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DENR sees Boracay businesses acting to correct violations

THE Department of Environment and Natural Resources (DENR) said some businesses on Boracay island have begun to address issues which left them in violation of environmental rules.

“To be fair, there are businesses that have successfully complied and rectified their violations. The point here is they have to comply with environmental laws. If they can’t comply, they have no business having business there,” Environment and Natural Resources Secretary Roy A. Cimatu said.

In a statement Tuesday, the DENR said it is not anti-business and is ensuring that Boracay remains a viable tourist destination.

Mr. Cimatu has said that the majority of business establishments in Boracay are compliant with environmental laws.

The DENR is still in the process of handing out sanctions to businesses that refuse to act upon their notices of violation (NoV) after the lapse of the remedial period. The department is hoping to complete this phase of enforcement by the end of March.

Since last week, a total of 181 NoVs to 161 establishments that were found to be repeat offenders, with most holding discharge permits as required by the Clean Water Act, or holding no such permits. Others were found not to hold permits as required by the Clean Air Act.

Four businesses were found to have violated both laws while seven businesses were unable to produce environmental clearance certificates.

The DENR was given six months to “rehabilitate” Boracay after establishments were have failed to treat their waste water.

Two weeks ago, Mr. Cimatu ordered the preliminary issuance of NoVs and closure of 300 establishments after President Rodrigo R. Duterte called Boracay a “cesspool” due to a number of environmental violations.

The demolition of structures on “no-build’ zones began on Saturday, starting with a resort’s 120-square meter viewing deck.

“Even if we are fast tracking our investigation processes, we will still follow the rules and will call those with NoVs to a technical conference, where they will need to present their remedial measures,” Mr. Cimatu said.

“If they fail to comply after that time, they could face closure, fines, or a cease and desist order, once we elevate their case to the Pollution Adjudication Board,” he added. — Anna Gabriela A. Mogato

Peso returns to P52:$1 level as investors await Powell speech

THE PESO weakened against the dollar anew on Tuesday, touching the P52 level once more, as market players remained cautious ahead of the testimony of Federal Reserve Chair Jerome H. Powell to the US Congress later in the day.

The local currency finished at P52.03 against the greenback yesterday, losing 17 centavos from its P51.86-per-dollar close on Monday.

The peso traded weaker the whole day, opening the session down at P51.95 versus the dollar, which was also its best showing for the day. Its intraday low, meanwhile, was at P52.07 to the greenback.

Dollars traded increased to $648.7 million on Tuesday from the $516 million that changed hands in the previous session.

Foreign exchange traders interviewed on Tuesday said the market was “fairly quiet” as they preferred to wait for cues from Mr. Powell’s testimony.

“[Yesterday, we saw a] very strong dollar against the peso. For the rest of the day, it was fairly quiet because the market is cautious ahead of Powell’s speech. But still, the momentum is trending higher,” a trader said by phone.

Mr. Powell’s speech scheduled yesterday night was set to be his first major appearance after he replaced Janet L. Yellen at the Fed’s helm.

Mr. Powell’s testimony is seen as critical for financial markets at a time many investors are nervous about the Fed’s policy normalization following years of stimulus after the financial crisis almost a decade ago.

For Ruben Carlo O. Asuncion, chief economist of UnionBank of the Philippines, a bullish view on the US economy is generally good for the Philippine economy.

“This means increasing exports, growing remittances and more business process outsourcing [firms],” Mr. Asuncion said, adding that Mr. Powell’s testimony could translate into a “stronger peso.”

Meanwhile, another trader said the local currency depreciated yesterday “Federal Reserve member Quarles hawkish remarks of US economic growth as markets find cues ahead of Federal Reserve chair Powell’s first testimony.”

On Monday, Federal Reserve Governor Randal K. Quarles, in a speech, affirmed market expectations of three interest rate hikes from the Fed this year.

“I am fairly optimistic about the current state of the economy. Along many dimensions, it has been quite some time since the economic environment has looked as favorable as it does now,” Mr. Quarles said in a conference in Washington DC.

He added that the American economic growth of around 3% is a “considerable step-up.”

For today, the first trader sees the peso moving between P52 and P52.20 against the dollar, while the second trader gave a wider forecast range of P51.85 to P52.25.

Most emerging Asian currencies, similar to the dollar, moved only marginally on Tuesday as markets awaited the first US congressional testimony by Mr. Powell.

The dollar edged down slightly, but was still above its three-year low. The dollar’s index against a basket of six major currencies inched down 0.1% to 89.728.

The 10-year US Treasuries yield eased to 2.864% dropping further from its four-year peak of 2.957% touched on Feb. 21. — K.A.N. Vidal with Reuters

The Men on Horseback

As we commemorate the 32nd anniversary of the EDSA Revolution, it brings to the fore a prominent player in the Philippine political landscape: the military. Aside from the Catholic Church, no other institution is regarded with such deference when it comes to legitimizing political rule in the country.

The Republic of the Philippines, even after 72 years of independence seems to have failed to consolidate itself as a nation state, imbuing on the military the burden of enforcing national unity in the face of internal dissent. This possibly makes the Philippine military one of the most politicized in the world.

After all, once a military engages in counterinsurgency, it is exposed to civilian influence and thus feudal political practices that further breed rebellion. This might result in a dangerous perception that could undermine civilian supremacy over the military.

Following the EDSA Revolution, attempts were made to bring the politicized military back into the barracks and prohibit it from intervening in the country’s affairs. One such attempt is to establish a system of congressional review of promotions of officers to colonel and flag rank.

Although in principle this was supposed to create a military that was professional and responsive to civilian rule, a new form of politicization occurred — the rise of careerism, evidenced in the way some junior officers seem to seek political patrons to guarantee a positive career path. This arrangement opened an opportunity for certain civilian entities to advance its political agenda by using cultivated contacts in the armed forces. EDSA 2 is illustrative of such scenario, which saw maneuverings perpetrated by outside interests that pushed segments and, eventually, the whole of the AFP to break from the Estrada administration.

With this in mind, Philippine military appears to have two characteristics: first, a traditional contempt of politicians due to their involvement in internal security operations; second, the politicization brought about by a mixture of careerism and political patronage that makes them vulnerable to outside influence and suggestions. This situation has caused many military disturbances in the decades following the original EDSA rebellion from 1987 onwards.

The coup attempts and mutinies of the late 1980s that culminated in the December 1989 battles in Metro Manila was followed by a brief respite in the 1990s only to come back to the fore just before the end of that decade as elements within the military became skeptical of the Estrada administration. By 2001, the military was egged on to execute the move that eventually led to the ouster of the sitting president.

monument

Predictably, military involvement in what seemed to be a king-making operation triggered a series of mutinies in the AFP well into the succeeding Arroyo administration, including Oakwood in 2003, Fort Bonifacio in 2006 and the Manila Peninsula siege in 2007. The second decade of the 21st century has fortunately been quiet so far.

What are the lessons that these realities give us?

Considering the incidents in the 1980s, the military as an institution detests communism. Many military complaints in the 1980s arose supposedly to combat alleged communist influence into the first Aquino administration. Thus, one must never overplay one’s hand in testing the tolerance level of the Philippine military to civilian government overtures to communists, whether local or foreign in nature.

The incidents in the late 1990s up to the first decade of the 21st century meanwhile tell us that high casualty rates and corruption create an explosive mix in the Philippine military.

In 2000, the inconclusive Abubakar Campaign resulted in higher than the usual casualty rates for the military. This period also saw corruption cases against the Estrada administration, both contributing to military involvement in EDSA 2. The corruption allegations and counterinsurgency operations during the Arroyo administration also created a conducive environment for mutinies to thrive in. Thus, one must avoid creating such a situation in current times.

However, as it is the tendency of Filipinos to forget their past, one wonders if such lessons will still be remembered today.

 

Jose Antonio Custodio is a Non-Resident Security Fellow of Stratbase ADR Institute.

Dreaming bigger: How platform thinking can level up the Philippines

By Eddie Ybañez

OVER the long weekend that began with Chinese New Year on Friday, Feb. 21, 2017, I had the privilege of spending time with the twelve teams who were competing in Startup Weekend Cebu Youth Edition 2018.

Like the tens of thousands of other teams who compete in Startup Weekend competitions across the globe every year, their goal was the same: Conceptualize a start-up over the 48-hour duration of the contest and then pitch the idea before a panel of judges during the closing of the event.

As the teams formed and cofounders discussed potential business ideas, I realized that their success hinged on their understanding of a single word: start-up.

With the tech ecosystem in Manila and in Cebu still nascent, emerging in the last five to ten years, and our business curriculum still reflecting more traditional pursuits and paradigms, the term “start-up” would still be relatively new to most participants. At best, they would have acquired the term through osmosis — by reading headlines of Silicon Valley start-ups getting acquired, or in due turn, hearing that their friends wanted to build their own startups in the Philippines — but never have it explicitly defined.

I speak from experience, too.

When I myself joined Startup Weekend Cebu in 2012, I only had a vague notion of what a start-up was. Back then to me a start-up was simply any organization that wanted to solve a problem through technology, and my entry into the competition reflected that: Together with cofounder Kenneth Baylosis, we imagined a value-added service that enabled Filipinos to hail a cab to their location completely through text messaging. Over the last six years, this idea has since evolved, and Micab, as we now call our company, allows Filipinos in Cebu, Davao, Iloilo, and Manila to hail a taxi through our Android or iOS app.

Based on my own experiences, I would like to define start-up in the way that I think will be most helpful to both Filipino founders and our country at large, beginning by explaining first what it is not. A startup is not simply any business with a tech or digital component, as I myself originally thought in 2012. For example, if you own a neighborhood lavanderia and you wish to open up online booking for pick-up and delivery via a Web site, I would argue that adding this e-commerce functionality would not classify it as a start-up.

I would instead encourage Filipinos to think of a start-up as a platform, one with two sets of user groups — usually buyers and sellers, or in cases like Micab, users and providers. Your role, as start-up founder, is to facilitate interaction between the two user groups, and in doing so, you would address a market inefficiency in the Philippines.

Let’s return to the lavanderia example.

If instead of simply choosing to create a booking system for your own lavanderia’s pick-up and delivery, but instead launched a platform that equipped all lavanderias across Metro Manila with a similar, out-of-the-box system, I would argue that you are in fact a start-up.

Why? Because you’re addressing a real pain point in the country, not just for yourself but potentially hundreds of thousands people just like you: You’re solving a problem at scale. I myself experienced what it was like to combine a traditional laundry shop with technology, when I founded Laundrytopia in the Pasong Tamo area of Makati City as an experiment to understand how I could incorporate Micab with it. That Laundrytopia expanded to one production house and three branches in a single year of operations just goes to prove my point: Platforms are the way to go.

Some may wonder why I care so much about redefining the Philippine start-up as the Philippine platform.

Since my own participation in Startup Weekend Cebu in 2012 and the one just last weekend, I’ve attended dozens of similar competitions, and to the extent that I have constructive feedback for some of the participants, it’s almost always the same: Their ideas are not big enough. Often they amount to just digitizing a service or business they already provide, such as selling clothes through a website, or offering their services through an app. Take my constructive criticism of these ideas as evidence of my absolute faith in Filipino talent and ingenuity: We can do so much more.

If on the other hand, we get all our aspiring founders to think of their startup as a platform, and they’re building it to address a market inefficiency between two large user groups, we’ll get a new generation of Filipinos solving the biggest problems facing our country. This is what I myself am trying to humbly accomplish through Micab and my dream of “Taxi 2.0”: I want to make it safer, easier, and more convenient for passengers in search of a cab with drivers in search of passengers.

There are thousands of more market inefficiencies in our country just waiting to be solved by entrepreneurs bold enough to believe they can, and that’s why I’d like to leave them with but one thought, most especially to the great future founders of the Philippines who won at Startup Weekend Cebu, including Where’s my Bus? (1st place), Finding Doctor (2nd place), Co.Lab (3rd place), Lakbay (4th place) and Transugbo (Special Award: Best Pitch): Set out in search of not what you can build, but in whom in the country you can unite.

 

Eddie Ybañez is the CEO and cofounder of taxi-hailing application Micab, and he envisions the creation of a “Taxi 2.0” for the country’s riding public.

Financial institutions towards cyber resilience

Businesses have continued to rely heavily on the use of Information Technology (IT) for efficient delivery of products and services in response to emerging market trends and evolving client needs. However, as financial institutions tend to keep pace, there is also an increased exposure to cyber-threats and attacks.

Recently, the public has been quick to raise concerns over suspicious and unauthorized transactions involving their deposits in certain large Philippine banking corporations.

With the use of social media platforms, customer complaints have spread and have become publicized quickly. Accordingly, cyber threats and attacks confronting the financial services industry pose added risks that can undermine public trust and confidence in the financial system, which, then, may lead to adverse effects on the overall economic and financial stability of the country.

Recognizing the risks in the rapidly evolving technology landscape, the Monetary Board of the Bangko Sentral ng Pilipinas (BSP) issued Circular No. 982, Series of 2017, on Enhanced Guidelines on Information Security Management (the Guidelines) covering BSP Supervised Financial Institutions (BSFI).

Pursuant to the Guidelines, the BSP shall determine the IT profile of each BSFI, and thereafter classify them as “Complex,” “Moderate,” or “Simple” by considering several factors such as, but not limited to, the degree of automation of core processes and applications; the size of branch networks; the aggressiveness in providing digital financial products and services; the extent of outsourcing services; the systemic importance of a BSFI, and the volume, type, and severity of cyberattacks and fraud targeting a specific BSFI.

The goal of the guidelines is to ensure that every BSFI shall have an information security appropriate to its IT profile. As such, the Guidelines require the establishment of Information Security Strategic Plan (ISSP), aligned with the BSFI’s business plan. It is essentially a road map guiding the transformation of the current state of the IT security to the desired state.

To implement the ISSP, a comprehensive, well-designed, and effective Information Security Program (ISP) must be put in place which shall require not only the strong support of the Board of Directors (Board) and the Senior Management, but also the cooperation of all stakeholders.

The Senior Management is generally responsible and accountable in executing the ISSP and ISP within the bounds and threshold set by the Board. Hence, both the ISP and ISSP must clearly identify the direction of the Board and Senior Management on cybersecurity.

The Senior Management also appoints the Chief Information Security Officer (CISO) who shall be responsible for the organization-wide ISP. The CISO shall have sufficient independence to perform his mandate, and thus, must be reporting to the Board or designated committee. This notwithstanding, crucial roles are expected to be properly established and performed in the entire organization specifically the IT department, business line managers, security department, and other employees.

An integral part of the ISP and enterprise-wide risk management system is the Information Security Risk Management (ISRM) framework which is a dynamic interplay of people, policies and processes, and technology.

The ISRM framework is founded upon the underlying principles of strong leadership and effective Information Security governance and oversight; integrated, holistic and risk-based approach; and cyber-threat intelligence and collaboration.

The Guidelines detail the principle of Continuing Cycle which involves the following steps:

Identify. This starting point of the cycle entails understanding of the business process and functions to determine the system’s vulnerability to cyber-related risks.

Prevent. Upon assessment of the cybersecurity and cyber risks, mechanisms for prevention or protection from cyber-threats must be designed and implemented. This involves spreading cybersecurity awareness as well as physical and technical controls to ensure confidentiality, integrity and availability of information.

Detect. This phase involves the prompt detection of anomalous activities through alerts and notifications.

Respond. Upon the confirmation of an occurrence of cyberattack, the BSFI concerned is expected to respond as quickly as possible to prevent it from further happening considering its rapid effects.

Recover. This phase encompasses the resumption of activities of the BSFI until full recovery is obtained. Recovery measures include establishment of back-up facilities and alternate sites with acceptable levels of security.

Test. The BSFIs need to assess whether the security measures implemented are effective as intended. As the goal is to have cybersecurity commensurate with the IT profile complexity of the BSFI, the BSFIs should assess their own IT profile classification on an ongoing basis notwithstanding the assessment and classification process conducted by the BSP.

In complying with the Guidelines, BSFIs are reminded to fully consider and observe relevant laws and regulations such as The Law on Secrecy of Bank Deposits (RA 1405) and the Data Privacy Act of 2012 (RA 10173). Hopefully, with the enhanced Guidelines, cyberattacks will be promptly responded to and properly addressed, if not, totally prevented.

The views and opinions expressed in this article are those of the author. This article is for general informational and educational purposes, and not offered as, and does not constitute, legal advice or legal opinion.

 

Anne Caroline C. Bugayong is an Associate of the Corporate and Special Projects Department of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

acbugayong@accralaw.com

(632) 830-8000

The Wild, Wild West Wing

The West Wing of the White House is where the office of the president of the United States is located, along with other executive offices. In the wake of the recent mass shooting at a high school in Florida, pundits have sarcastically suggested calling the official quarters of President Donald Trump The Wild, Wild West Wing.

The Florida shooting claimed the lives of 17 people, most of them students. Even more alarming is the fact that it was the 18th school mass shooting in 2018 alone or an average of 3 per week.

Trump’s solution to this seeming epidemic? Arm the teachers!!!

No kidding!!??

If Trump has his way, in addition to the teachers’ pedagogic responsibilities, they must also ride shotgun in school (in the old American West, providing security for the stagecoaches was called riding shotgun).

That would really be a retrogression to the wild, wild West romanticized in American folklore and immortalized by Hollywood and in TV action serials.

Sensible state and national leaders and the media have described Trump’s proposal as hare-brained. Like wanting to put out a fire by dousing it with gasoline. Not surprisingly, leaders of the National Rifle Association are all for it. They are, after all, one of the main reasons for the pervasive gun culture in the US, ostensibly in the name of protecting the second amendment right of American citizens to keep and bear arms.

America has more guns than people, according to statistics. Gun ownership was estimated at 352 million guns in 2013 vs. a population of 312 million, and projected to 357 million guns vs. a population of 324,459,463 in 2017. That’s more than any country in the world. While the US has only 4.4% of world population, it accounts for 42% of the world’s guns.

In one study (the figures vary by year), the US was shown to have 101 guns for every 100 population. In comparison, the Philippines was listed at 4.7 guns per 100. Of course, this surely does not include unregistered firearms, particularly those in the armories of private armies of politicians, not to mention the paltiks produced by the artisans in Danao, Cebu province.

The easy accessibility of firearms, including automatic weapons like the AR-15 used in the Florida killings, has been identified in most studies as the main reason for the frequency of mass shootings in the US and the horrific number of fatalities — not just in schools but in other public places (there were 55 killed in a mass shooting during a concert in Las Vegas in late 2017).

In a rather cold assessment of the killing epidemic, analysts point out that the proliferation of killings is not because America accounts for more crimes than other countries. There are simply more fatalities per incident because of the use of guns. According to them, using knives would result in fewer deaths — as if this is any comfort for the defenseless citizenry.

Because Britain and Australia experienced mass shootings in 1987 and 1996, respectively, the two countries instituted strict gun control laws and have not experienced the same grief as the US since then.

Trump, the NRA, and the Republicans who currently control both houses of Congress have borne the onus for the lack of strict gun control legislation. But even at the time that the Democrats were dominant on Capitol Hill and in the White, the best that President Barack Obama could do was to mandate that people with severe mental disabilities should be subjected to FBI background checks, thus making it difficult for them to buy guns.

It is said that the reason the Democrats backed off from more aggressive gun control measures was because they had just pushed through Obamacare and were eyeing immigration reform, and they were worried that the right-wing would get so aroused as to cost the Democrats the mid-term elections. In other words, both parties have been playing politics at the cost of the lives of citizens.

Disappointingly, the Democrats’ wasted opportunity to introduce gun control legislation happened just two years after the Virginia Tech massacre where a student killed 32 people and wounded 17. It was also the 10th anniversary of the Columbine High School shooting in Colorado in which two young men killed 12 fellow students and one teacher and wounded 24.

Said one skeptical British journalist, Dan Hodges, about the triumph of the gun lobby in spite of the 2012 massacre of 20 students at the Sandy Hook Elementary School in Connecticut, “In retrospect, Sandy Hook marked the end of the US gun control debate. Once America decided killing children was bearable, it was over.”

In his official statement following the Florida killings, Trump attributed the incident to mental illness. It was a mentally disturbed expelled student who had earlier shown signs of his homicidal tendencies but was not monitored by authorities. Nikolas Cruz, the shooter, had 10 guns in his possession, including the AR-15.

Yet Trump had just repealed the Obama-era initiative that precisely would have made it difficult for those with psychological problems like Cruz to have easy access to guns. Trump’s expression of concern for the victims and their families was, thus, an exercise in hypocrisy.

Concerning Trump’s proposal to arm school teachers, late night talk show hosts have echoed Trump’s allusion to mental disability and have unkindly suggested that it is he who has a mental problem.

In his message of condolence to the Florida shooting victims, Trump made no mention of gun controls, perhaps not wanting to upset the NRA.

However, he walked back a bit on his position, subsequently conceding the need for checking the criminal records of prospective gun buyers, the need to ban upgrading legal weapons into machine guns, and the need to raise to 21 (from 18) the minimum age for buying guns. Apparently the heat of public opinion, which has become increasingly in favor of more stringent gun controls, has caused Trump to tread more gingerly on the issue.

As of now, there are signs that both Republicans and Democrats may be less resistant to gun control legislation because of the militancy of the students in Florida, supported by high school students across the country. However, it is feared that this zeal may be short-lived.

And as long as the NRA and the pro-gun politicians keep their heads out of the line of sight, they will ultimately prevail, as in the past.

On the other hand, the proximity of the next mid-term elections, in which the students have vowed to campaign aggressively against candidates supporting the gun lobby, may put the fear of losing in the hearts of the politicians, especially the reelectionists. The Republicans have been having enough problems with Trump’s hijinks and are beginning to feel insecure, without the gun issue adding to their woes.

And that is not yet counting whatever Special Counsel Bob Mueller may spring on Trump and his campaign associates in the coming weeks or months.

Indeed, there appears to be no better time to push for gun controls than now. Hopefully, America’s youth will sustain their militancy and allow it to peak into the US version of the Philippines’ First Quarter Storm.

 

Greg B. Macabenta is an advertising and communications man shuttling between San Francisco and Manila and providing unique insights on issues from both perspectives.

gregmacabenta@hotmail.com

Sereno on leave as impeachment hearings end

CHIEF JUSTICE Maria Lourdes PA. Sereno will take a 15-day “wellness leave” beginning Thursday, March 1, according to lawyer Jojo A. Lacanilao, one of her spokespersons.

Ms. Sereno’s announced leave comes amid the conclusion Tuesday of the inquiry by the House committee on justice on lawyer Lorenzo G. Gadon’s impeachment complaint against the Chief Justice.

This prompted the committee to approve a motion calling for a show-cause order on Mr. Lacanilao, who himself had earlier informed the committee on Tuesday that Ms. Sereno has a “scheduled…wellness leave (in) March.”

“Desisyon niya, personal niya, na i-advance ’yung scheduled wellness leave niya sa March to a few weeks earlier. ’Yun ’yung desisyon niya. (It was her personal decision to move ahead her scheduled leave),” Mr. Lacanilao said of Ms. Sereno’s leave, which was initially scheduled on March 12 to 23.

‘INDEFINITE LEAVE’
But according to Oriental Mindoro Rep. Reynaldo V. Umali, who heads the committee, it was the Supreme Court (SC) en banc that “forced” Ms. Sereno to go on leave, adding that this is an “indefinite leave.”

“Kasinungalingan ’yung sinasabing wellness leave (This so-called wellness leave is a lie). It is an indefinite leave, and I hate to say it, this was because the en banc forced her into it,” Mr. Umali told reporters, reading to them a text message: “Justices said that what was agreed upon during the en banc was indefinite leave by the CJ, not just a wellness leave, as her lawyers claimed.”

Deputy Speaker Gwendolyn F. Garcia, for her part, criticized Mr. Lacanilao’s version of Ms. Sereno’s leave as “fake news.”

But lawyer Josalee S. Deinla, also a spokesperson of Ms. Sereno, said in a text message that the Chief Justice “intends to resume her post after her leave. She (has) no plans of resigning.”

Ms. Sereno is accused of culpable violation of the Constitution, betrayal of public trust, corruption, and other crimes.

During the last day of the deliberation on probable cause on the impeachment case, Mr. Umali said the “clarificatory hearings have proven that constitutional processes and mechanisms are in place and can function without causing conflict between the branches of the government.”

The hearings, which began November last year, were prolonged “due to the constraints of the availability of several key persons including the members of the Supreme Court,” he noted.

Among the justices who attended the hearings are Teresita J. Leonardo-De Castro, Diosdado M. Peralta, Francis H. Jardeleza, Noel G. Tijam, Samuel R. Martires, Mariano C. del Castillo, and Lucas P. Bersamin. Retired Associate Justice Arturo D. Brion also appeared as resource person.

PSYCHOLOGICAL REPORT
During its last day, the House panel granted the motion to conduct an executive session to hear the testimonies of five psychiatrists who evaluated Ms. Sereno, namely Genuina C. Ranoy, Dulce Lizza R. Sahagun, Geraldine Tria, Maria Suerte Caguinguin, and Bernadet de Leon-Jamon. The House also granted them legislative immunity.

In a statement, Mr. Lacanilao said: “Congress’ concerns about removal from office should focus on the specific grounds stated in the Constitution, and the psychological report is not one of them.”

Mr. Lacanilao also noted that “expanding and redefining the grounds for impeachment is itself a violation of the constitutional provision.”

For his part, Deputy Commissioner Arnel S.D. Guballa of the Bureau of Internal Revenue (BIR) said that Ms. Sereno’s legal fees for the PIATCO case amounted to P32 million, as opposed to Mr. Gadon’s claim of P37 million and Ms. Sereno’s own estimate of P30 million.

“CJ Sereno substantially declared all income (legal fees) from the PIATCO case in her ITRs (income tax returns) from years 2004 to 2009, but there were certain discrepancies,” Mr. Guballa said, adding that the Chief Justice “failed to pay all the appropriate taxes.”

To this, Ms. Sereno’s camp commented that the BIR did not call her attention to the alleged discrepancies in her ITR filings.

“As government’s co-legal counsel in the PIATCO cases from 2004-2009, the Chief Justice paid a total of P8.67 million for the income earned during these years,” her spokepersons said in a statement.

PREPARING FOR SENATE TRIAL
Mr. Lacanilao, for his part said, “Wala pong planong magresign si Sereno when she’s preparing for this sa Senado. Doon na lang din tayo magkikita kung matapos na po dito sa House of Representatives at doon po maririnig niyo ang storya ni Chief Justice Sereno (Sereno has no plan of resigning when she’s been preparing for [her case when it reaches] the Senate. We will see each other there once we are done here in the House of Representatives and you will hear there Chief Justice Sereno’s story).”

Sought for comment regarding the anticipated trial, Senate President Aquilino Martin L. Pimentel III said his chamber is now in “preparation mode.”

For his part, Majority Leader Vicente C. Sotto III anticipates a trial soon after President Rodrigo R. Duterte’s State of the Nation Address. — main reports by Dane Angelo M. Enerio and Minde Nyl R. dela Cruz with Camille A. Aguinaldo

Duterte: Compromise on ‘endo’ needed

By Arjay L. Balinbin

PRESIDENT Rodrigo R. Duterte, who promised to end labor contractualization or “endo” during his 2016 presidential campaign, announced on Monday, Feb. 26, that he may not be able to give what labor groups want, stressing that a compromise is needed.

“I don’t think that I can really give them all because we cannot force the capitalists [to absorb their workers]. Maybe [their employers] don’t have money, or they don’t like them, or they are lazy,” Mr. Duterte said during the inauguration of the ARMSCOR Shooting Center, Inc. (ASCI) in Davao City.

“Don’t make it hard for them to run the business the way they like it because that’s their money. So something of a compromise must be…maybe acceptable to everybody,” he added.

Mr. Duterte pointed out that only a few businesses in the country can absorb workers, noting as well the “sheer number of people who need jobs.”

“So they [the employers] want some radical changes,” he said.

Mr. Duterte also cited other countries “like Hong Kong and the United States, (where, if) you work for a certain guy and if he does not like the quality that you produce, you get out, you get paid, separated and that’s it. Ganun lang sana (That’s how they are).”

Earlier this month, Mr. Duterte asked for more time to study a new proposed executive order (EO) on contractualization drafted by labor groups.

Labor Secretary Silvestre H. Bello III had also announced that the President will be signing the said EO “by March.”

In a phone interview, Trade Union Congress of the Philippines (TUCP) vice-president Angelita D. Senorin said:   “That’s from his [the President’s] campaign. He said he would put an end to ‘endo.’ We don’t agree with the compromise, because the security of tenure of our employees should never be compromised.”

“Some provisions in the draft EO that (were) submitted to the President earlier this month “were changed,” she added.

“Nung dina-draft ’yong EO, may mga napagkasunduan na noong una, and then noong na-finalize during sa meeting sa Malacañang with Secretaries, may ilang points na nabago.” (When the EO was being drafted, there were already some provisions already agreed on, and when it was finalized during the meeting at Malacañang with the Cabinet Secretaries, some points were changed.)

Asked to specify which provisions were changed, Ms. Senorin cited Article 290 of the said draft EO.

“Binago ’yong (They changed the provision) under article 290, saying the Secretary of Labor, in consultation with the National Tripartite Industry Peace Council (TIPC), shall determine by appropriate regulation activities which may be contracted out.”

“Parang ang dating dito ay binibigyan ng full power ang Secretary of Labor to determine kung ano ’yong pwedeng i-contract out at ano ’yong hindi,” she argued.(It sounds like the Secretary of Labor was given the full power to determine which jobs can and cannot be contracted out.)

The labor group leader likewise explained that if the nature of a job is “necessary and desirable” as far as the company is concerned, contracting this out is “not allowed.”

“Hindi allowed kapagka necessary and desirable ’yung nature ng trabaho sa klase ng serbisyo ng kumpanya,” she said.

“Kagaya ng electronics, assembly lines, ’yung nandon sa production who are necessary sa business. Ang dapat lang na kinocontractual out ay yung kagaya ng nasa janitorial services, securities, etc.,” Ms. Senorin added. (Like those in electronics, assembly lines, or those in production [which] are necessary to business. The only workers who can be contracted out are janitors, securities, etc.)

For his part, Employers Confederation of the Philippines ( ECoP) President Donald G. Dee argued that “the labor groups are not accepting what they originally accepted.”

“The labor group is very one-sided. The President has repeatedly said you make [or draft] whatever you want but make sure [he] can sign it,” Mr. Dee said in a phone interview.

Asserting that labor groups had already agreed to the draft EO before it was submitted to the President, Mr. Dee stressed that the labor groups “are changing it, and they are making it very one-sided or very radical.”

He also noted that “it’s impossible to work; and, therefore, the President doesn’t want it because what he is concerned with is it must be fair….”

“There was already a compromise in the EO1, then there was another EO. It was a compromise agreement. Now, they don’t want it also. They are proposing to the President a new EO, which has nothing to do with the compromise version. They don’t want the compromise version anymore. You cannot do that.”

“Para bang meeting na kami ng meeting, ilang buwan na kaming nagmi-meeting, tapos ano? Nagbago isip natin eh.” (It’s like we are always meeting. We have been meeting for how many months, then what? They change their minds.)

Mr. Dee likewise explained that both the labor groups and the employers’ alliance have already “agreed that ‘endo’ is definitely outlawed.” However, “it (management) is allowed to contract out,” he added.

“It depends on the company which jobs they want to contract out. There’s no provision in contracting out,” he said.

Asked who decides which jobs can be contracted out, Mr. Dee said: “All companies are free to go into any kinds of arrangements. That’s a management decision.”

“Of course, where in the world did you see that I am the employer and I cannot hire [which workers I want to hire]? Sino papayag n’yan? (Who will agree to that?),” he said, noting as well that “it (hiring) has to be rule-based.”

When asked to confirm Ms. Senorin’s claim that a provision under article 290 in the EO was changed, Mr. Dee said: “I haven’t seen it yet.”

As for Mr. Duterte’s remarks saying that employers cannot be forced to keep their workers, Mr. Dee said: “If you don’t like them anymore, then you have to pay them separation pay as stated in the Labor Code, (which) is adopted in the EO. We can do anything as long as it’s within the law. If it’s outside the law, it’s impossible to happen.”

Dismissed PNP chief Purisima charged with perjury over SALNs

THE Office of the Ombudsman has charged dismissed Philippine National Police (PNP) chief Alan L. M. Purisima with eight counts of perjury before the Sandiganbayan in connection with alleged misdeclarations in his Statements of Assets, Liabilities and Net Worth (SALNs).

According to the charge sheets against Mr. Purisima, he failed to declare the property of his wife Maria Ramona Lydia Purisima, as covered by Certificate of Land Ownership CA-25916, in his 2006 and 2007 SALNs.

In his 2008 SALN, Mr. Purisima failed to declare the aforementioned property by his wife as well as her other properties as covered by CLOA VOS-28452 and through a May 12, 2008, Deed of Donation.

In his 2009 SALN, he failed to declare the said properties as well as his property as covered by CLOA VOS-28012.

In his 2011 SALN, Mr. Purisima failed to declare the said properties as well as his firearms, “a(n) HPRFL BMSTR 223 and (a) Pistol ST 40.”

In his 2012 SALN, he failed to declare the said properties as well as the aforementioned firearms plus a CZ 9MM SPO1 Shadow.

And in his 2013 SALN, Mr. Purisima failed to declare the said properties and another as covered by CARP-2013000371, as well as his firearms plus an HPRFL UDMC 556.

Bail of P6,000 for each count or a total of P48,000 was recommended for Mr. Purisima.

1st international flight to Cagayan airport set Mar. 23

THE Cagayan North International Airport (CNIA) in Lal-lo town will receive its first international commercial flight from Macau on March 23, the Cagayan Economic Zone Authority (CEZA) announced yesterday. “We are ready to open CNIA to East Asia and the North Pacific to commercial flights,” CEZA Administrator and Chief Executive Officer Raul L. Lambino is quoted in a statement. The first domestic flight by Cebu Pacific, meanwhile, is planned for April. Mr. Lambino said the opening of the upgraded CNIA sends “a strong signal to potential locators from Asia and North America that it is no longer business as usual at CEZA.” In a recent meeting with the Regional Development Council, Mr. Lambino reported that CEZA has listed priority projects under its new redeveloped Medium-Term Development Plan, including a tertiary medical center, CEZA’s corporate center, convention center, boutique hotel and a financial technologies (fintech) park. The long-term goal, he added, is developing CEZA into the “premier hub for the continuous development of these fintech.” — Janina C. Lim

Porsche’s posh hatch purveys more space, tech

Text and photos by Kap Maceda Aguila

PORSCHE registered another banner year in 2017 — shipping 246,375 vehicles to its growing stable of customers around the world. This comes on the heels of a record-breaking 2016, with the company growing the consolidated sales figure by 4%. In a news release, the brand attributes a “significant boost… from approximately 28,000 deliveries of the new Panamera; an increase of 83% compared to the previous year.”

The Porsche Panamera was something of a beautiful aberration for a marque traditionally known more for its two-door sports cars. But then Porsche always seems to be rewarded for its risk-taking — as evidenced most spectacularly by the resounding success of a foray into the sport-ute segment via the Cayenne (first produced in 2002 and has since moved more than 770,000 units) and, later, the Macan (2014).

A luxury four-door hatch that brings the sporty performance of its smaller Porsche siblings, the Panamera supplements the formula with the luxury of space and added accoutrements. The first-generation, sold from 2010 to 2016, helped broaden the appeal of Porsche even as it angered purists who had also railed against the Cayenne. Still, the success of the two models vindicated the business model and appeared not to have diluted the mystique or appeal of the German brand.

The Panamera’s new generation was unveiled last year, with observers highly critical of what had been described as the outgoing model’s “elephantine” rear heaving a sigh of relief that the new form is much more pleasing to the eyes. It’s lighter, more powerful, and chockfull of technologies to both impress and pamper passengers while giving them track-worthy performance.

Porsche Philippines now brings in two variants of the new Panamera to further spoil customers with choices: the Panamera 4 Sport Turismo and the Panamera Turbo Sport Turismo. The former is an all-wheel-drive vehicle powered by a turbocharged 3.0-liter, six-cylinder engine producing 330 hp and 450 Nm — mated to an eight-speed Porsche PDK transmission. The Turbo variant is powered by a twin-turbocharged 4.0-liter, eight-cylinder engine good for 550 hp and 770 Nm. It is paired with the same eight-speed PDK, and is an all-wheel-drive variant as well.

The Panamera Sport Turismo, according to Porsche, boasts a “4+1 seat concept option, lots of headroom and legroom, and large luggage compartment volume.” The vehicle is 5,049 millimeters long, 1,428 millimeters tall, and 1,937 millimeters wide, with a 2,950-millimeter wheelbase. An adaptive roof spoiler adjusts its angle depending on “the driving situation and selected vehicle settings, and generates an additional down force of up to 50 kilograms on the rear axle.” Porsche said the Panamera 4 Sport Turismo can top 264 kph, the Panamera Turbo Sport Turismo 304 kph.

The new Sport Turismo marks the first time the Panamera gets three rear seats. Reported Porsche; “The two outside seats take the form of individual seats — in keeping with the model line’s claim for sporty performance with maximum passenger comfort — thereby producing a 2+1 configuration at the rear.”

Meanwhile, rear-compartment accessibility and convenience have been enhanced through an electrically operated, wide-opening tailgate. Its 520-liter storage capacity is higher over the sports saloon’s by 20 liters. “When loaded up to roof level and with the rear seats folded down, the gains amount to around 50 liters,” added Porsche.

“The launch of the Panamera Sport Turismo models here in the Philippines is only a sneak preview of what Porsche has in store for this year. I am excited to bring this iconic German brand to greater heights as it continues on its path to success this 2018,” said Porsche Philippines President and CEO Roberto T. Coyiuto III.

The buzz on the Benz bus

Text and photos by Aries B. Espinosa

FILIPINO commuters will soon have something to look forward to in their daily grind to and from work. A fleet of Mercedes-Benz buses have been shipped in, and are now ready for various transport applications.

Auto Nation Group, Inc. (ANG) has just introduced the Mercedes-Benz OF 917 Midi Bus, a high-deck passenger coach highlighting the brand’s expanding product lineup in the commercial vehicle segment in the Philippines. And on Feb. 15 one such bus was taken for a tour that started from the ANG headquarters in Greenhills, EDSA, to Nuvali in Santa Rosa City in Laguna, and back.

Although the road trip lasted more than four hours both ways because of the payday traffic, the passengers felt generally comfortable throughout, thanks to the 32 reclining seats and high-capacity roof-mounted air-conditioning. But what caught the group’s attention first — apart from the big Mercedes-Benz logo at the rear — was the OF 917 Midi Bus’ nine-meter length. This slots the vehicle right between that of a mini-bus (six meters) and a full-size bus (12 meters).

Joseph A.C. Ayllon, assistant vice-president for public elations at ANG, explained the OF 917 has been “designed and manufactured with the Asian market in mind.”

With the engine produced by Mercedes-Benz in Germany, the chassis produced in India, and the Alpha M8 body by TruckQuip SDA BHD of Malaysia, the OF 917 offers more space and capacity than vans and “coasters,” yet still maneuverable in the Philippines’ urban and rural streets.

The OF 917 power plant features a Euro5-compliant, inline four-cylinder, turbocharged and intercooled diesel engine that puts out 170 hp at 2,500 rpm and 520 Nm at 1,500 rpm. The OF 917 is said to achieve a fuel efficiency rating of four to five kilometers per liter, which ANG said is considerably better than that achieved by other buses.

The second attention-getter was the unique 4,783-liter rear compartment luggage space, positioned where the bus engine would normally be found, effectively making the OF 917 as having among the largest storage capacities in its class.

But we won’t see the OF 917 in great numbers anytime soon. Not this year, at least. Don Ramos, assistant vice-president for commercial vehicles of the ANG, disclosed that the company is expecting to supply around 20 units this year.

However, he was quick to add that the market “will definitely grow.”

“There are a lot of transport applications for the OF 917: We’re looking at feeder buses; at the P2P packages that the government recently offered; shuttle buses for companies; school buses, and also for airport shuttles. The interiors of the OF 917 are flexible, and we can reconfigure them based on what the customer needs.”

Mr. Ramos also revealed the OF 917 standard edition Midi Bus price is P4.9 million.

LUXURY VAN
During the same activity, ANG also introduced the Mercedes-Benz Sprinter Luxury Coach, the premium version of its passenger van. The nine-seat Sprinter is powered by a 2.1-liter, four-cylinder, two-stage turbocharged diesel engine that puts out 163 hp, paired with a six-speed manual transmission to deliver what is claimed as best-in-class fuel efficiency.

What sets the Sprinter apart is its luxurious interior, making each passenger feel like a rock star. “The Sprinter’s refined cabin epitomizes the prestige of the brand,” said Mr. Ayllon, as he invited guests to look inside the Sprinter displayed at the Greenhills showroom.

By the time the group returned to the showroom after the tour in the OF 917 bus, the Sprinter showed by Mr. Ayllon was gone. It sold for P5.99 million.

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