for a specific function or company.

If specific identification is not possible, allocation based on relevant data may be used, if applicable.

The allocation of costs is essentially an accounting issue and, given that the law does not expressly provide rules that will govern each situation, the method of allocation adopted should, at best, be one that is reasonable, justifiable, and consistently used. Hence, a method of accounting that reflects the consistent application of generally accepted principles in a particular trade or business in accordance with accepted practices in that trade or business is regarded as accurately reflecting income.

Considering that there is no tax law prescribing the allocation method, any method of allocation may be used, provided that such basis adopted should, at best, be one that is reasonable, justifiable, and consistently used. To be reasonable, the Bureau of Internal Revenue (BIR) suggests that the allocation basis should have a correlation with the costs being allocated.

Typical allocation methods acceptable to the BIR are the proportion of area occupied for rental, utilities, and the number of employees for office supplies and communication.

For transfer pricing purposes, the allocation method chosen must lead to a result that is consistent with what a comparable independent service provider would have been prepared to accept.

Once the method of allocation is chosen, it is necessary to determine the arm’s-length charge and the profit element. The service provider is expected to earn a return (typically in the form of a markup) on the cost of providing the service. To determine what the appropriate return should be, refer to what independent parties charge for a similar transaction. The service provider must conduct a benchmarking study to identify the independent companies providing comparable services, as well as the return that they earn.

After determining through a benchmarking study the arm’s-length markup, the next thing to consider is whether the service provider will adopt a cost-plus markup method or a full cost-plus markup method. The decision will depend on the business strategy of the service provider or the group.

Ideally, the basis for costs should be determined based on the actual costs incurred in rendering the shared services. However, it may be difficult and time-consuming to determine the actual cost incurred. In this case, estimated costs (a close approximation of actual costs) are acceptable. Estimated costs are predetermined or standard costs of performing a service under normal conditions, and are developed from historical data analysis.

Shared service companies or global in-house centers have grown significantly in the Philippines. Our country is seen as an established location for these enterprises. According to a report from the Board of Investment, shared service companies are projected to generate $7.61 billion in revenue by 2022.

As this multi-billion-dollar industry brings positive growth to our economy, the BIR will definitely set its eyes on these enterprises to ensure compliance with transfer pricing rules to avoid tremendous losses of tax revenue for the government.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

Nikkolai F. Canceran is a director from the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com.

The battle for the 12 Senate seats!

May 6, 2019 | 9:47 pm

Come 13 May 2019, 61,843,750 or 57.4% of the total 107,795,964 Philippine people will select among other political positions 12 new senators — it is The Battle for The Twelve Philippine Senate Seats.

Two major forces — the Otso Diresto representing the Opposition and the Hugpong Ng Pagbabago or HNP representing the choice of President Rodrigo Roa Duterte face each other. The former has the usual Liberal Party (or Dilawan) candidates plus new faces focuses on issues. The latter has traditional politicians, some who have been charged in the Pork Barrel Scam, one a daughter of the former dictator, actors and the usual political family names plus two new ones entertaining voters.

Of total voters, 1,822,173 or roughly 2.9% are overseas Filipino workers or OFWs many of whom supported the President in 2016. The 30,026,953 or 48.6% are male while 31,816,797 or 51.4% are female.

Voters in the age bracket 18 to 29 comprise 18,847,230 or 30.5% — the so-called Gen Z; 30 to 44 with 19,911,867 or 32.2% known as the Gen X; 45 to 64 with 17,216,364 or 27.8%; 65 and above with 5,868,289 or 9.8%. Those belonging to the 18 to 35 age bracket (the youth age) are almost 45%.

Catholics in the Philippines comprise 81% of the total population; Protestant Christians, 11%; and Muslims, 6%.

In 2016, the percentage share of number of families in the AB bracket (with an average annual income of P1.86 million) is only 1% but their % share in total income is 9%; the C bracket (P 603K) is 9% with 26% share in total income; D bracket (P 191,000) is 60% with 56% of total income; and E bracket (P62K) is 30%.

The 51.4% women voters weigh in on the continuous anti-feminist proclamations of the President — rape jokes, touching a maid’s private part, and ‘shoot in the vagina’ tirades. Would this be enough to sway them to support 8Diretso or stick with the President’s HNP bets? Anyway they were not the ones raped, touched, nor shot in the vagina?

The 32.2% Gen X and 30.5% Gen Z active in social media are a very powerful bloc. Will they deliver the votes for Otso Diretso for a change or vote without thinking critically for old traditional politicians (some charged with plunder for stealing the peoples’ money) or because they still believe in the President. What does it tell of the majority of the youth when mock polls in top Universities delivered votes for the opposition? Will the youth in other schools follow suit? Or maybe the first question is, “will the youth vote at all?”

Then there is the 80% Roman Catholic faithful and the call for One Catholic Vote (though not explicitly stating in some cases for 8Diretso? The call is a direct reaction to the constant maligning of the Roman Catholic’s God — Jesus and the Saints and the veiled threat to kill bishops and priests who criticize the President anti-drug campaign. A number of bishops and priests including Bishop Socrates Villegas and Bishop Pablo David and Fr. Albert Alejo and Robert Reyes have pleaded for support in the call the One Catholic Vote at the ire of the President. But where are the rest? Will they use the pulpit to defend their God? Or do they really believe in their God more than in the President?

The last One Catholic vote said to succeed was during the 7 February 1986 snap election when the late Jaime Cardinal Sin issued a pastoral letter read all throughout the Sunday and early morning Monday masses just before election day with the simple message, “Tanggapin ang pera, iboto ang konsensiya (take the money, vote your conscience.”) Here lies the main difference — in 1986 it was a Catholic Church united and led by a fierce Cardinal.

And what about the 90% (60% in D and 30% in E) votes — the vote of the poor? Who will they vote for? Certainly the fisherfolk in Zambales who cannot fish anymore in Panatag Shoal and others in West Philippine Sea areas, the farmers whose rice harvest are now sold at low prices, the families who lost loved ones (specially children like Kian Santos) in TOKHANG, the Filipino workers whose jobs here in their own motherland were given to foreign Chinese workers paid at high salary than them, those who see the Chinese are taking over the country, and those who feel their lives are worse off because of high prices due to inflation would vote for the opposition and not the HNP supported by the President? Or would they?

senate

This 13 May 2019 election is a day of reckoning for Filipinos — the women, the youth, the Catholics and the poor. The suspense is comparable to the Game of Thrones — The Long Night episode. Who will win or lose? Live or die?

Elections are Coming!

The Chinese are already here!

Come 13 May 2019 the battle begins

Who Wins? Who Loses! Who Lives? Who Dies?

And the fate of the entire Philippine Kingdom shall be revealed!

GAMITIN ANG PUSO AT UTAK!

Love the Motherland passionately!

Think critically!

ANG BAYAN KONG PILIPINAS!

Para sa iyo ang boto ko!

Benjamin Roberto G. Barretto is currently a part time professor with the Political Science Department of Ateneo de Manila University. He is also Vice President for Planning and Community Services of the Pamantasan ng Lungsod ng Marikina (PLMar) as well as its Dean for the College of Management and Technology. He was the former Executive Director of the Jesuit Volunteers Philippines Foundation Inc. (JVPFI) and was a former Administrator of the Ateneo School of Government.

Disqualification of Directors of PHCs

May 6, 2019 | 9:44 pm

The Revised CG Code adheres closely to the additional rules of disqualifications for directors of publicly held companies (PHCs) as those found in the Original CG Code, thus:

E) Disqualification of Directors

1. Permanent Disqualification. — The following shall be grounds for the permanent disqualification of a director:

(i) Any person convicted by final judgment or order by a competent judicial or administrative body of any crime that:

(a) involves the purchase or sale of securities, as defined in the Securities Regulation Code;

(b) arises out of the person’s conduct as an underwriter, broker, dealer, investment adviser, principal, distributor, mutual fund dealer, futures commission merchant, commodity trading advisor, or floor broker; or

(c) arises out of his fiduciary relationship with a bank, quasi-bank, trust company, investment house or as an affiliated person of any of them;

(ii) Any person who, by reason of misconduct, after hearing, is permanently enjoined by a final judgment or order of the Commission or any court or administrative body of competent jurisdiction from:

(a) acting as underwriter, broker, dealer, investment adviser, principal distributor, mutual fund dealer, futures commission merchant, commodity trading advisor, or floor broker;

(b) acting as director or officer of a bank, quasi-bank, trust company, investment house, or investment company;

(c) engaging in or continuing any conduct or practice in any of the capacities mentioned in sub-paragraphs (a) and (b) above, or willfully violating the laws that govern securities and banking activities.

The disqualification shall also apply if such person is currently the subject of an order of the Commission or any court or administrative body denying, revoking or suspending any registration, license or permit issued to him under the Corporation Code, Securities Regulation Code (SRC) or any other law administered by the Commission or Bangko Sentral ng Pilipinas (BSP), or under any rule or regulation issued by the Commission or BSP, or has otherwise been restrained to engage in any activity involving securities and banking; or such person is currently the subject of an effective order of a self-regulatory organization suspending or expelling him from membership, participation or association with a member or participant of the organization;

(iii) Any person convicted by final judgment or order by a court or competent administrative body of an offense involving moral turpitude, fraud, embezzlement, theft, estafa, counterfeiting, misappropriation, forgery, bribery, false affirmation, perjury or other fraudulent acts;

(iv) Any person who has been adjudged by final judgment or order of the Commission, court, or competent administrative body to have willfully violated, or willfully aided, abetted, counseled, induced or procured the violation of any provision of the Corporation Code, Securities Regulation Code or any other law administered by the Commission or BSP, or any of its rule, regulation or order;

(v) Any person earlier elected as independent director who becomes an officer, employee or consultant of the same corporation;

(vi) Any person judicially declared as insolvent;

(vii) Any person found guilty by final judgment or order of a foreign court or equivalent financial regulatory authority of acts, violations or misconduct similar to any of the acts, violations or misconduct enumerated in sub-paragraphs (i) to (v) above;

(viii) Conviction by final judgment of an offense punishable by imprisonment for more than six (6) years, or a violation of the Corporation Code committed within five (5) years prior to the date of his election or appointment.

2. Temporary Disqualification. — The Board may provide for the temporary disqualification of a director for any of the following reasons:

(i) Refusal to comply with the disclosure requirements of the Securities Regulation Code and its Implementing Rules and Regulations. The disqualification shall be in effect as long as the refusal persists;

(ii) Absence in more than fifty (50) percent of all regular and special meetings of the Board during his incumbency, or any twelve (12) month period during the said incumbency, unless the absence is due to illness, death in the immediate family or serious accident. The disqualification shall apply for purposes of the succeeding election;

(iii) Dismissal or termination for cause as director of any corporation covered by this Code. The disqualification shall be in effect until he has cleared himself from any involvement in the cause that gave rise to his dismissal or termination;

(iv) If the beneficial equity ownership of an independent director in the corporation or its subsidiaries and affiliates exceeds two percent of its subscribed capital stock. The disqualification shall be lifted if the limit is later complied with;

(v) If any of the judgments or orders cited in the grounds for permanent disqualification has not yet become final.

A temporarily disqualified director shall, within sixty (60) business days from such disqualification, take the appropriate action to remedy or correct the disqualification. If he fails or refuses to do so for unjustified reasons, the disqualification shall become permanent.

The system of “temporary disqualification” and “permanent disqualifications” for members of the Board of Directors in PHCs is similar to those enumerated under the BSP CG Circulars and the IC CG Code, with one essential difference: The section on temporary disqualification under the Revised SEC Code actually grants discretion to the Boards of Directors of PHCs to “provide for the temporary disqualification of a director for the following reasons,” which is a grant of disciplining power to the Board. It is doubtful whether Boards of PHCs can be legally granted any power of actual discipline over their members.

A close reading of the BSP CG Circulars would show that the power to impose either permanent or temporary disqualification on bank directors and officers is vested with the BSP, as the government agency granted by law with the power of control and supervision of banking institutions; and there is no attempt at all to grant such power and discipline to the Boards of Directors of banking institutions. Thus, under Section 4 of BSP Circular No. 296, s. 2001, the election or appointment of directors and officers of banks/quasi-banks shall be subject to confirmation by either the Monetary Board or a committee, depending on the level to be appointed. Section 5(c) thereof provides expressly that directors and officers elected or appointed without possessing the qualifications mandated shall not be confirmed by the confirming authority; and directors and officers possessing any of the disqualifications shall be subject to formal disqualification procedures provided under Section 5(d) of said circular.

Some of the grounds given under the Revised CG Code that grant to the Board the choice to effect temporary disqualification of a director should operate to disqualify a member from even being nominated or elected into the Board in the first place, such as the nondisclosure of business interests as required under the SRC. In addition, it seems unlawful to grant the Board a choice whether or not to temporarily disqualify an independent director “who becomes an officer or employee of the same corporation,” because under the SRC, such director immediately becomes disqualified to continue to sit as an independent director, and there is no power on the part of the Board to retain him.

If any of the grounds exist by which a director is subject to temporary disqualification, and yet the Board does not exercise its SEC Code-given power to suspend him, is the Board then deemed to have been remiss and thereby incurs collective and individual personal liabilities?

What is important to consider at this point is the fact that the SEC’s listing of disqualifications, whether absolute or temporary, is a legitimate exercise of quasi-legislative power and binding within the PHCs sector. We will come back to this crucial point later.

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.

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

cvillanueva@vgslaw.com

map@map.org.ph

http://map.org.ph

Peso weakens as Trump fuels trade woes

May 6, 2019 | 9:40 pm

THE PESO dropped as the US-China trade talks hit another snag.

THE PESO declined against the dollar on Monday as investors flocked to safer currencies following renewed trade tensions between the United States and China.

The peso ended Monday’s session at P51.925 versus the greenback, 7.5 centavos weaker than the P51.85-per-dollar finish last Friday.

The local unit opened the session weaker at P52.06 versus the dollar. It slipped to as low as P52.08 before closing the session at its best showing for the day.

Trading volume picked up to $770.33 million on Monday from the $707.2 million that switched hands the previous day.

Foreign exchange traders attributed the decline to renewed uncertainties in the US-China trade negotiations.

“The peso depreciated from safe-haven demand from renewed US-China trade tensions after US President Donald Trump threatened new tariffs,” a trader said in an e-mail.

The Chinese yuan led the bloodbath in Asian currency markets on Monday after Mr. Trump punctured recent optimism around Sino-US trade talks by announcing hikes in tariffs on $200 billion of Chinese goods.

The surprising move from Washington along with Mr. Trump’s threat of more tariffs dramatically escalated tensions between the world’s top two economies, heavily denting risk appetite in Asia.

The yuan, resuming trade after three days of holidays last week, slumped about one percent to its weakest level in more than three months.

Most other Asian units were also roiled by the surprise move with the Indonesian rupiah weakening up to 0.6%.

The Indian rupee slid up to 0.4%. The Malaysian ringgit slipped 0.2% to its weakest level in more than four months.

The Wall Street Journal reported that Beijing is considering to cancel its scheduled trade talks this week with Washington following Mr. Trump’s threat. Chinese Vice Premier Liu He is set to head to Washington this week.

“We saw the market flock to safer currencies such as the Japanese yen. It’s one of the currencies that strengthened against the dollar,” another trader said in a phone interview.

The second trader added that the peso recovered slightly intraday as market players sold their remittances that piled over the weekend.

For today, the first trader expects the peso to move between P51.80 and P52.10, while the other gave a P51.80-P52.20 range.

“The local currency might weaken further as the likely softer Philippine inflation for April 2019 might bolster views of policy easing on the May 9 Monetary Board meeting.” the first trader said. — K.A.N. Vidal

PHL stocks slump on US-China trade deal fears

May 6, 2019 | 9:40 pm

By Arra B. Francia, Senior Reporter

LOCAL EQUITIES fell on Monday as sentiment turned sour following US President Donald J. Trump’s threats to raise tariffs on $200 billion worth of Chinese goods.

The benchmark Philippine Stock Exchange index (PSEi) slumped 1.32% or 105.68 points to close at 7,862.30. The broader all-shares index likewise dropped 0.94% or 46.20 points to 4,859.86.

“The increase in tariffs by Trump certainly was a factor in pulling our market lower,” AAA Southeast Equities, Inc. President William Matthew M. Cabangon said in a text message.

Mr. Trump tweeted early Monday morning that tariffs on 10% of certain Chinese goods will rise to 25% on Friday, and $325 billion of untaxed goods could face 25% tariffs “shortly.” He also said that the trade deal with China was moving “too slowly.”

China is said to be considering canceling trade talks, which were scheduled to resume in Washington this Wednesday.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan also attributed Monday’s decline to US-China trade issues.

“The trade talk at risk of a collapse/ and the heightening of geopolitical risk headlined today’s market sell-off,” Mr. Limlingan said in a mobile phone message on Monday.

Market futures in the US pointed toward losses in Monday’s trading, with the Dow Jones Industrial Average futures down by 1.81%. S&P 500 futures were lower by 1.67%, while Nasdaq Composite futures also down by 2.03%.

Back home, AAA Southeast Equities’ Mr. Cabangon also added that sentiment has been especially weak because of the PSEi’s failure to hold above the 8,000 level. The main index managed to close at 8,001.57 on May 2, but quickly fell to the 7,900 mark the next day as investors decided to take profits.

“8,000 has proven to be a very strong resistance level for our market, which can discourage investors from buying again at those levels in the near future,” Mr. Cabangon explained.

All sectoral indices ended in the red, with financials leading the decline at 2.18% or 38.81 points to 1,735.65.

Property retreated 1.79% or 76.67 points to 4,196.64; services shed 1.1% or 17.81 points to 1,596.64; industrials slipped 1.02% or 121.29 points to 11,710.81; holding firms declined 0.67% or 51.45 points to 7,540.83; while mining and oil dipped 0.65% or 50.91 points to close at 7,687.45 on Monday.

Value turnover stood at P6.26 billion after some 719.41 million issues switched hands, down from Friday’s P8.18 billion.

Decliners were nearly triple the advancers, 146 to 56, while 35 names were unchanged.

Still, net foreign outflows slimmed to P22.23 million compared to the previous session’s P68.16 million.

The lowest level of pain

May 6, 2019 | 9:39 pm

By Tony Samson

AN ITCH is medically considered the lowest level of pain. Even as it sits at the low end of the agony ladder, the itch cannot be ignored. It can be annoying when lodged at a hard-to-reach part of the body when in the company of others. All the same this pain is easily relieved with a simple scratch.

Still, with the manifestation of allergies and skin rashes ranging from eczema to skin asthma, an itch is not so easily relieved. Only a vigorous assault leading to the scarring of the skin can the pain be assaulted. The persistent itch can then be the manifestation of real pain.

Some itches are not so easily eliminated by the mere application of fingernails and back scratchers.

At its basest form, the itch is a metaphor for an obsession. A man whose desires are too openly displayed is said to be itching to do something, maybe something innocent like a craving for roast pork. In the vernacular, the propensity to scratch a psychological itch, or have it scratched, is unfairly applied to women, showing the dominance of a matriarchal culture which elevates females to itchless creatures.

A woman too showy with her affections and accommodating with her favors is whispered about as “itchy”, especially by fellow females. Such a scratchy propensity is not limited by age.

Itches are passions. None of us are free of them. We only vary in our objects of desire. If an itch is the lowest form of pain, the hobby may be its equivalent in the matter of obsessions. Hobbies are considered harmless until they escalate into full-blown addictions. Thus, the weekend poker player justifying his habit as just bonding with the boys escalates the itch to real pain when involving “real money”. Once the addiction takes hold bigger stakes and more frequent visits to the casino follow.

Removing an itch by scratching can be a cheap delight. It reminds one of Oscar Wilde’s prescription on willpower and dispensing with it altogether — “The best way to get rid of temptation is to yield to it.” The remedy for itches and minor temptations seem to call only for one’s natural inclination of attending to them quickly — here’s the backscratcher, Pal.

As they climb up the ladder of pain and discomfort, itches can no longer be ignored. They may be symptoms of far worse maladies. Then, scratching merely provides temporary relief. As with the blackmailer that starts out with modest payments for hiding a secret, the very willingness to scratch rather than resist the itch only leads to escalation of demands.

As every collector knows, the line between a hobby and an addiction can be slowly crossed. When the itch moves from irritant to howling pain, it is too late to go back. Only the first acquisition of a collector is tentative as the subsequent ones now combine expertise and arrogance. This itch for more is true of any collection, be it stamps, butterflies, art, walking sticks, women, and companies. The costs of the last two can exceed the acquisition price as they progress into further maintenance and operating expenses. They then become black holes (astrologically speaking) that suck up fortunes that include debt and broken hearts to blossom into real agony. Trying to stop the pain with sheer willpower ushers in withdrawal symptoms, often involving bank balances.

Is there a political equivalent of the itch?

The urge to “run for office” is an itch. It is a combination of the urge to serve (can’t you help the community as an ordinary citizen?) as well as the unexpressed desire for power and adulation. Just because you think you are popular in your subdivision doesn’t mean you can win an election, even for president of the homeowners’ association.

There is too the lowest form of pain for the body politic. Traffic woes are itches. So is the growing lack of civility in political discourse. What about the discomfort with growing incursions of a foreign power and the crackdown on critical thinking?

An itch that is not relieved quickly and left unattended can climb the ladder to a higher level of pain. The gradual ascent is not even noticeable…until it is impossible to ignore or attend to.

Tony Samson is Chairman and CEO, TOUCH xda

ar.samson@yahoo.com

Germany needs a global role to suit its size

May 6, 2019 | 9:39 pm

WHEN US Vice-President Mike Pence declared in a speech marking NATO’s 70^th anniversary that “too many” alliance members have failed to increase spending on their militaries, he singled out one by name. “Germany must do more,” he said, adding that “it is simply unacceptable for Europe’s largest economy to … neglect its own self-defense and our common defense at such a level.”

The broadside was hardly unexpected: The Trump administration has made a habit of deriding America’s European allies as free riders. The complaints are overdone, but not entirely wrong. Rather than bristle, Germany’s leaders should take up the challenge — and assume global responsibilities commensurate with the country’s economic strength. This would be good for Europe, and for Germany.

Upgrading the country’s armed forces is the first step. Years of neglect have left the Bundeswehr in dismal condition. More than half of its tanks, helicopters and fighter planes have been judged unfit for deployment, and all six of its submarines are too hobbled to leave port. The standing army, which had some 500,000 troops at the end of the Cold War, now numbers only 180,000 — among the smallest in NATO, on a per capita basis.

The government of Chancellor Angela Merkel, who plans to retire in 2021, has tried to shake the country’s aversion to foreign military interventions. German troops are active in Afghanistan and Mali and lead a NATO battalion deployed to Lithuania to deter Russian aggression. Germany will spend 43 billion euros on defense this year, some 26% more than it did a decade ago.

That’s still just 1.3% of Germany’s GDP — far less than the 2% target all NATO members agreed to in 2014, a cudgel Trump has wielded repeatedly against Berlin. Merkel has pledged to spend 1.5% of GDP by 2024, but faces resistance from her coalition partner, the center-left Social Democratic Party. Public opinion is no more favorable: Growing numbers say Germany should become more active in international crises, but just 32% of Germans support more spending on defense.

While pressing that case, Merkel and the defense minister, Ursula von der Leyen, should aim to get more from what’s already being spent. They should reform the military’s inefficient procurement system, a cause of chronic delays and cost overruns. Closer coordination with other European armies could help to eliminate redundant weapons systems and reduce training costs. And much-needed investments in domestic infrastructure — such as improving Germany’s notoriously patchy broadband network — will yield benefits for the Bundeswehr and civilians alike.

Soft power matters too. Germany needs to bolster its diplomatic corps, which has nearly 1,000 fewer diplomats than in 1990. Among OECD countries, it’s the second largest donor of development aid in real dollars, but spends less as a proportion of its national income than the U.K., Denmark, Norway, Luxembourg and Sweden. Given its size and resources, Germany could take the lead in promoting development, good governance and private investment in Africa — which would counter Chinese influence on the continent and help to prevent future migration crises in Europe.

The biggest challenge facing Germany is to advance Europe’s cohesion and democratic identity. Berlin should champion proposals to tie EU funds to member governments’ adherence to the rule of law and create an EU fund for civil-society groups that defend liberal values. And it should resist Russian attempts to weaken European solidarity — which means, among other things, heeding allies’ objections to the Nord Stream 2 pipeline, which would carry gas from Russia to Germany.

During Merkel’s 13-year tenure, Germany has been a responsible and largely stabilizing force on the world stage — a role that’s all the more vital in the age of Trump. But Germany could and should do more. Merkel should bequeath her successors a more fitting and ambitious vision of what comes next.

BLOOMBERG

FEU emphasizes focus and will to win in rubber match

May 6, 2019 | 8:13 pm

By Michael Angelo S. Murillo
Senior Reporter

THE FAR EASTERN University Lady Tamaraws lived to fight another day in Season 81 of the University Athletic Association of the Philippines after they negated a twice-to-win disadvantage in the semifinals against the Ateneo Lady Eagles with a hard-earned five-sets win in the first game at the weekend.

But the Morayta-based team recognizes that it is not out of the woods yet and that it has to stay on top of its game, not only skills-wise, in the rubber match on Wednesday if it is to realize its goal of advancing to the finals of the women’s volleyball tournament for the second straight year.

Getting valuable contributions from different sources in the opener of their Final Four on May 4, the Lady Tamaraws outlasted the top-seeds Lady Eagles in five sets, 10-25, 25-23, 25-22, 12-25 and 15-8, to force a do-or-die on May 8 at the FilOil Flying V Arena in San Juan City to determine who advance to the Big Dance.

FEU came out flat to begin the contest but dug deep in each of the next two sets to seize control of the match.

In the fourth frame, the Lady Tamaraws fell back and saw their opponents level the count.

But in the deciding set they would recalibrate, bucking a slow start to speed past the Lady Eagles the rest of the way and never looked back on their way to the victory.

The FEU veterans stepped up in their season-extending victory with graduating player Heather Guino-o leading the charge with 17 points and Nette Villareal adding 10.

Jerrili Malabanan had eight points while rookie France Ronquillo held her own with seven markers.

FEU coach George Pascua gave his players credit for stepping up to the challenge the way they did and responding to the call to play as if it is their last game.

“It’s a testament to the determination of the players to fight. This is a battle of character right now. We just told them to treat all of your games as a championship game,” said Mr. Pascua in the post-match interview.

To date, FEU has been 7-1 in five-setters this season.

Mr. Pascua reiterated that focus and will to win play a key part at this stage of the competition and the team which has them will give their cause a big boost.

“It’s no longer about the skills but more of the willingness to win. It’s already the semis and you have to go all out. All the weapons you have, you have to put it out there. Who has the heart and the mind to go for it will win it,” he said.

The FEU coach went on to say that the rubber match with Ateneo on Wednesday should be a tougher game and that they have to come in prepared as they can be.

“We still need to improve on things. Wednesday will be tougher game with a lot of pressure,” Mr. Pascua said.

The winner of the Ateneo-FEU semifinals will move on to the championship round against the University of Santo Tomas Golden Tigresses, who dethroned the defending champions De La Salle Lady Spikers in their Final Four bracket on Sunday in five sets.

UST carried a twice-to-beat advantage but saw no need to use it.

The best-of-three finals series of the women’s volleyball tournament of UAAP Season 81 begins on May 11.

Murray scores 34 as Nuggets even series

May 6, 2019 | 8:13 pm

LOS ANGELES — Jamal Murray scored 34 points and Nikola Jokic collected 21 points, 12 rebounds and 11 assists as the visiting Denver Nuggets wrested back homecourt advantage with a 116-112 victory over the Portland Trail Blazers Sunday.

The Nuggets’ win squared the best-of-seven series at 2-2, with Game 5 Tuesday night in Denver.

Murray was 11-for-11 from the free-throw line, including six in the final 13.2 seconds to help the Nuggets stave off the Blazers. The 7-foot Jokic registered his second straight triple-double and his fourth of the postseason. Denver also got 21 points and 10 rebounds from Paul Millsap.

CJ McCollum scored 29 points and Damian Lillard added 28 for the Blazers.

Seth Curry came off the bench for 16 points on six-for-nine shooting — four-for-six from 3-point range. Curry had 14 of his points in the second quarter as the Blazers seized a 63-57 lead at halftime.

Four Blazers were in double figures by the break, including Al-Farouq Aminu (13), McCollum (12) and Lillard (10). Murray led Denver with 17 points.

The Nuggets went ahead 75-72 midway through the third quarter. Outscoring Portland 27-14 in the quarter, they carried an 84-77 advantage into the final period.

Denver led 87-77 before the Blazers went on an 8-0 tear to draw within 87-85. The Nuggets were in front 94-88 when Lillard sank a 3-pointer to cut it to 94-91 with 6:14 remaining. Denver stoked the difference to 99-93 with 5:16 left.

Lillard hit a pair of foul shots to close it to 99-98 with 3:26 to play. Will Barton’s 3 gave Denver a 102-98 lead, but Lillard answered with a layup to make it 102-100. After Gary Harris and McCollum traded baskets, Barton buried another 3 for a 107-102 Denver lead with 1:38 to go.

Aminu scored on a floater to cut it to 107-104, but Harris converted a three-point play for a 110-104 Denver lead with 1:03 remaining.

Rodney Hood hit a corner 3 with 52.2 seconds to go to trim the difference to 110-107. Lillard split a pair at the line to make it 110-108 with 20.3 seconds left. Two free throws by Murray increased the Nuggets’ edge to 112-108 with 13.2 seconds on the clock.

After Lillard scored on a layup with 7.7 seconds remaining, Murray hit a pair of free throws to make it 114-110 with 6.7 seconds to play. McCollum scored on a long two-point shot to cut it to 114-112 with 4.4 seconds to go, but Murray clinched it with another pair at the line with 3.4 ticks left.

KAWHI CARRIES TORONTO OVER PHILADELPHIA IN GAME 4
Kawhi Leonard had 39 points and 14 rebounds and the second-seeded Toronto Raptors defeated the host Philadelphia 76ers 101-96 on Sunday to even the Eastern Conference semifinals at two games apiece.

Marc Gasol scored 16 points and Kyle Lowry added 14 points and seven assists for Toronto.

Pascal Siakam, who had been doubtful with a sore calf, was in the starting lineup and missed his first seven shots, but he gave the Raptors a lift with nine points and three steals.

Game Five is Tuesday in Toronto.

Jimmy Butler paced the third-seeded Sixers with 29 points and 11 rebounds while JJ Redick added 19. Joel Embiid, who was reportedly ill, had only 11 points, eight rebounds and seven assists one game after scoring 33 in Philadelphia’s Game 3 victory.

Leonard was terrific with 17 points and 10 rebounds as the Raptors pulled ahead 47-45 at halftime. It was the first time in Leonard’s career that he posted at least 15 points and 10 rebounds in any half.

Butler was the only Philadelphia player in double figures with 14 points in the first half. Embiid appeared to be bothered by a left leg issue and finished the first two quarters with only six points and five rebounds.

Butler hit a difficult 3-pointer from the wing and the Sixers pulled ahead 57-52 with 7:48 left in the third.

Siakam finally recorded his first basket when he received a pass from Lowry and threw down a dunk for a 66-65 Raptors advantage with 4:15 remaining in the third.

Harris later drained a 3-pointer to give the Sixers a two-point lead with under a minute left in the quarter. Serge Ibaka then hit a jump hook in the lane and the Raptors tied the game at 75 at the end of the third.

The game became quite chippy with bodies falling to the floor and both teams diving for loose balls while playing a physical brand of basketball.

Leonard hit 1 of 2 two free throws and Toronto led 85-84 with 6:20 left.

Despite missing nine straight shots, the Sixers still trailed by only 89-87 with 2:35 remaining after a pair of Butler free throws.

Leonard’s trey with the shot clock running out gave the Raptors a 94-90 advantage with 1:01 left, and after Tobias Harris missed a 3-pointer on the 76ers’ ensuing possession, Toronto sealed the win by making 7 of 10 free throws down the stretch. — Reuters

Phenom Sports Management manages rising players’ career

May 6, 2019 | 8:12 pm

ALLYN Bulanadi, Mark Nonoy, Joshua Cajucom and Harvey Pagsanjan are the first ambassadors of the Phenom Sports Management, a group which manages the career of rising stars who are trying to take their game to the next level.

Bulanadi is a 6-foot-2 dead-shot forward from the San Sebastian Stags is also a standout of the Valencia-Baste in PBA D-League.

Nonoy, a former junior standout, is now a freshman playing for University of Santo Tomas. He was a basketball sensation from Western Visayas who made everybody’s heads turn in last year’s Palarong Pambansa. He is also considered among the top high school players in the nation.

Cajucom is a point guard from Hope Christian High School and currently included in the Gilas Pilipinas Under-19 squad.

Pagsanjan, a former standout of the Batang Gilas team that won the SEABA Under-16 tournament three years ago, is now a member of the University of the East Warriors squad. The 6-foot-1 guard is included in the top 10 of promising young players by the National Basketball Training Center.

These players will start off Phenom Sports Management’s vision of molding the character of young players who are not only being taught of taking care of their basketball careers but also preparing them on life after basketball.

Jax Chua, the founder of this group, admitted that he drew inspiration of creating this agency when they got involved in the Maharlika Pilipinas Basketball League (MPBL).

Chua serves as the assistant general manager of the Basilan Steel headed by Hegem Furigay and ARMM Governor Mujiv Hataman.

Chua came the idea of putting up this sports agency while having breakfast during Basilan Steel’s series of tryouts and basketball camps in the province.

His coaches — Jerson Cabiltes, who handles the Basilan Steel in the MPBL and Joseph Guion — were very supportive on the program.

For Coach Guion, he believes making a gamble on these young players would be all worth it despite the uncertain future in basketball.

“We don’t know what’s going to happen whether they will be successful or not,” added Guion. “In every 10 players you’re going to help out, not everybody will become successful. That’s why we set a baseline of P150,000. If a player will get a playing contract or a salary that is below P150,000, we will not get anything from them. Less than P150,000, we’re waiving our commission. We will only get commission once a player gets P150,000 and up.” — Rey Joble

1...11,03411,03511,036...14,238 Page 11,035 of 14,238