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EICC releases guidelines for EO 30 availment

THE ENERGY Investment Coordinating Council (EICC) has issued an advisory to power developers on how their projects can qualify under Executive Order (EO)30, the law that classifies a project as one of national significance and secure speedier regulatory approval.

“As provided in Section 2 of the EO 30, the DoE shall identify and endorse the energy projects to be considered as Energy Projects of National Significance (EPNS),” the Department of Energy (DoE) said.

The EICC, which is headed by the DoE, will require interested applicants or proponents to justify “in a clear and unequivocal manner” how their projects are in consonance with the goals and objects of the Philippine Energy Plan (PEP), the blueprint for the country’s long-term energy outlook.

The proposed projects should be included in the list of projects embodied in the PEP.

The proponent should submit a letter of intent addressed to the Energy secretary along with a copy to the DoE director of the energy policy and planning bureau.

“The proponent must be able to establish in a clear and detailed manner that the proposed project is qualified to be declared as EPNS,” it said, citing seven “attributes” for qualification.

The attributes are: capital investment of P3.5 billion; significant contribution to the country’s economic development; significant consequential economic impact; significant potential contribution to the country’s balance of payment; significant impact on the environment; significant complex technical processes and engineering designs; and significant infrastructure requirement.

REVALIDATION
The EICC said for project proponents with existing service contracts and certificate of endorsements, “a project revalidation shall be conducted to ensure that they comply with the EPNS requirements.”

It also said for new energy project applicants, the validation or evaluation for EPNS qualification is to be determined in parallel with the processing of appropriate service contracts and certificates of endorsements.

The certificate of EPNS shall be issued simultaneously with the service contract or certificate of endorsement.

The EICC was created pursuant to EO 30, which was issued on June 28, 2017, in order to spearhead and coordinate efforts to harmonize, integrate and streamline the regulatory processes, and forms relevant to the development of energy investments relating to energy projects of national significance.

The council is chaired by a representative from the DoE and is composed of representatives from the Department of Environment and Natural Resources, National Electrification Administration, National Grid Corporation of the Philippines and the National Power Corp.

Also represented are the Department of Finance, Department of Justice, Department of Transportation, Housing and Land Use Regulatory Board, Palawan Council for Sustainable Development and other agencies whose participation may be deemed necessary by the council. — Victor V. Saulon

EU’s GSP+ raised competitiveness of small firms, communities — DTI

THE SURGE in 2017 exports to the European Union (EU), led by agricultural products, was aided by the bloc’s Generalized Scheme of Preferences Plus (GSP+) import scheme, which helped Filipino communities and small businesses raise their competitiveness, officials said   

Trade Secretary Ramon M. Lopez in a statement on Sunday said that the Department of Trade and Industry (DTI) welcomes the 31% increase in 2017 Philippine exports to the EU to €2 billion, which came even as Brussels and Manila engaged in high-profile spats over human rights.

Specifically, the exports include fish and other marine products, prepared food and fruits. Apart from produce, it said automotive parts, leather, textile and footwear also rose considerably due to the GSP+.

“This trade preference has benefitted several communities in the Philippines and opened opportunities for our Micro, Small, and Medium Enterprises (MSME). In the same manner, it has allowed our MSMEs to be more competitive in the local and foreign market,” Mr. Lopez said.

The Philippines has been part of the GSP+ since December 2014 and is expected to retain the benefits for eight years. Mr. Lopez has said it usually takes three years before the effects of the GSP+ are felt in trade.

An EU Commission report issued Friday, “The second report on the effects of GSP and the special incentive arrangement for sustainable development and good governance (GSP+) covering 2016-2017,” evaluates the progress of the GSP scheme and the implementation of the 27 conventions which cover human rights, labor rights, environment and good governance.

It noted that the Philippines achieved considerable progress in gender equality.

Among the 10 countries in the GSP+ program, apparel and clothing make up the bulk of imports that the EU receives at 53% or €4 billion, with Pakistan as the top exporter to the bloc, followed by the Philippines.

The EU Commission in its report clarified that countries that violate human and labor rights, environmental and good governance conventions will have their GSP+ status withdrawn, but this will not necessarily extend to the standard GSP. It is up to the EU Parliament if the country maintains its GSP+ status.

In the case of the Philippines, there were concerns last year over human rights and labor issues raised by parties within the EU which were addressed by Mr. Lopez and special envoy to the EU Edgardo J. Angara in September.

The report noted improved socioeconomic development, education and health. In the field of good governance, the report said the Philippines is addressing red tape and corruption.

Likewise, improvements were noted in the juvenile justice system but the Commission expressed concern about the lowering of the age for criminal responsibility, the possible reintroduction of the death penalty and the campaign against illegal drugs.

“Together with statements by the President that can be seen as incitement to killings and fostering a culture of impunity, the conduct of the ‘war on drugs’ raises serious questions about the Government’s commitment to human rights,” the EC said.

As for labor issues, the report noted that more effort is needed to enhance enforcement, particularly the inspection and investigation of labor conditions and prosecution of violators.

The EC said that labor legislation should align with and adopt the International Labor Organization Convention 87 on freedom of association.

The report also noted the Philippines’ support for the Paris Climate Agreement but raised concerns over the lack of detailed plans to address the use of clean energy and solutions for climate change.

On the prospect that the Philippines may yet lose its GSP+ status, Philippine Exporters Confederation, Inc. President and Chief Executive Officer Sergio R. Ortiz-Luis, Jr. told BusinessWorld: “[Losing] it may not be fatal, but it’s [still] a big loss if the GSP+ is canceled.” — Anna Gabriela A. Mogato

Filipino MMA fighter Catalan extends ONE winning streak

THE year 2018 got off to a good start for Filipino mixed martial arts fighter Rene “The Challenger” Catalan as he came out victorious in his battle with China’s Peng Xue Wen by way of a second-round technical knockout due to strikes at ONE Championship’s “King of Courage” in Jakarta, Indonesia, on Saturday night.

The win was the fourth straight for Mr. Catalan (4-2, one no contest), who incidentally was the lone Filipino who fought in Asia’s biggest sports media property’s first offering for the year.

Mr. Catalan showed crisp striking, which he complemented with steady grappling, to get the better of Mr. Peng, who is a Greco Roman champion.

The 39-year-old Catalan cut the fight short in the second round when he was able to land a solid liver shot that immediately dropped his opponent, after which he went for the finish by pounding on Mr. Peng.

The fight was stopped by the referee at the 4:22-minute mark of the second round.

After the fight, Mr. Catalan could not help but express his gratitude for another victory in his cap.

“First of all, I would like to thank God Almighty for bestowing this sweet victory upon me. It’s my fourth straight victory. Who would have thought that I can accomplish this after I went through numerous trials that I encountered in the past? Four straight wins is quite a milestone for me on a global stage like ONE Championship. I can’t explain what I am feeling right now,” said strawweight Catalan, who started his career in ONE with back-to-back losses.

He went on to say that he hopes to build on the momentum he has generated of late to make his way up in the division and possibly contend for the title.

“My preparation for this bout was beneficial to my growth as a martial artist in this sport and in ONE Championship. I am so satisfied as to how I performed. However, I still need to fix a few things as I continue to climb the strawweight ladder of ONE Championship. There is a long list of talented strawweights out there, but I am here to take the challenge. Challenges make me strong,” he said.

Mr. Catalan next wears his coaching hat as he prepares women’s atomweight fighter Jomary Torres, who is set to compete at “ONE: Global Superheroes,” which is ONE’s first event for 2018 in Manila on Jan. 26. — Michael Angelo S. Murillo

Adidas goes colorful with retro style upgrade

IN EVERY closet and on every pair of feet in well-heeled Manila is at least one pair of sneakers. By now, you’d know that sneakers aren’t just for gym class anymore; they’re taken everywhere from the dance floor to the boardroom. Sneaker culture has exploded into such a phenomenon that superstars like Kanye West, and high fashion brands with a capital “F” like Balenciaga have taken to the challenge of designing their own lines.

Last week, multi-brand retailer Sole Academy opened up the Think Tank, a space for pop-ups right outside its Bonifacio High Street store. The pop-up, its first, launched the revived adicolor line from adidas, which used primary colors which it calls Bluebird, Fairway Green, Scarlett Red and Sun Yellow for the collection on a very classic design first seen in the 1970s, and which has appeared again in 1983 (when, according to a release, all-white adicolor shoes were presented alongside a set of felt-tip pens) and 2006. “Taking inspiration from the past collections, the SS18 offering plays with these iconic shades and creates tonal ensembles to render a palette relevant for today,” explains a press release.

The new collection “offers a curated archive selection with the most influential adidas silhouettes of past decades in a self-referential play.”

Aside from at Sole Academy, adicolor is also available at adidas Originals stores, other retail partners, and at adidas.com/adicolor.

Sole Academy began in 2011 in Quezon City near Ateneo de Manila University, built by five ballheads — Mike Maglipon, Carlo Trillo, Jojo Hizon, and Mark and Martin Reyes. According to Marketing Director and cofounder Mr. Trillo, who was appropriately dressed in a green hoodie, the last time they did a project outside the store was in 2015, when they held a Sneaker Carnival in two parking lots of the SM Mall of Asia complex, with the aim of making “their mark globally.”

“We wanted to make Manila a sneaker capital of Asia,” he told BusinessWorld.

The pop-up at Sole Academy’s Bonifacio High Street branch will stay on for two weeks starting Jan. 20, and new releases from brands will be featured in the pop-up over the next six months.

The enthusiasm for sneaks runs deep in the Sole Academy’s founders’ veins: apparently, their obsession with the footwear came from their years on the basketball team of De La Salle Zobel, and they’d get their parents to buy them limited release sneakers from abroad.

Now, in 2018, the boys now carry nine brands in the store, namely adidas, Asicstiger, Jansport, New Balance, Nike, Palladium, Puma, Reebok, and Saucony, as well as limited releases from these brands. The company also has four locations, spread out from Alabang to BGC in Taguig City to Quezon City. They have also opened Sole Mini, a spin-off dedicated to children aged one to 9 years old. This year, the company plans to open its first branch outside Manila, in Cebu, and is in talks to open branches around Asia.

Trying to explain the boom of sneaker culture in Manila, Mr. Trillo said: “We’re a basketball-loving nation.”

“Aside from [that] climate, you see that it’s something people can wear throughout the week, or throughout the year.”

While most of the crowd during the Friday launch were from the young and beautiful set, he said: “Sneakers go beyond age,” citing that earlier last week, a 70-year-old popped into the store to shop for a pair.

“I don’t think it’s a trend. They want to be comfortable. They want to look good.” — Joseph L. Garcia

POEA warns anew on fake work documents

By Arjay L. Balinbin

THE Philippine Overseas Employment Administration (POEA) released an advisory over the weekend “reiterating its concern over reports and complaints by foreign employers on fake or altered certificates of employment of OFWs recruited and deployed for the Middle East and other countries.”

POEA said the scheme “involves the submission of fake or altered employment certificates of job applicants, in some cases perpetrated by some licensed recruitment agencies with the consent of the worker, to reflect compliance with work experience and training requirements of employers.”

The agency warned that “the malpractice endangers the welfare of OFWs and exposes them to possible deportation, detention and blacklisting which could deny them future employment in other countries.”

All licensed recruitment agencies were also reminded “of their duly notarized undertaking executed by their officers to select and deploy only medically fit and competent workers and to adhere to ethical standards in the recruitment and deployment of workers.”

The POEA advised recruitment agencies “to exercise due diligence in verifying the authenticity of documents submitted by job applicants”, and underscored that “both workers and recruitment agencies should be aware of possible administrative and criminal liabilities arising from violation of relevant laws and rules and regulation on overseas employment.”

Kabul hotel siege ends; all gunmen killed — gov’t

KABUL — Afghan Special Forces ended an overnight siege at Kabul’s Intercontinental Hotel on Sunday, killing the last gunman from a group of three attackers who stormed the hotel, taking hostages and battling security forces for hours.

Two gunmen were killed on Saturday night. It was initially reported that four gunmen had attacked the hotel.

Interior Ministry spokesman Najib Danish said at least five other people had been killed and six wounded, a lower casualty total than earlier feared, while 153 people, including 41 foreigners had been evacuated.

As day broke on Sunday, thick clouds of black smoke could be seen pouring from the building. Several armored US military vehicles with heavy machine guns could be seen close to the hotel along with Afghan police units.

The raid came just days after a US embassy warning of possible attacks on hotels in Kabul. There was no immediate claim of responsibility.

The raid was the latest in a long series of attacks which have underlined the city’s precarious situation and the ability of militants to mount high-profile operations aimed at undermining confidence in the Western-backed government.

Hotel manager Ahmad Haris Nayab, who escaped unhurt, said the attackers had got into the main part of the hotel through a kitchen before going through the hotel.

According to one witness, who did not want to be named, the attackers took hotel staff and guests hostage.

The Intercontinental Hotel, an imposing 1960s structure set on a hilltop and heavily protected like most public buildings in Kabul, was previously attacked by Taliban fighters in 2011.

It is one of two main luxury hotels in the city and had been due to host an information technology conference on Sunday. More than 100 IT managers and engineers were on site when the attack took place, Ahmad Waheed, an official at the telecommunications ministry, said.

US WARNING
The attack, just days after a United Nations Security Council visit to Kabul to allow senior representatives of member states to assess the situation in Afghanistan, may lead to a further tightening of security.

Large areas of the city center are already closed off behind high concrete blast walls and police checkpoints but the ability of the attackers to get into a well-protected hotel frequented by both government officials and foreigners demonstrated how difficult it remains to prevent high-profile attacks.

Mr. Danish said a private company had taken over security of the hotel about three weeks ago.

The State Department said on Saturday it was monitoring the situation and was in contact with Afghan authorities to determine whether any US citizens had been affected.

Captain Tom Gresback, spokesman for the NATO-led Resolute Support mission in Afghanistan, said they were also watching closely but it was not clear what role international forces were taking in suppressing the attack. “Afghan National Defense and Security Forces are leading the response efforts. According to initial reports, no Resolute Support or (US forces) members were injured in this incident,” he said in an e-mailed statement.

Although Resolute Support says the Taliban has come under pressure after the United States increased assistance to Afghan security forces and stepped up air strikes against insurgents, security remains precarious. As pressure on the battlefield has increased, security officials have warned that the danger of attacks on high-profile targets in Kabul and other cities would increase.

After repeated attacks in Kabul, notably an incident last May in which a truck bomber killed at least 150 people outside the German embassy, security has been further tightened.

While it shares the same name, the hotel in Kabul is not part of InterContinental Hotels Group (IHG), which issued a statement in 2011 saying that “the hotel Intercontinental in Kabul is not part of IHG and has not been since 1980.” — Reuters

Cook one-stroke up in La Quinta

LOS ANGELES — Austin Cook, chasing a second US PGA Tour title, fired an eight-under par 64 on Saturday to seize a one-stroke lead through 54 holes of the CareerBuilder Challenge in California.

Cook, who captured his first tour title in November at the RSM Classic at Sea Island, Georgia, fired seven birdies and an eagle and rolled in a tough par-saving putt at the 18th at La Quinta Country Club.

He emerged from the third round on 19-under par 197, one stroke in front of fellow Americans Andrew Landry and Martin Piller, who are both seeking a first PGA Tour crown. — AFP

Understanding Charter Change

Last week, Congress attempted to bamboozle its way to get the ball rolling on charter change by proposing to convene both the House of Representatives and the Senate in a constituent assembly (Con-Ass). Through the hasty approval of Joint Resolution No. 9, the House proposed that members of both Houses vote jointly on constitutional amendments.

The following day, senators held a caucus during which they unanimously agreed to oppose any joint voting or joint session under a Con-Ass.

In an official statement, Senator Koko Pimentel said that the chamber prefers to vote on a separate basis, not jointly. With that, the speeding cha-cha train came to a screeching halt.

The spate of events suggest that two things are imminent. First, that charter change is now a priority agenda in both houses and will be tackled sooner than later. Second, that the manner by which constitutional change will be carried out will be through a constituent assembly.

The constitutional reform agenda of the Duterte administration includes two major components. The first has to do with economic laws and the second relates to shifting our form of government from a Unitary-Presidential form to a Federal-Parliamentary form.

Before getting into the pros and cons of economic charter change and federalism, let me first share what I think about Con-Ass.

CON-ASS VS CON-CON
There are three ways to amend the constitution — through a constituent assembly, a constitutional convention (Con-Con), or a people’s initiative. Constitutional experts agree that a constitutional convention is the superior model. I agree.

A constitutional convention allows the citizenry to elect their own constitutional members according to their constituencies (localities). These representatives are responsible for drafting the constitutional amendments for which members of congress have no direct hand in the deliberations.

On the other hand, in a constituent assembly, the congressmen and senators themselves draft and vote on constitutional changes. A three-fourths vote will get the amendments passed.

A constitutional convention is the more democratic and participative method. However, it is also a longer process and a more expensive one, not to mention more divisive. The Department of Budget and Management estimates that a Con-Con will cost P7 billion to undertake.

In the Philippine context, the more contentious issue surrounding a Con-Ass is the people’s level of confidence in our congressmen and senators.

Given that only a handful of them are lawyers, let alone constitutional experts, many doubt whether they have the competencies to draft the laws of the land. And since history has taught us that the majority of our lawmakers vote accordingly to party lines, personal interest, and those of their benefactors, many fear that the amendments may be self-serving. As it stands, they are already talking about extending their own allowable years in office.

To assuage fears, Speaker Pantaleon Alvarez committed to establish various committees representing different sectors of society. These committees will be made to participate in the deliberation process, so as to make it an inclusive undertaking. Whether this will be enough to mitigate the personal interests of self-serving legislators remains to be seen.

ECONOMIC CHARTER CHANGE
Economic charter change is long overdue.

The restrictive provisions of the constitution, especially those that relate to foreign direct investments (FDI), has held back the country’s development for more than 30 years.

From the 1980s up to the close of the century, Singapore, Malaysia, and Thailand leapfrogged economically on the back of a deluge FDIs.

During that period, the Philippines share of regional FDIs was a paltry 3% in good years and 2% on normal years. The flawed economic laws of the constitution are largely to blame for this.

Imbedded in the 1987 constitutions is a list of industries in which foreigners are precluded from participation. These industries include agriculture, public utilities, education, and media, among others. The absence of foreign investors in these sectors has starved us of capital, technology transfer, and competition to push local companies to be more efficient. This is the largely reason why we have the slowest Internet service today, the most expensive power rates in Asia, and why we still have not attained self sufficiency in food production.

The protectionist flavor of the 1987 constitution clearly favored the interest of select Filipino families who are/were involved the media and broadcasting, power generation and telecommunications.

The Constitution further limits foreigners from owning more than 40% equity share in corporations. This has lead investors to either invest their money elsewhere or use several levels of dummies to evade the law. The latter breeds a domino effect of illegal acts.

The fact that foreigners are barred from owning land has proven to be a great disincentive for those building manufacturing plants, factories, and buildings with a useful life of more than 30 years. Land is used as equity for business financing and to take this away from the business model is enough reason for investors to take their business elsewhere.

Even Vietnam has beaten us to a pulp in the FDI race over the last 10 years.

In 2017, Philippine FDIs are seen to top $8 billion while Vietnam is poised to take-in $28 billion. The difference between our levels of FDIs represents our opportunity loss. Its high time something be done to even the score.

FEDERAL-PARLIAMENTARY GOVERNMENT
As mentioned earlier, the Duterte administration plans to a shift our form of government from a Unitary-Presidential form to a Federal-Parliamentary form. To better appreciate how a Federal-Parliamentary system works, it s best to look at it in contrast to a Federal-Presidential system.

A Federal-Presidential system offers no change to the current system where the President is elected through a national election and heads the executive branch. He has no sway on the judicial or legislative branches except through party-line influence. The United States operates under a Federal-Presidential framework.

A Federal-Parliamentary system , on the other hand, encourages people to vote according to political parties. Here, the citizens elect their Members of Parliament (their representatives), most often, based on the ideology of the party they belong to, not on their personalities. The party with the most number of elected representatives is declared “the parliament.” The parliament elects its Prime Minister (PM) from among themselves. The PM, in turn, selects the members of his Cabinet (his ministers) from among the members of the parliament.

There are multiple advantages to this. First, the system does away with expensive and divisive presidential elections. It puts an end to the vicious cycle of presidential candidates resorting to corruption and incurring political debts just to raise funds for their campaign.

Even the poor can run for office so long as they are capable. This is because elections are funded by the party. In a federal-parliamentary system, we do away with people who win on the back of guns goons and gold.

Moreover, since the members of parliament selects the Prime Minister, they can easily remove him through a vote of no-confidence should he fail to fulfill his mandate. We do away with the tedious process of impeachment. And since the ministers are selected from the Parliament, no one gets a free ticket to the Cabinet just because they are friends with the President or nominated by a political ally. The ministers all have mandates and are accountable not only to the PM but to their constituents.

The parliament is a unicameral legislative body. Thus, bills can be made into law faster and cheaper.

A parliamentary system is one where a “shadow Cabinet” exists. A shadow Cabinet is the corresponding, non-official Cabinet composed of members of the opposition. Each Cabinet minister has a shadow equivalent who is mandated to scrutinize every policy done by the official minister. The shadow minister may offer alternative policies which can be adopted if it is deemed superior.

In the end, the systems allows policies to be better thought out with appropriate safeguards to protect the interest of the people.

Among the seven wealthiest democracies (the G7 nations), only US and France follow a presidential system. the rest subscribe to a parliamentary system.

The intentions of charter change is good. Done right, it could be a game changer for the nation.

 

Andrew J. Masigan is an economist.

Patis Tesoro updates tradition

IF ONE questions why Beatriz “Patis” Pamintuan-Tesoro chose to focus on Filipiniana, her answer focuses on creativity. “I do it because I want to do it. I love creating things. For me, it’s a gift from God, and it’s something that I’ve done all my life, and I continue to learn new things.”

Last week, the 67-year-old doyenne of Filipino fashion presented a lecture on how traditional Filipiniana may be worn as a modern and everyday piece using 14 of her previous and latest designs to illustrate her point. Guests and the designer’s close friends filled the ground floor of the Tesoros building in Makati City on Jan. 18 to listen and interact with Ms. Tesoro at the Disenyo at Talento talk titled “How to Wear Modern Filipiniana.”

“Filipinos still wear Filipiniana but it’s morphed. It’s not what [you] see. So, when [you] go to gift shops or handicraft stores [which not many anymore], and [you] see the same old stuff, they won’t buy it because it hasn’t left its place,” Ms. Tesoro told BusinessWorld pertaining to the traditional layered and bulky designs.

Instead Ms. Tesoro showcased modern embroidered outfits including a black and white blouse adorned with the baybayin alphabet and calado embroidery paired slacks (by Tesoros) which may be worn for work. A simple white shirt (by Tesoros) paired with pants and a colorful bayong (a bag woven from dried leaves) handcrafted by autistic artists would look great for a casual day out.

Included in the showcase was a brown sarong from Thailand which Ms. Tesoro has owned for years. It was just recently that she came up with the idea to cut the cloth and create a patchwork piece with three kinds of fabric. The piece — kept in place with a knotted belt — functions as a skirt or tube top.

For formal events, sophistication is achieved with a black backless gown paired with a fully woven manton de Manila (a folded triangle-shaped shawl) or a long gown topped with an old panuelo (embellished scarf) transformed into a kaftan-style blouse.

PRESERVING TRADITIONAL ARTISTRY
The modern designs contrast with Ms. Tesoro’s belief in the hand-made production of embroidery. “What you are paying for is labor. So, how do [we] make it cheap? That is the problem because today, everything is expensive and human labor is even more expensive. The craft is dying out and even your crafts people are less.”

The designer believes and suggests that it is important to find people who have the talent to make a design’s price more reasonable. “We have to find them, and they have to find themselves.”

In advocating the continuation of traditional embroidery methods, Ms. Tesoro collaborates with Palo, Leyte Mayor Remedios Petilla in mentoring a group of women from a local livelihood center who periodically come to Manila and train in embroidery. The designer is also planning on opening a school for designers.

“Why can’t you do embroidery using the computer? Because the computer will think for you. The computer is a machine. [But] the human spirit guides your hands and makes something more beautiful than a machine. I believe in both. But in my field, [I believe] in the human spirit doing the work. Hopefully, this will be something that many people would want to pursue,” Ms. Tesoro told BusinessWorld, adding that creativity and hard work come first before business.

“It’s not only something for business. It’s for the spirit. Today, you can’t make money if you think of business, because business will come if you are creative. And I’m not talking only about craft. I’m talking about anything… If you say, ‘I can’t do it.’ Then, you can’t do it,” she said.

Disenyo and Talento talks were pioneered by Tesoros in 2015 “to preserve and inform upon our national heritage” focusing on creators and experts in “identifiably Filipino” crafts. — Michelle Anne P. Soliman

State counsel Paras passes away

CHIEF STATE Counsel (CSC) Ricardo V. Paras III passed away on Sunday, Jan. 21, the Department of Justice (DoJ) confirmed. In a statement, the DoJ said it mourns “the sudden demise of CSC Ricardo ‘Dickie’ Paras III this morning,” adding, “We ask the pious members of the DoJ family to pray for the eternal repose of his soul.” The cause of Mr. Paras’s death was not specified. Some of the cases Mr. Paras handled were the $81-million Bangladesh Bank heist in 2016 and the controversial joint venture agreement between the Bureau of Corrections and the Tagum Agricultural Development Corp., which was questioned in 2017. — Minde Nyl R. dela Cruz

Settled TRAIN

Social media have been chirping on the railroading of TRAIN, examples are the tweets of Center for Media Freedom and Responsibility (CMFR) and investigative journalist, Ms. Raissa Robles. CMFR tweeted, “Without a quorum: TRAIN railroaded into Law,” while Ms. Robles said: “Govt is doing public consultations AFTER, not BEFORE, new tax laws were passed. This is not supposed to be how democracy works.”

A lot can be said about this administration and the legislative process; but with regard to the Tax Reform for Acceleration and Inclusion (TRAIN) law or Republic Act No. 10963, let me state, and I was a direct participant in advocating TRAIN, that it was not railroaded.

Congress invested time and resources, deliberating more than 62 occasions running several hours each — that’s at least one public consultation every two weeks for the past 16 months since the Department of Finance (DoF) presented its proposal in September 2016. Almost all hearings and meetings were public — 20 sessions were held including four plenary sessions at the House, 36 sessions at the Senate, 12 of which were plenary sessions. Only the six bicameral committee hearings and about seven technical working group meetings were closed door.

The first package of TRAIN originally had five key components: the adjustment of personal income tax, rationalizaton of VAT exemptions, adjustment of excise taxes on fuel and automobile, and the earmarking for targeted cash transfers.

By the time TRAIN left the House of Representatives in May 2017, the components grew from five to 11 with the inclusion of the flat rate on estate and donor’s tax, the introduction of the excise tax on sugar sweetened beverages, and three tax administration measures — the relaxation of the bank secrecy law and exchange of information, interconnectivity, and electronic receipts, and fuel marking.

The Senate expanded TRAIN even further when it released its version with 10 more provisions: the increase in coal tax, with the removal of the exemption on local coal, doubling of mining and most of documentary stamp taxes, increase on the tax on foreign currency deposits unit (FCDU), capital gains tax for non-traded stocks, stock transaction tax for traded stocks, adjustment of creditable withholding tax rate, the introduction of an excise tax on cosmetic procedures, additional VAT exemptions on prescription drugs, condominium, and association dues, among others, and VAT zero-rating of all sales and transactions in special economic zones, free port zones, and tourism economic zones, and some more tax administration measures. The bicameral conference committee meetings in December 2017 added one final touch — the inclusion of tobacco tax, which both chambers ratified in separate sessions on Dec. 13, 2017.

More than a year after the original DoF proposal was presented, after passing through the legislative process, the President signed into law, a measure that grew from the original five components to more than 20.

The consultations that took place in the course of 16 months shaped the TRAIN we have today.

Various stakeholders like civil society, health professionals, labor unions, environmentalists, the elderly, women and children’s rights’ advocates, business, academe, former finance, health, and energy officials, among others participated in the hearings and consultations.

Outside the halls of Congress more than 100 consultations were likewise organized by DoF, the Philippine Chamber of Commerce and Industry, and civil society organizations such as Child Rights Coalition Asia, Alternative Budget Initiative, and Action for Economic Reforms. Consultations took place across the country, for example in Cebu, Davao, Palawan, and Naga City, the last one hosted by Vice-President Leni Robredo.

They won some demands, they lost others. Legislation is a product of compromise, and TRAIN is no exception.

President Duterte himself was not focused on TRAIN until the last minute when he exercised his veto.

There was no doubt that TRAIN would pass into law given the timely release of certificates of urgency during critical junctures, the strong reminder of the importance of tax reform during the first State of the Nation Address, among others. The question had always been in what form.

Clearly, what Congress submitted to the President was far from the Executive’s original intention. The versions that the House and the Senate passed were not the original version that the DoF wanted. The House version was closer to the DoF version. But some bad provisions still remained, and the estimate for revenue that it could generate was short of the DoF target. The Senate version, on the other hand, was mangled. The presidential veto on five items cured to some extent the worst parts of the Senate version.

Surely, the expansion of TRAIN and the compromises — some tolerable and others that have to be rejected — and the length of time and frequency of consultations belie a railroaded TRAIN.

Lastly, the question on the House quorum, by itself does not determine whether TRAIN was railroaded. Taking into consideration the narration of events above, we can say that TRAIN was a long and most difficult journey. It is now a matter for the courts to decide. But the House Rules read, “the member who questions the quorum shall not leave the session hall until the question is resolved otherwise the question will be deemed abandoned.”

What shaped TRAIN, the good and the bad, was the dynamics that involved different stakeholders, including civil society.

To hear detractors say that the TRAIN was railroaded is thus unsettling for many stakeholders and the professional men and women from government, especially DoF, many of them young and idealistic, who defended and fought for TRAIN’s good provisions.

 

May-i Fabros worked closely with civil society, DoF, and other stakeholders to strengthen people’s participation in reforms such as TRAIN and the Sin Tax Law.

Houston Rockets topple Golden State Warriors while OKC Thunder embarrass Cleveland Cavaliers

LOS ANGELES — The Houston Rockets ended the Golden State Warriors’ 14-game road winning streak Saturday, thwarting the NBA champions’ comeback bid in an impressive 116-108 victory.

Chris Paul scored 33 points and James Harden cemented his return from injury with 22 for the Rockets, who also saw Clint Capela, Luc Mbah a Moute and PJ Tucker score in double figures.

The Rockets outrebounded Golden state 46-33 and led by as many as 17 points in the second quarter en route to the win in a marquee match up of the two highest-scoring teams in the league.

“We had to get this win,” said Harden, who was supposed to be limited to less than 30 minutes of action in his second game back from a hamstring injury but played more than 34.

His step-back three-pointer with 1:10 left to play in the fourth helped sound the death knell, stretching the Rockets’ lead back to six points.

The Rockets, second in the Western Conference, improved to 17-0 this season when Harden, Paul and Capela are all active.

Although they battled back to lead by as many as four in a fourth quarter that saw six lead changes, the Warriors were ultimately undone by 19 turnovers.

Forward Kevin Durant led the Warriors with 26 points and Draymond Green added 21 points with seven rebounds and six assists.

Stephen Curry connected on just six of 20 shots from the field en route to 19 points and Klay Thompson scored just eight points, but Warriors coach Steve Kerr said it was the turnovers and defensive lapses that cost the game.

“Shots go in or shots don’t, but you can control turnovers,” Kerr said. “And out of the 19 turnovers, it didn’t feel like many of them were forced by the defense. It seemed like we were in a rush and too frantic.”

In Cleveland, LeBron James’s bid to become the seventh player in NBA history to reach 30,000 career points was thwarted and the Cavs found themselves looking at a milestone of a far different kind in a humbling 148-124 loss to the Oklahoma City Thunder.

James scored 18 points, falling seven shy of the 30,000 plateau, before departing the game midway through the fourth quarter.

He’ll have another chance to become the youngest player ever to reach 30,000 points when the Cavaliers face the Spurs in San Antonio on Tuesday.

In the meantime, he and the Cavs must try to sort themselves out after the Thunder’s 148 points tied the club record for the most scored against Cleveland in a non-overtime game.

“I don’t think I have ever in my basketball life given up 148 points. Not even in a video game,” James said. “I am not here to look for pity. No one is going to feel sorry for us. We just got to get better.”

Paul George scored 36 points for the Thunder. Carmelo Anthony added 20 and Russell Westbrook produced 23 points, 20 assists and nine rebounds. Kiwi big man Steven Adams added 25 points on 12-of-13 shooting from the field.

The Cavaliers have now lost five of their last six games and nine of 12.

The Miami Heat pulled within half a game of Cleveland for third place in the Eastern Conference, erasing a 10-point fourth-quarter deficit to edge the Charlotte Hornets, 106-105.

The 76ers moved into sixth place in the East with a 116-94 victory over the Milwaukee Bucks in Philadelphia. — AFP

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