Home Blog Page 11332

DBM orders early start to 2019 procurement

THE DEPARTMENT of Budget and Management (DBM) ordered government agencies to conduct early procurement activities in the fourth quarter for 2019 projects, to speed up delivery upon the implementation of the General Appropriations Act.
“All government entities covered by this Circular shall undertake Early Procurement activities, from October to December 2018, upon the submission of the FY 2019 NEP to Congress,” the DBM said in a circular letter dated July 30, and signed by Budget Secretary Benjamin E. Diokno. NEP refers to the National Expenditure Program.
“To ensure efficient implementation of programs, activities, and projects, agencies shall undertake timely procurement planning and Early Procurement activities,” the circular read.
“Early Procurement shall be undertaken for the majority of the planned procurement of agencies as included in the NEP submitted to Congress. This ensures that all single-year projects shall be fully implemented within the validity period of the FY 2019 national budget,” it added.
Early procurement activities include pre-procurement conferences to post-qualification of bids and a recommendation by the Bids and Awards Committee (BAC) to award contracts.
The proposed P3.757-trillion budget for 2019 will shift from a two-year obligation-based appropriation to an annual cash-based system, with allocations limited to the requirement for payments for goods delivered, services rendered, and infrastructure projects completed by the end of a fiscal year.
The circular covers all national government agencies including constitutional commissions, Congress, the Judiciary, Office of the Ombudsman, state universities and colleges, government-owned-or-controlled corporations, local water districts, and local government units.
Early procurement activities also include the harmonization of the indicative annual procurement plan (APP) for non-common-used supplies and equipment, the approval of the head procuring entity for the APP, the posting of the APP on government websites, and securing the Multi-Year Obligational Authority from the DBM for each multi-year project to start implementation in 2019.
It also includes the completion of appropriate preparatory activities, such as the accomplishment of feasibility studies, detailed engineering designs, securing the required regulatory clearances, and right-of-way acquisitions for civil works projects, among others.
Budget deliberations began on Tuesday at the House committee on appropriations. The Senate will start counterpart committee-level discussions on Aug. 7. — Elijah Joseph C. Tubayan

ERC orders additional data on deposits by power consumers

THE ENERGY Regulatory Commission (ERC) has directed distribution utilities to submit within 15 days documents relating to electricity consumers’ bill deposits, including the total amount collected, refunded and the balance remaining with them.
“With the upcoming inquiry by the House of Representatives, there is a need to update the data on bill deposits utilization to address the issues and concerns on this matter,” said Agnes T. Devanadera, ERC chairperson and chief executive officer, in a statement on Thursday.
The ERC said the data requested from the utilities are needed to update the agency’s data on bill deposits for the calendar year 2018. They are to submit the data within 15 days from receipt of the letters issued by the ERC.
In particular, the utilities were directed to submit the total amount of bill deposits collected from the effectivity of Magna Carta for Residential Electricity Consumers (MREC) up to March 31, 2018; and the total amount of interest earned and credited to the registered customers for the same period.
They are also to submit the total amount of bill deposits and interest refunded to the consumers from the effectivity of MREC up to March 31, 2018; and the total balance of bill deposits inclusive of interest earned less amounts refunded to registered customers during the period. — Victor V. Saulon

A thought on the draft constitution: I don’t like it

Well, it’s not really the ConCom (or Constitutional Commission) but rather a ConCom (for Consultative Committee). From a read of EO 10, Series of 2016, the Committee’s job is to study, conduct consultations, and review the provisions of the 1987 Constitution and, thereafter, submit its report, recommendations, and proposals to the President. He then transmits said recommendations and proposals to Congress. And that’s that, the “Committee shall cease to exist.”
That the Committee’s draft constitution generated the buzz and passion it had is actually a credit to the Committee members. My fellow BusinessWorld columnist, the normally placid Calixto Chikiamco, declared the draft “terrible, particularly on its economic provisions. The committee members should hang their heads in shame for such a protectionist and backward-looking document. Instead, the country should move forward and remove the foreign equity restrictions and protectionist provisions in the present Constitution.”
One has to go back to Ferdinand Marcos’ efforts to revise the Civil Service Code and, before that, Manuel Roxas’ Civil Code Commission (by EO 48, Series of 1947) to see such famously similar working grouping in our history. And remember those were not working on constitutional changes.
Still, it must be remembered that the Committee is essentially just President Rodrigo Duterte’s “Technical Working Group.” Roxas’ TWG may have Jorge Bocobo, JBL Reyes, Flérida Ruth P. Romero, José Vitug, and Edgardo Paras, with assistance by Arturo Tolentino. Marcos’ TWG on the civil service had Rafael Salas. Duterte has powerhouses Chief Justice Reynato Puno, Justice Antonio Nachura, and Fr. Ranhilio Aquino. Yet their work is but the President’s suggested working draft to Congress.
The Consultative Committee is not part of the process contemplated in Article XVII of the Constitution. Even assuming the Committee still exists (which it no longer does), the best it can do is hope that Congress uses their draft, which it has full discretion to simply ignore.
And despite the earned prestige and professional respect that many of the Committee members attained, it is expected of Congress to massively rework the draft or start from scratch.
Contrary to what Chief Justice Hilario Davide, Jr. says, the 1987 Constitution is not the “best in the world.” No constitution that bothers itself about advertising, limits the organization of the police, and then talks of so many things, from “love” to “athletic clubs,” can be that good.
Now, surveys show that around 72% of the population don’t understand our present unitary government of divided and separated powers (which is just three: the executive, legislative, and the judiciary)?
So why not make it more complicated and have a federal form of government? This — it must be emphasized — does not involve merely having another level of government, which is what we have now: a national government with local governments below it.
Doing so burdens the people with the conundrum of defining and controlling the inevitable “tug of war” that dividing and allocating powers create.
People right now find it hard to understand that our Supreme Court, unlike lower courts, is a court of law and not of facts? That issues like constitutional interpretation and the limits of judicial review are hotly debated among legal scholars due to worries over judicial oligarchy?
Well, why not create an even more complicated legal system: “the Federal Supreme Court, the Federal Constitutional Court, the Federal Administrative Court, the Federal Electoral Court,” plus other courts as may be established by law?
Constitutional improvements could have been effected by simply deleting Articles I, II, XII, XIII, XIV, and XV, and merging XVI, XVII, and XVIII; all the while paring and refining the Preamble and the remaining provisions, give greater powers to Congress, decrease the Presidency, limit the Supreme Court to legal questions (deleting the grave abuse clause), and give greater responsibility and fiscal freedom to local government units. It would also be better for the Constitution to be silent regarding Philippine territory, leaving it to Congress (along with our military) to regulate and define it.
Finally, whereas perhaps the most successful constitution in the world, the US Constitution, has merely 4,500 words (around 15 pages), the 1987 Constitution logs in 21,700 words (around 41 pages). The draft constitution tops them both at 31,500 words, at 82 pages.
Some 1,643 of those words are spent creating the “Federated Regions,” with Congress having the power (subject to the people’s ratification) to “create, abolish, merge and divide the Regions and determine their constituent political subdivisions.”
Does anyone see the incongruity there?
Federalism logically arises from pre-existing, independent, distinct political entities (e.g., States) that decide to unite for various pragmatic reasons and surrender some of their sovereign powers to that newly created legal entity. Effectively, two sovereign powers are simultaneously and equally at play: that of the various States and the new entity.
From the foregoing, one sees why no country in history with a unitary form of government decided to go federal.
Because it just doesn’t make sense.
 
Jemy Gatdula is a Senior Fellow of the Philippine Council for Foreign Relations and a Philippine Judicial Academy law lecturer for constitutional philosophy and jurisprudence.
jemygatdula@yahoo.com
www.jemygatdula.blogspot.com
facebook.com/jemy.gatdula
Twitter @jemygatdula

The ignorance that kills

Within months of his coming to power in 2016, President Rodrigo Duterte’s profanities, tirades, threats, outrageous remarks about women, human rights, heads of foreign states, and what he was actually doing, had called the attention of international media — in Japan, the United States and Europe — to what was happening in the Philippines.
As early as his first 100 days in office, and as the number of extrajudicial killings of suspected drug users and pushers including women and children from the poorest communities escalated, they called him “serial killer,” “the punisher,” and a human rights violator indictable before the International Criminal Court (ICC) for crimes against humanity. In his second year in power they called him a “populist dictator” and a tyrant (“strongman”) in the same company as Turkey’s Recep Tayyip Erdogan and Russia’s Vladimir Putin.
In almost every case, however, the journalists who were mostly reporting on the human rights crisis in the Philippines reminded readers that Mr. Duterte was “democratically elected.” Some also pointed out that the 16 million votes he amassed in a field of five candidates for president (Manuel Roxas II, Miriam Defensor Santiago, Grace Poe, Jejomar Binay and Duterte), although less than 40% of the total votes cast, was practically a landslide.
Both why he won, despite his admitted links to the Davao Death Squad and his threat to kill 100,000 during the anti-illegal drug campaign he vowed to launch once in power, and his continuing popularity despite the police bloodbath he encouraged, were among the questions they tried to answer.
Among the answers they proffered, based on their interviews with Filipino sources and their own analysis, was that the voters were weary of the corruption and inefficiency of past administrations, and that the tough-talking Duterte appealed to the millions of Filipino poor who have long wanted change, particularly an end to the criminality that haunts both city and countryside, and who saw no other way to achieve it except by killing criminals without recourse to legal niceties.
To this day, 70% of adult Filipinos think that the “war” on drugs is Mr. Duterte’s crowning achievement despite its horrific cost in lives and its enshrinement of the use of State violence as the first and at times the only “solution” to the country’s problems.
Although it has always been every regime’s weapon of choice against critics, protesters, human rights defenders, political and social activists, environmentalists, indigenous peoples defending their right to their ancestral domain, and anyone else committed to the democratization of Philippine governance and society, killing as State policy has never been as openly endorsed by any president and as widely supported by his partisans than today.
Both its adoption as State policy and the support for it are premised on the assumption that crime, the drug problem included, can be eliminated by simply doing away with suspected wrong doers. That those killed in anti-drug police operations were denied their right to due process and a fair trial has been dismissed so often and so loudly on the argument that they’re necessary it has endowed lawless violence with a cloak of legitimacy. The policy ignores the social and economic roots of criminal behavior, the persistence of the culture of impunity which too often penalizes the innocent and absolves the guilty, and in many cases, the demonstration effect of the wealthy and well-connected’s literally getting away with murder that encourages gangsterism and criminality.
Together with the promotion of killing as State policy, however, is mass indifference to, and even support for, the return of dictatorship, which Mr. Duterte himself has proposed as the quick-fix solution to the country’s complex problems.
No one can blame the foreign press and other observers for being deeply surprised at the seemingly wide support for the dictatorship option. After all, did not Filipinos overthrow the Marcos terror regime only 32 years ago? Didn’t that regime imprison 100,000 men and women and kill over 3,000 of the Filipino people’s best and brightest sons and daughters? Didn’t it bloat the foreign debt from less than a billion dollars to $30 billion? Didn’t it so empower the military it made civilian supremacy over the country’s security forces a joke?
Filipinos did oust Marcos in 1986 — and the Marcos dictatorship did all that, and worse. But many Filipinos today think that the period from 1973 to 1986 was some sort of golden age.
Their ignorance of that time proceeds from a number of causes, among them the failure of the administrations after that of Marcos’ to make sure that succeeding generations will understand what really happened. The creation of a truth commission in the manner of similar bodies in South Africa after apartheid, or in Chile after the collapse of the Pinochet dictatorship, was ever contemplated by the fragile, coup-threatened Corazon Aquino administration. The administrations that succeeded hers were focused on remaining in power, hardly cared about the threat of dictatorship, and were in fact more than willing to welcome the Marcoses back after Ferdinand Marcos’ death in 1989.
The Marcoses’ return to power — in fact the possibility today that Ferdinand Marcos, Jr. could actually be president — is as difficult for foreign observers to fathom as many Filipinos’ support for a despotic president. Both are quite simply based, not solely on lack of information, but also on false information.
But that false and misleading information has become deeply rooted in the minds of many Filipinos isn’t due only to the failure of the generation that lived through the dictatorship to impart its lessons to the next. It’s also because of the unwillingness of the dynasties in control of the Philippine State to break from that sordid past, they being one and the same in economic and political interests as the Marcoses and their cronies, many of whom are back in power in both the national and local governments. Mr. Duterte’s pro-Marcos idolatry and declared preference for martial law and dictatorship have also contributed to his partisans’ clueless support for the Marcoses and for the return of authoritarian rule.
Quite openly and often accompanied by threats of physical harm against those who disagree with them, however, the apostles of “strong government” justify murder as a State prerogative in combatting crime, in the process intensifying the country’s descent into chaos and even worse violence.
Because support for what amounts to fascist rule is based on ignorance — of history, human rights, and democratic ideals — what is clearly needed is a campaign to educate the vast majority on such issues as what happened during the Marcos dictatorship, its economic, social, political and cultural costs, and the imperative of resisting any attempt to restore a rehashed version of it. What this country needs in these times of lies, hate speech, unreason and the unprecedented use of State violence is an information revolution.
Now the unashamed advocate of that foul period in history, government is so obviously unwilling and incapable of doing it. On the media, the churches, the schools, human rights defenders and on nongovernmental, sectoral, and people’s organizations has therefore fallen the task of combatting the ignorance that kills, and replacing it with the understanding of issues and events that can stop the ongoing slaughter of the poor, regime critics and protesters, and halt the rise of another homegrown tyranny.
 
Luis V. Teodoro is on Facebook and Twitter (@luisteodoro). The views expressed in Vantage Point are his own and do not represent the views of the Center for Media Freedom and Responsibility.
www.luisteodoro.com

A tribute to Carmen Guerrero-Nakpil

“We Filipinos draw our endless patience, our good nature and our trust in God’s master plan from a simple unshakeable faith. I surprise myself quoting to a distraught son, daughter or friend, Teresa of Avila’s comforting lines which I learned when I was 9, “Nadie te turbe. Nada te espante.” Let nothing disturb or frighten you. Everything passes. God never changes. Solo Dios basta. God alone suffices. Exeunt.”

— Carmen Guerrero-Nakpil, Exeunt

Carmen Guerrero-Nakpil is now a glowing star in the firmament. The Grande Dame of Letters lives on through her priceless legacy — her books.
Tita Chitang “CGN” was the compleat woman — eminent historian, erudite essayist, witty and acerbic journalist, eloquent author, public servant, ambassador and international technocrat, Chair of the National Historical Commission. She was a multi-faceted individual with many achievements and awards among them, the National Book Award. She was a mother, grandmother and loyal friend, the wise, formidable, awesome icon of culture to countless admirers. She loved our country and was proud to be a nationalist.
Here are some quotes that describe her:
“Mom was very proud of her having won a seat on the UNESCO board of directors — the ruling organization based in Paris. While the Philippines had representatives with rank of ambassador, it was the first time for the Philippines to get on the 13-person board which had to be elected by 150-member countries,” her daughter Lisa Guerrero Nakpil said.
Ms. Nakpil had the rank of ambassador. The Department of Foreign Affairs properly recognized this with a formal statement from Secretary Alan Peter Cayetano.
“Chitang was an intellectual with much charms and wit. She was a lady in every sense of the word and carried an allure that enchanted everyone that she must have met. She was to me, an idol. She was a top representative of the Philippines to UNESCO, the center of the intellectuals and artists in Paris. And that is how I came to greatly admire and respect her. May she rest in peace.” – Rosario G. Manalo, Ambassador, Former Undersecretary of Foreign Affairs
“Carmen Guerrero Nakpil is a most intelligent Filipino writer. Her mastery of the English language is incomparable. Her sense of history is as great as her knowledge of our country’s past.” — Virgilio Almario, National Artist for Literature, Chairman of the National Commission of Culture and the Arts.
“I had the pleasure of knowing Chitang and her family for many years since the end of WWII. During and after Martial law, Chitang was guest of the Foreign Correspondents Association of the Philippines in several of its regular fora where she impressed foreign correspondents with her meaningful insights of current affairs, as well as her deep knowledge of Philippine history and the Filipino. Any interaction with Chitang was always an experience.” — Gabby Tabunar, long time correspondent for CBS News and one of the founders of the Foreign Correspondents Association of the Philippines (FOCAP).
“Carmen Guerrero Nakpil was the greatest National Artist we never had.” — Deanna Ongpin Recto, Museum Foundation trustee, former UNESCO representative
“Tita Chitang — a force of nature with her cutting wit. I will miss her.” — Kat Legarda
“A beautiful mind and a beautiful soul. I was first attracted to her writing style, relaxed but uncompromising, even when writing under a pseudonym. Then I found persona even more complex and beguiling. I love her and will miss her.” — Rex Robles, Navy Commodore and former RAM leader
“I have always wished that someone would make a film out of her elegant and gripping memoir, “Myself, Elsewhere,” her paean to Old Manila and a way of life that was mannered and decent. When I feel low about my country, and even about my writing abilities, I simply re-read that book and am again restored in spirit and faith that the Filipino — and I — will endure, thrive and laugh at the fact that we could ever doubt our uniqueness.” — Margie Logarta, journalist, editor.
We all looked up to the beautiful icon of history, elegance and style.
For many years, I was lucky to have been guided by her in many ways — in art and culture as well as matters of the heart. She was my “cultural Mom” who inspired and encouraged me. She was frank and pointed out what was appropriate and proper, what was in good taste and what was right. She had seen and experienced it all in her long, colorful life. Nothing fazed her. The sense of confidence was the glowing aura that she projected to all of us who were her friends. We met every second and fourth Wednesday of the month.
The CGN friends celebrated historical holidays, book launches, exhibits and milestones. She cared about us, individually and she bound us together as an extended family. We all loved her and will continue to meet and to honor her. And we will miss her regal presence.
The last time I saw her was on her 96th birthday on July 19. She looked youthful, beautiful and peaceful. She was ready for her flight to heaven. Au revoir, Tita Chitang!
Note: Exeunt is the last of her autobiographical trilogy. The title is a term from stage direction. It specifies that a character leaves the stage. It also indicates “The End” (Nakpil Publishing, 2009)
 
Maria Victoria Rufino is an artist, writer and businesswoman. She is president and executive producer of Maverick Productions.
mavrufino@gmail.com

India’s bank crisis is really a power crisis

By Mihir Sharma
INDIA’S government seems intent on abandoning good ideas for dealing with the country’s banking crisis and encouraging bad ones. Perhaps that shouldn’t be surprising, given that the bureaucrats don’t yet seem to have grappled with the real nature of the problem.
The latest terrible proposal for dealing with the bad loans weighing down India’s state-owned banks, which control more than two-thirds of deposits, is to create a “bad bank” — an asset-management company that would take stressed assets off their balance sheets. Naturally, the scheme emerged from a committee made up of the heads of India’s nationalized banks.
Ownership of the new company would be shared between banks and private investors. It would have to raise at least 1 trillion rupees (about $14.5 billion) for an alternative investment fund from various pools of capital in the private sector. Why so much? Because the company will have to act as a market maker for stressed assets that nobody wants, picking up 15% of an agreed-upon floor price.
This is the real issue. There are already quite a few private-sector asset management companies lurking around now that India has finally instituted a real insolvency code. The problem isn’t that they don’t have enough money, it’s that not enough of the stressed assets being put on sale look good enough to buy.
The most intractable bad loans, the ones the bad bank is meant to deal with, are concentrated in one sector: power. In particular, Indian thermal plants are struggling. A parliamentary subcommittee estimated earlier this year that 34,000 megawatts worth of capacity is in trouble. Either nobody has signed up to buy power from these plants, rendering them unprofitable, or they don’t have access to subsidized coal.
An industry association thinks that the real number is closer to 50,000 megawatts, in the same ballpark as all the capacity added in the past five years of feverish plant-building. Others have provided even higher estimates. This is a significant proportion of India’s total power generation capacity — and, at perhaps 4 trillion rupees, a sizeable fraction of the banks’ balance sheets.
India isn’t alone.
In several countries, analysts are beginning to wonder if “stranded assets” — in particular, thermal capacity left behind in the shift to renewables or to more efficient generation — threaten to create systemic stress for the financial system. One estimate suggests that European financial institutions alone, including pension funds, have more than 1 trillion euros of exposure to fossil-fuel companies and projects, and even a smooth transition to a low-carbon economy might involve losses of 400 billion euros. Worse, it isn’t always certain who’s exposed to what degree — the exact circumstances in which sudden crises can take hold.
In the US, meanwhile, coal companies are returning to the leveraged-loan market with a vengeance; fossil-fuel assets already made up a third of that market in 2015.
In India, renewable energy now looks competitive with “zombie” thermal power plants in terms of cost, while new plants require government subsidies and favorable administrative decisions that bureaucrats are reluctant to provide.
In addition, provincial power utilities are chronically in the red because of their inability to force end-users of electricity to pay up. Even if they recover, and more and more Indians get access to electricity, a decent proportion of the investment in the sector is going to go into renewables or clean coal.
Those stressed assets that have been — or are likely to be — rehabilitated seem to be in sectors like steel, where recovering domestic demand in India (and some handy antidumping tariffs targeted at China) have convinced some investors to take a punt on a plant or two.
By contrast, there are no takers for plants, like one $38-billion white elephant in Jharkhand, that were only profitable if the government subsidized their coal. Private Indian power plants are in any case operating at only 55% of capacity; who would want to risk setting up another one?
The transition to a lower-carbon economy is a reality, even for countries like India where coal will still be the bedrock of power generation for decades to come and even if renewable energy is still unreliable for base-load power. Given that this transition is real and happening, policy makers around the world must understand that carbon-based assets are a financial time bomb.
In India, they look like they might torpedo the banking sector; elsewhere, they will pose other major threats to financial stability. It’s time for regulators to get serious about the knock-on effects of the world’s fight against climate change.
 
BLOOMBERG

Peso slips on hawkish Fed

THE PESO dropped a centavo due to the Federal Reserve statement. — BW FILE PHOTO

THE PESO slipped on Thursday, inching back to the P52 level intraday, as tracked the dollar in tight trade due to the hawkish stance of the US central bank.
The local unit closed the session at P53.09 versus the greenback on Thursday, inching down by a centavo from the P53.08-per-dollar finish the previous day.
The peso strengthened as it opened the session at P52.985 per dollar. It climbed to as high as P52.935 during the day, while its worst showing was yesterday’s close.
Dollars traded rose to $849.2 million from the $642.13 million that exchanged hands the previous day.
A foreign exchange trader said the peso “traded within a tight range” as it tracked the movement of the dollar.
“I think there’s some corporate demand from power companies, and at the same time, the peso followed the dollar movement [on Thursday],” the trader said in a phone interview.
“The peso closed relatively sideways as market players took advantage of the stronger peso during the day after the Fed decided to keep their policy rates steady,” another trader said in an e-mail.
Reuters reported that the dollar index climbed a tad against a basket of six currencies at 94.7, after the US Federal Reserve gave a hawkish assessment on the American economy, affirming to stay on course of a gradual monetary policy tightening.
The central bank has kept its interest rates steady during the two-day policy meeting. The Fed said the US economy remains strong on the back of sustained job growth and increased household spending, noting that the monetary authority is on track to tweak borrowing costs next month.
Meanwhile, Ruben Carlo O. Asuncion, chief economist at UnionBank of the Philippines, said the movement may have been due to a recent directive by US President Donald J. Trump.
Most Asian currencies weakened against the dollar on Thursday as Mr. Trump raised the stakes in the trade dispute with Beijing with a threat to slap higher tariffs on Chinese goods worth $200 billion — to 25% from the initial 10%.
“The US move is again putting pressure on the probable adverse impact of a US-China trade war,” Mr. Asuncion added.
For Friday, Mr. Asuncion expects the peso to move between P53 and P53.20, while the second trader gave a P52.95-P53.15 range. — K.A.N. Vidal with Reuters

Stocks decline as foreign investors sell holdings

STOCKS tumbled on Thursday as foreign investors reversed their buying position, alongside the US Federal Reserve’s decision to keep rates unchanged.
The bellwether Philippine Stock Exchange (PSEi) index gave up 1% or 78.67 points to close at 7,759.55. The all-shares index likewise slumped 0.74% or 34.84 points to 4,644.68.
“It was a sell-on-news type of session after the FOMC (Federal Open Market Committee) reaffirmed a gradual hike and driving the risk appetite as the 10-year US treasury yield went above 3%,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a text message yesterday.
At the same time, foreign investors snapped their six-day buying position, with net sales reaching P241.70 million versus the P324.41 million recorded on Wednesday.
At the close of its two-day policy meeting on Wednesday, the Fed said it decided to keep rates steady, but signaled at increases in following meetings.
“No changes to rates as expected but there is some changes to the tone of the post-meeting statement. The description of recent economic developments was more upbeat, in line with recent data. In particular, the characterization of growth in economic activity was upgraded from “solid” to “strong,” as growth in household spending picked up “strongly,” Mr. Limlingan added.
Analysts expect the Fed to hike rates during its September and December meetings.
Wall Street indices ended mixed following the Fed’s announcement, with the Dow Jones Industrial Average dropping 0.32% or 81.37 points to 25,333.82. The S&P 500 index slipped 0.10% or 2.93 points to 2,813.36, while the Nasdaq Composite index added 0.46% or 35.50 points to 7,707.29.
Asian markets, meanwhile, ended in the red on Thursday, as US President Donald J. Trump threatened to intensify Washington’s trade war with China.
Back home, all sectoral indices incurred losses for the day, with the services sub-index leading losers with a decline of 1.22% or 18.61 points to 1,498.94. Holding firms fell 1.1% or 86.12 points to 7,746.14; industrials shed 0.86% or 94.90 points to 10,902.09; property dipped 0.68% or 26.29 points to 3,789.91; financials shed 0.49% or 9.24 points to 1,858.94; while mining and oil went down 0.21% or 22.32 points to 10,177.08.
Eagle Equities, Inc. President Joseph Y. Roxas, meanwhile, attributed the decrease to profit taking after the main index reached its high of three months and breached the 7,800 level on Wednesday.
Value turnover dropped to P4.93 billion yesterday from the P7.18 billion posted in the previous session after some 1.06 billion issues switched hands.
Decliners outpaced advancers, 120 to 76, while 46 issues remained unchanged.
Fourteen of the 20 most actively traded stocks declined, including JG Summit Holdings, Inc. (down 2.62% to P55.80); Ayala Land, Inc. (down 1.67% to P41.25); and BDO Unibank, Inc. (down 0.95% to P135.50). — Arra B. Francia

Porsche cars seized by Customs at NAIA

TWO used Porsche sports cars with a combined value of P28 million, consigned to Don Bosco Technical Institute of Makati, Inc., were seized on Aug. 2 at the Ninoy Aquino International Airport after almost a year since it was intercepted.
The Bureau of Customs (BoC) said the consignee has no exemption authority to import used motor vehicles, which is still required even if the intention is for educational and training purposes by the school.
“The seized one (1) unit used Porsche Boxster S and one (1) unit used Porsche Panamera 4S has an estimated street value of P10-million and P18-million, respectively,” said Customs Commissioner Isidro S. Lapeña.
In a letter dated July 9, 2018, lawyer Sonia S. Tapales, Chief of Import Regulations Division of Department of Trade and Industry (DTI) said that the two used Porsche cars violated the Executive Order No. 156 which prohibits the importation of used motor vehicles.
“Only special purpose vehicles can have exemptions like fire trucks, ambulances, funeral hearses, crane lorries, boom trucks, tanker trucks, reefers, street sweepers, mixers, garbage compactors and special purpose trucks/vehicles,” Mr. Lapeña said.

Arroyo, Duterte’s managers meet, tackle inflation

By Elijah Joseph C. Tubayan, Reporter
HOUSE SPEAKER Gloria Macapagal M, Arroyo recommended to the Duterte administration’s economic managers five anti-inflation measures during their meeting on Tuesday.
Albay 2nd district Rep. Clemente Joey S. Salceda in a social media post late Tuesday bared the discussions between Ms. Arroyo and economic managers in their meeting at the House of Representatives.
“The House under the leadership of Speaker Arroyo proposed to the EMG (economic managers group) measures considered based on the magnitude of a commodity’s contribution to the 5.2% [June] inflation,” said Mr. Salceda.
One such recommendation is that the Department of Energy “consider deferring z-ethane required additional content in oil products as well as the new feed-in-tariff allowance which increased from P0.18 to P0.26/kwh (kilowatt hour) as this alone contributed to a P3.16/kwhr increase in Meralco rates.”
Mr. Salceda noted this oil and electricity inflation contributed 0.7 percentage points to the June headline inflation, Mr. Salceda said.
For fish, which contributed 0.6 percentage points, the House Speaker recommended that the “President…,consider reduc(ing) tariff on fish imports to zero but (this) needs Congress to be in recess.”
Ms. Arroyo also recommended that the National Food Authority “purchase 500,000 MT (metric tons) of well-milled rice with staggered deliveries over 5-6 months,” as rice contributed 0.5 percentage points to inflation.
She also recommended that the President “consider reduc(ing) tariff” on meat imports — which contributed 0.3 — to zero, “but needs Congress to be in recess.”
On the peso depreciation, which weakened by 6.7% year-to-date, Ms. Arroyo said the central bank should study an additional 25 basis point hike in policy rates on top of the 25 basis point increases in May and June due to unanticipated inflationary expectations.
This is “to cleanse market (of) both consumer and business expectations (on) any potential speculative opportunistic content.”
For his part, Finance Secretary Carlos G. Dominguez III said last Tuesday the House leadership and economic managers agreed to prioritize the second package of the tax reform program.
Budget Secretary Benjamin E. Diokno also said yesterday in a TV interview that Ms. Arroyo “seems to be concerned about inflation,” noting that “she may be able to contribute to the conversation” as her presidency over a decade ago experienced high inflation.
Mr. Diokno said the price of oil hit about $135 per barrel during Ms. Arroyo’s time, compared to the $55-70 per barrel expected this year.
Besides Messrs. Dominguez and Diokno, Socioeconomic Planning Secretary Ernesto M. Pernia and Bangko Sentral Governor Nestor A. Espenilla attended the meeting with Ms. Arroyo, along with other congressmen.

ASEAN meet led by Singapore takes up South China Sea

By Camille A. Aguinaldo, Reporter
SOUTH CHINA SEA is back in the discussion table among Southeast Asian countries as foreign ministers gathered in Singapore on Thursday for the 51st Association of Southeast Asian Nations (ASEAN) Ministerial Meetings.
In a draft communique circulated among journalists on Thursday, ASEAN foreign ministers “took note of the concerns” raised by countries regarding the land reclamation activities in South China Sea.
“We discussed the matters relating to the South China Sea and took note of the concerns expressed in some countries on the land reclamations in the area, which have eroded trust and confidence, increased tensions and may undermine peace, security, and stability in the region,” the draft document read.
The Philippines held the chairmanship in the regional bloc last year, with Southeast Asian leaders also discussing the South China Sea where the Philippines, Malaysia, Vietnam, and Brunei are claimants in the disputed waters.
The 2017 ASEAN chairman’s statement dropped the reference of “concerns” over China’s militarization activities in the South China Sea.
“We discussed the matters relating to the South China Sea and took note of the improving relations between ASEAN and China,” the 2017 ASEAN chairman’s statement stated.
Meanwhile, last year’s joint communique of ASEAN foreign ministers read: “We discussed extensively the matters relating to the South China Sea and took note of the concerns expressed by some Ministers on the land reclamations and activities in the area, which have eroded trust and confidence, increased tensions and may undermine peace, security and stability in the region.”
Southeast Asian foreign ministers also “warmly welcomed” the improving ties between ASEAN and China, which encouraged negotiations for an effective Code of Conduct in the South China Sea (CoC). The Philippines is the new country coordinator for ASEAN-China dialogue relations.
They also reaffirmed the importance of maintaining and promoting peace and stability as well as the freedom of navigation and overflight in the region.
The joint communique is set to be presented on Saturday as the annual gathering among ASEAN foreign ministers concludes.
Aside from the South China Sea issue, foreign ministers also discussed the summit meeting last month between the United States and the host city of Singapore, where statements were made, including by Washington, that stepped up pressure on China’s militarization of the South China Sea.
The ministers urged the US and Singapore to continue pursuing peace and stability as well as a denuclearized Korean Peninsula.

Nominations extended for TOYM awards

NOMINATIONS for The Outstanding Young Men (TOYM) Awards have been extended to Aug. 31, organizers behind this award institution said on Tuesday.
TOYM Foundation, Inc. cited the extension as being “due to the bulk of nominations that we are receiving.” Thus, online nominations are extended until Aug. 31 and completion of portfolios with supporting documents and requirements until Sept. 15.
The nomination process begins with downloading the offline form for an advance copy of the requirements and information needed for the nomination, followed by nominations online as subject to the TOYM Search Committee’s verification.
Once the nomination is verified, the nominating party will receive an e-mail and may access his or her TOYM Account to build the nominee’s portfolio.
Qualified nominees are Filipinos who inspire the next generation of unselfish leaders, modern day heroes who made unselfish acts for the greater sense of purpose to see the country better, and ordinary men and women who made extraordinary contributions to society and to unite our communities through positive change.
Now on its 58th year, the TOYM Awards are an annual undertaking of JCI Philippines and co-sponsored by PLDT, the Gerry Roxas Foundation, Inc., and TOYM Foundation, Inc. For more information, check out the webpage toym.jci.org.ph and also follow the TOYM Facebook page.