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Zubiri backs action on ‘non-inflationary’ tax reform

SENATE Majority Leader Juan Miguel F. Zubiri said the Department of Finance (DoF) needs to focus on tax measures that will have minimal inflationary impact.
“I think we should sustain the momentum in containing inflation before we tackle another tax proposal that would scare investors or cause investors to pull out,” Mr. Zubiri said in a briefing on Thursday.
The remarks come after Senate President Vicente C. Sotto III said that the second package of the Comprehensive Tax Reform Program (CTRP) is not among the priority measures of the chamber in the 17th Congress, which ends on June 7.
Mr. Zubiri proposed to put off Package 2, which will cut corporate income tax rates and streamline incentives, and instead pass other packages of the CTRP.
“We are appealing to the Department of Finance to study first this measure. We can pass the other measures like TRAIN (Tax Reform for Acceleration and Inclusion) 3 and 4 that are not inflationary,” he said.
Package 3 of the CTRP seeks to centralize valuation and assessment of real properties; while Package 4 will simplify capital income and financial intermediary taxation.
The senator also cited Package 1B, the General Tax Amnesty bill, which is pending second reading in the Senate and is set to be introduced to the plenary at the House of Representatives when it resumes session on Nov. 12.
Sought for comment, Finance Undersecretary Karl Kendrick T. Chua said is a separate press briefing the “first thing I’ll do next week is to approach them to see how much we can move it together,” referring to Senators Sotto and Zubiri.
Despite the lack of support, Mr. Chua remained positive the enactment of the second package still stands a chance within the 17th Congress.
“This year I think it’s very difficult, but I think within this Congress the chances are still good,” he said.
He noted that while he does not see the measure hurdling Senate by year’s end, he hopes it can at least get approval at the committee level.
“It would be good if it passes out of committee this year, which I would consider good progress,” he said.
Mr. Chua said concerns of the business sector over uncertainty brought about by the tax measure are due to its progress through the legislature rather than the bill’s contents.
“A lot of investors are waiting for this bill to pass and that is for them the number one uncertainty; it’s not the contents of the bill. It’s just that if it is not passed, they do not know what the final incentive package will be,” he said. — Charmaine A. Tadalan

PHL, Japan sign MRT-3 rehab loan agreement

THE PHILIPPINES and Japan on Thursday signed a 38-billion yen loan agreement to upgrade and rehabilitate the Metro Rail Transit Line 3 (MRT-3).
Finance Secretary Carlos G. Dominguez III signed the loan agreement on behalf of the Philippines, while Japan International Cooperation Agency (JICA) senior vice-president Yasushi Tanaka signed on behalf of Japan.
The project seeks to improve the safety, reliability and the level of service of the 16.9-kilometer light rail system connecting 13 stations along EDSA — Metro Manila’s main artery.
The MRT-3 rehabilitation project will cost a total of P21.96 billion. Japan will provide a loan covering about 85% or P18.76 billion via its Official Development Assistance (ODA) agency, JICA. The remaining P3.19 billion will be funded by the Philippines.
The interest rate is 0.10% for non-consulting services and 0.01% for consulting services, with a maturity period of 40 years inclusive of a 12-year grace period.
“This is by every measure a very soft loan that will enable us to address a very pressing problem,” Mr. Dominguez said in his speech.
“This is good news for the Filipino commuters so they will have improved access to safe and reliable transportation, while also meeting the Philippine government’s priorities to reduce traffic congestion in Metro Manila, attract investments, and improve the quality of life of the people,” said JICA Senior Vice-President Yasushi Tanaka.
The project involves the replacement of “worn-out” tracks, a “general overhaul” of the 15-year old 72 light rail vehicles, that seeks to eliminate the problems of train stoppages, system failures, engine breakdowns and faulty air conditioning besetting the line.
The loan will also cover the rail line’s train cars, power supply system, overhead catenary system, radio system, closed-circuit television system, public address system, depot equipment, elevators and escalators and other station-building equipment.
Transportation Undersecretary Timothy John R. Batan said that the rehabilitation process will not disrupt the current capacity of the MRT-3.
He said that the DoTr will return the MRT to its normal design capacity in the next 26 months, to 20 operating transits from the current 15, and time intervals of three and a half minutes between trains from seven minutes currently, speeds of 60 kilometers per hour (kph) from 30 kph, and passengers carried to 500,000 from 388,000 currently.
He said that the DoTr will gradually increase the MRT’s capacity further until the 43rd month.
Mr. Batan said that the government will tap the services of Sumitomo-Mitsubishi Heavy Industries (MHI), the original maintenance provider of MRT-3 when it was first rolled out, before its contract was terminated in 2012.
He said that Sumitomo began the rehabilitation process on Oct. 15 to help accelerate the project.
Mr. Batan also said that the DoTr is still proceeding with the full integration of all the trains bought from Chinese firm CRRC Dalian Co.
“The transition process is already ongoing and full mobilization will be in January. The mobilization is already happening. The interface with Dalian trains is something that we are currently discussing in order to make sure that all the considerations have been addressed.
Mr. Dominguez said that the MRT rehabilitation was the fastest that was ever processed between both countries, taking less than three months.
The National Economic and Development Authority (NEDA) Board, chaired by President Rodrigo R. Duterte, approved the rehabilitation project on Aug. 22
“I would like to assure our harried commuters that we will rebuild and reinvent this vital rail service as quickly as possible,” Mr. Dominguez said. — Elijah Joseph C. Tubayan

BoC eases ID rules for balikbayan box tax-free privilege

THE Bureau of Customs (BoC) has eased the ID requirements for availing of the duty and tax-free privilege for balikbayan boxes valued at up to P150,000.
Customs Memorandum Order (CMO) No. 18- 2018, dated Oct. 11, 2018 allows the use of other documents to show proof of Filipino citizenship for availing the tax-free perk, instead of the actual Philippine passport in previous rules.
The BoC will allow photocopies of a pertinent page of the Philippine passport with personal information, picture and signature, or in case of dual Filipino citizen without Philippine passport, photocopy of foreign passport with personal information, picture and signature plus copy of proof of dual Filipino citizenship; permanent resident ID or equivalent document in other countries; Overseas Employment Certificate/Overseas Workers Welfare Administration card; work permit; Unified Government ID issued by the Department of Labor and Employment (DOLE); any other equivalent document except birth certificate.
“In a bid to simplify the rules and regulations on duty and tax-free consolidated balikbayan boxes, qualified Filipinos availing of the P150,000 duty and tax-free privilege are not required to submit the commercial invoices of the goods contained in the balikbayan box. Invoices are to be submitted only if available,” the BoC added.
Qualified individuals are still required to submit the information sheets through their freight forwarders or deconsolidators.
Qualified Filipinos abroad are holders of valid passports issued by the Department of Foreign Affairs (DFA) and certified by DoLE, or Philippine Overseas Employment Administration (POEA) for overseas employment purposes regardless of profession; Filipinos who have established permanent residency abroad while retaining Filipino citizenship; and resident Filipino citizens temporarily staying overseas including holders of student visas, investor visas, and tourist visas.
The BoC said that the balikbayan boxes should only contain personal and household effects that are not in commercial quantities. The boxes may be sent up to three times in a calendar year, with the cumulative value not exceeding P150,000.
The order also imposes stricter penalties on freight forwarders and deconsolidators, as those who use the balikbayan boxes as conduits for smuggling shall be subject to “criminal prosecution” and “cancellation of registration.”
Deconsolidators and freight forwarders clearing consolidated balikbayan boxes with the BoC are obliged to ensure that only personal effects and household goods are sent.
“The BoC assures the public that balikbayan boxes not subject of derogatory information or are tagged as ‘No Suspect’ after the mandatory non-intrusive inspections (X-ray) shall not be opened and not be subjected to physical examination,” the BoC said. — Elijah Joseph C. Tubayan

Payments, martial law hampering Mindanao outsourcing growth

By Carmencita A. Carillo and Maya M. Padillo
Correspondents
DAVAO CITY — The growth of technology start-ups and the overall outsourcing industry in Davao is being hampered by payment system problems and the martial law in force in the Philippines’ southern islands.
“Small technology companies here are utilizing Paypal and it’s a total disaster as we have to go through multiple layers of denial from banks. Paypal points fingers and the worst case scenario is it will freeze your account,” US-Philippines Commerce & Industry Agency (USPCIA) Vice-President Rick Von Pfeil told Businessworld in an interview during the recently-concluded Livelihood Exchange 2018 and Innovation Summit held in the city.
Mr. Von Pfeil facilitated the business matching activity between Davao start-ups and US companies during the event.
“Americans don’t use Paypal anymore,” he added, citing at least three local projects that were delayed because of the system.
The easiest way to get paid for outsourced services, he said, is through bank transfers and credit cards.
Mr. Von Pfeil said US firms are keen on Davao City as their next destination for business process outsourcing (BPO), software development, and other technology-related services as they recognize the huge pool of talent available not just for call center operations.
“Most US companies will think about India first and then Ukraine for outsourcing, but now they are looking at the Philippines, including Davao, as another potential destination,” he said.
“Filipino developers are more expensive than Indian developers but US companies are willing to pay more money because of factors like good customer service and good grasp of the English language,” he added.
He also said that young entrepreneurs of start-up companies should tap the “pretty strong” business chambers in the country for networking and opportunities.
MARTIAL LAW
Meanwhile, Leechiu Property Consultants said the declaration of martial law has affected BPO expansion plans in Davao City as well as Cagayan de Oro City.
The firm’s chief executive officer, David T. Leechiu, said the impact is largely due to negative perceptions and travel restrictions, particularly for BPOs with foreign executives and clients.
“The big issue about ML is that if you’re a foreigner… under ML they cannot travel,” said Mr. Leechiu, who is also currently serving his second term in the Information Technology and Business Processing Association of the Philippines’ (IBPAP) Board of Trustees.
“I understand the government also needing to keep ML in place… but we also need to understand the cost of that policy. But I have been appealing to government many times to lift martial law at least in Davao City and Cagayan de Oro City because that has put a stop to all BPO expansions,” he said.
“We saw Davao as the second largest market after Cebu and now that disappeared… they (BPO companies) haven’t pulled out, which is very good. (But) They can go so much bigger here and they want to, but they cannot,” he added.
He said between 2012 and 2017, the BPO sector alone has developed from “zero to close to 25,000” seats, but the growth has stopped since.
“There’s one company that expanded 500 seats in the first year of ML, but after that no more, unlike in many parts of the Philippines,” he said.
ICT-Davao President Samuel R. Matunog, on the other hand, said while meetings with potential new BPO locators and clients have declined significantly, companies who are already in the city are actually expanding.
“I am not aware of a new BPO locator opening shop in Davao this year. However, those who are already in Davao are ramping up recruitment, and in fact, our major challenge is talent poaching and irregular recruitment activities,” he said.
Nonetheless, the head of the region’s umbrella group for the information and communication technology sector, said it would be good if the security situation can be addressed by government through “measures short of martial law.”
President Rodrigo R. Duterte declared martial law in Mindanao on May 23, 2017 during the siege of Marawi City by Islamic State-inspired extremist groups. The declaration has been extended twice, with the second ending on Dec. 31.
Authorities said last week that Mr. Duterte is awaiting the recommendation of the military and the police on whether to seek another extension from Congress.

PCA to seek implementation of 5% coconut content in diesel

AGRICULTURE Secretary Emmanuel F. Piñol said that the board of governors of the Philippine Coconut Authority (PCA) will recommend to President Rodrigo R. Duterte to fully implement a law increasing the coconut content of diesel to 5%.
He said the move to a B5 standard, with 5% consisting of vegetable oil, will help support copra prices. The current level of implementation is B2, or 2% vegetable oil.
He added that raising the coconut content of diesel is expected to raise diesel prices by P0.30 per liter.
“The board passed a resolution addressed to the President to direct the National Biofuels Board to increase the biofuel component from B2 to B5. This is expected to effectively absorb a huge portion of copra right now in the market,” Mr. Piñol told reporters after his meeting with the PCA on Thursday.
Mr. Piñol said that he is expecting opposition, but explained that this is in the law and should be implemented. He said that increasing the biofuel requirement improve air quality and mileage.
“You can always expect opposition every time fuel prices increase. What we are recommending is in the law. Even the economic managers may oppose that but it is in the law,” Mr. Piñol said, referring to the Biofuels Act of 2006.
“We will ask the President for a directive to the National Biofuels Board to implement that. With this development, I think the price of copra will rise,” Mr. Piñol added.
The unimplemented Biofuels Act of 2006 requires all diesel to be blended with 5% coco methyl ester (CME), to stabilize copra prices. The biodiesel requirement should have taken effect in 2015.
He said the additional cost “will give you cleaner air especially for us in Metro Manila, and will give you greater mileage.”
The two other measures discussed during the PCA’s board meeting were the lifting of the ban on the export of mature coconuts, imposed via executive order (EO) by President Ferdinand E. Marcos, and the allocation of P300 million for the establishment of common service facilities that will feature an irradiation equipment facilitate coco coir exports.
“This EO was signed by President Ferdinand Marcos in 1985 and this has effectively prevented the export of mature coconuts but there are reports of ongoing smuggling activity. There are several countries that have expressed interest in importing mature coconuts from the Philippines and China is one of them,” Mr. Piñol said.
Mr. Piñol said the irradiation facility will be established in Davao for use by the coconut sector and other industries producing export materials such as fruits and fish.
“The money for the machine is available,” according to Mr. Piñol.
The PCA, in principle, also approved a national replanting program covering 1 million hectares for the next four years, Mr. Piñol said.
According to the Philippine Statistics Authority (PSA), coconut production during the second quarter was 3.33 million metric tons (MT), up 3.9% from a year earlier. — Reicelene Joy N. Ignacio

PHL growth seen on track, but global, political risks hover

By Melissa Luz T. Lopez
Senior Reporter
THE Philippines appears on track to sustain its growth path, although an uncertain global landscape coupled with domestic political risk could dampen prospects, an economist said.
Hal Hill, professor emeritus of Southeast Asian Economies at the Australia National University, said pockets of instability on both the domestic and external fronts could weigh on the country’s growth momentum, particularly if timely reforms are not installed by government.
“This is a paradox at the moment: it is a good time in the Philippines but it’s a very unstable, uncertain world economy,” Mr. Hill said in his keynote address for the annual meeting of the Philippine Economic Society yesterday, noting that domestic policy is “crucial” in driving growth.
He pointed out that the growing trade war between the United States and China is a major concern.
The Philippine economy grew by 6.1% in the third quarter, down from 6.2% in April-June, failing to meet market expectations. The slowdown was due to a drop in farm output which offset the buoyant services and industry sectors.
Mr. Hill said market watchers must look out for developments involving the country’s fiscal space, as well as political issues such as presidential appointments to key economic posts, resolving the Mindanao conflict, reforming food policy, and a possible shift to a federal form of government.
“Indicators thus far suggest that the strong economic momentum is being maintained,” according to the book The Philippine Economy: No Longer the East Asian Exception?, as edited by Mr. Hill and professors Ramon L. Clarete and Emmanuel F. Esguerra.
During the panel session, National Economic and Development Authority Undersecretary Rosemarie G. Edillon said the Philippines is experiencing a “higher growth trajectory,” while Bangko Sentral ng Pilipinas Assistant Governor Francisco G. Dakila, Jr. said the Philippines’ potential output has risen to 6-7% — roughly matching the current growth pace.
However, Mr. Hill flagged risks drawn from domestic policy, particularly from “very slow” reforms to the legal system and weak checks on the Executive. Sentiment may also be suffering from global concerns about human rights and perceived political instability here.
Ties with Congress could likewise make or break the administration’s investment agenda, as much relies on the passage of the annual budget and tax reform packages in order to shore up revenue for project funding.
The economist likewise pointed out possible frictions from international relations, especially after President Rodrigo R. Duterte appears to have turned his back on the European Union and the United States in favor of China.
“While the prospects for attaining the growth target seem favorable, as shown by recent economic performance, the risk of squandering opportunities is also very real,” the authors said. “The hostility expressed towards long-standing development partners early on is a case in point. So is the preoccupation with congressional investigations of doubtful value in terms of legislation.”
“In the meantime, attention is diverted from more urgent matters.”
In his book, Mr. Hill also pointed out that the Philippines “remains less open to trade and investment” compared to other Southeast Asian states. He noted that the country is slow to open up the economy to foreign participation, particularly with a “gradual but partial” approach towards liberalization.

Lloyds Energy declares interest in PNOC LNG tie-up

LLOYDS ENERGY GROUP LLC said it submitted a letter of interest to the Philippine National Oil Co. (PNOC) to join the selection process for PNOC’s joint venture partner to develop an liquefied natural gas (LNG) hub in Batangas Bay.
As required by PNOC, the Dubai-based firm said it had also bought eligibility documents containing instructions to private sector participants while confirming its attendance for the pre-eligibility conference scheduled on Nov. 16, 2018.
PNOC President and Chief Executive Officer Reuben S. Lista did not immediately respond to a request for confirmation of Lloyds Energy’s statement as well as questions on other companies signifying their intention to participate in the selection.
Lloyds Energy said it has a proposal together with together with China Kaicheng Energy Ltd. to develop and build an integrated LNG hub.
It becomes the first entity to come forward with firm plans after PNOC, the DoE’s corporate arm, last month formally invited interested bidders to be its joint venture partner that will design, build, finance, operate and maintain the LNG hub.
The Department of Energy (DoE) earlier said that PNOC is one of three groups that were shortlisted to build the LNG import terminal.
Lloyds Energy previously expressed interest in pursuing several projects with PNOC.
Aside from the LNG project, Lloyds Energy said it plans to pursue the development of oil reserves and the training of Filipino manpower for work in LNG industries in the Philippines and overseas.
PNOC, along with its chosen joint venture partner, will be competing with the two other interested proponents: the consortium between Phoenix Petroleum Philippines, Inc. and China National Offshore Oil Corp. (CNOOC); and Lopez-led First Gen Corp., which owns several gas-fired power plants.
The need for an integrated LNG terminal comes as the country’s lone source of natural gas — the Malampaya gas-to-power project — nears depletion. The contract for the project off the Palawan cost will end in 2024.
PNOC wants its LNG hub project to be classified as an energy project of national significance under Executive Order 30, the law that grants an easier regulatory permitting process.
The company required interested private sector participants to secure eligibility documents, which were made available for viewing at the PNOC’s website. It said in order to participate in the selection process, the interested joint venture partner must submit a letter of interest to the company along with the payment of P1 million.
Deadline of submission of eligibility documents is at noon of Dec. 21, 2018. A pre-bid conference open to the public, will be held at 10:00 a.m. on Nov. 16, 2018.
PNOC said that at any time, it reserves the right to not proceed with the competitive selection process and the execution of the joint venture agreement plus other relevant concession documentation “without prior notice or liability and without any obligation to give any reason not to proceed.” — Victor V. Saulon

Peso strengthens to five-month high

THE PESO maintained its strength yesterday to log a five-month high, supported by big fund inflows even as Philippine economic growth clocked in slower than expected.
The peso closed at P52.57 against the dollar on Thursday, shaving off 38 centavos from the P52.95 finish logged the previous day. This marked the fifth straight session when the peso appreciated versus the dollar.
The local unit traded generally stronger as it opened at P52.83, even touching a low of P52.485 throughout the session. It briefly touched P52.85 as its intraday high before settling at the closing rate.
Two currency traders attributed the sustained appreciation of the peso to renewed market optimism regarding inflation, boosted by equity inflows from offshore investors.
Dollars traded yesterday reached $1.353 billion, slightly lower than the $1.447 billion on Wednesday.
“They are saying there’s an inflow for San Miguel Corp., maybe since last week,” one trader said, referring to the conglomerate’s follow-on offering for its food and beverage unit worth P39.19 billion which concluded recently.
The trader said the dollar-peso pair has been moving lower, but these equity inflows observed towards the recent long weekend “exaggerated” the peso’s recovery.
A second trader pointed out that additional inflows likely came from remittances of overseas Filipino workers, which in turn helped boost the peso.
“The peso strength for now is due to yearend remittances. It can also be attributed to the market view that inflation has tapered down,” the second trader said, referring to the steady 6.7% print in October which was announced on Tuesday.
On the other hand, the trader said the third-quarter economic growth rate of 6.1% may have been treated as a “non-event” by investors even if it slowed from the upward-revised 6.2% pace in the second quarter.
The trader said the latest result is close to the market’s 6.2% consensus rate. A BusinessWorld poll among 15 economists yielded a 6.3% median forecast for the July-September period.
For Friday, both traders said the market will be looking to the United States as the Federal Reserve concludes its two-day policy meeting.
“For the Federal Open Market Committee, it has been priced in that there is more of a hawkish tone. Any event other than that might also move the dollar-peso,” the second trader noted.
Investors widely expect the Fed to raise interest rates by another 25 basis points during their December meeting, picking up cues from previous statements made by US policy makers.
The first trader expects the peso to trade between P52.50 to P52.80 today, while the second sees a P52.55-P52.85 range. — Melissa Luz T. Lopez

Main index ekes out gain on Q3 GDP growth data

By Arra B. Francia, Reporter
LOCAL SHARES barely moved on Thursday, weighed down by the slower-than-expected economic growth in the third quarter.
The bellwether Philippine Stock Exchange index (PSEi) eked out a gain of 0.02% or 1.78 points to close at 7,035.71, managing to temper losses seen in intraday trading. The broader all-shares index, meanwhile, dropped 0.21% or 9.05 points to 4,289.87.
Philstocks Financial, Inc. noted that the release of third- quarter gross domestic product (GDP) data influenced the market. The Philippine Statistics Authority reported on Thursday that the economy grew by 6.1%, slower than the second quarter’s revised 6.2%.
“While this is not a bad signal, it does raise concern… Broadly however, the report shows services posting the fastest growth (6.9%) followed by industry (6.2%). Somewhat within expectations, agriculture slowed to 0.4%. On the demand side, household spending slowed further to just 3.5% (per capita),” the brokerage said in a research report.
The GDP growth print was also lower than the median estimate of 6.3% in a BusinessWorld poll of 15 analysts last week.
“This was in contrast to Asia and the US wherein rose sharply on Wednesday after the midterm election results came in about as expected, lifting a cloud of uncertainty that was weighing on the market,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile message.
The Dow Jones Industrial Average jumped 2.13% or 545.29 points to 26,180.30. The S&P 500 index climbed 2.12% or 58.44 points to 2,813.89, while the Nasdaq Composite index rose 2.64% or 194.79 points to 7,570.75.
Asian markets also stayed mostly in positive territory, reflecting the gains on Wall Street after the United States midterm elections.
Sectoral indices were split between gainers and losers. The mining and oil counter led losers, giving up 7.02% or 691.47 points to 9,146.04, as sub-index heavyweight Semirara Mining and Power Corp. shed 10.03% to P26 apiece. The company said its net income fell by 23% to P8.9 billion in the first nine months of the year.
Services also went down by 1.32% or 18.99 points to 1,412.38, while holding firms slipped 0.06% or 4.20 points to 6,922.23.
On the other hand, property gained 0.73% or 24.99 points to 3,417.76. Industrials climbed 0.33% or 35.43 points to 10,687.93 and financials added 0.12% or 2.03 points to 1,591.87.
Some 1.56 billion issues valued at P8.39 billion switched hands, down from the previous session’s P46.50 billion which included the crossed shares by San Miguel Food and Beverage, Inc. due to its follow-on offering.
Net foreign outflows stood at P668.31 million, compared to Wednesday’s P38.60-billion net purchases.
Decliners were almost double the advancers, 132 to 70, while 50 issues were unchanged.

Enrile before history

What the media described as an “apology” last Oct. 24 from former Marcos Defense Minister Juan Ponce Enrile was in the same league as that of Marcos’s daughter Imee’s and son Bongbong’s.
But unlike the “apologies” of those two, Enrile’s sounded like an appeal not only to the electorate but also to the judgment of history. He’s running again for the Senate, and he certainly does not want to be remembered come Election Day as responsible for the abuses of the regime he served for two decades.
In contrast, the judgment of history was farthest from the mind of Imee Marcos, who in 2016 “apologized” to those who were “inadvertently” hurt during her father’s rule, but declared that the Marcos family will never admit guilt for any of the offenses its dead patriarch is accused of, among them extrajudicial killings, and the record-breaking theft of public funds conservatively estimated at USD 20 billion. She described all these as understandable “mistakes,” because, after all, “we’re only human.”
This year she also dismissed demands for the family to acknowledge its patriarch’s crimes and for a less than self-serving pseudo-apology by saying that the country has to “move on” — meaning to forget the martial law past, the atrocities of which her family refuses to acknowledge.
Her brother Ferdinand, Jr. had “apologized” in 2015 to those who “claim” to have suffered during their father’s 21-year (1965-1986) rule, but said that the family has “nothing to apologize for,” and that his father’s regime, had it not been overthrown in 1986 by the EDSA 1 civilian-military mutiny, would have made the country into another Singapore — which its first Prime Minister Lee Kuan Yew transformed from a malarial swamp into a first world city-state in less than 20 years.
The drive for even more power of both Marcos heirs has been encouraged by the support they have been getting from their ally, President Rodrigo Duterte, and the Supreme Court, which, despite the National Historical Commission’s declaration that the Marcos regime was a brutal dictatorship, nevertheless said when it allowed Marcos’s 2016 burial in the Libingan ng mga Bayani that history is yet to judge it.
Compared to the Marcoses’ non-apologies, Enrile’s version of events sounded more like an apology. But it was also an attempt to once again justify Marcos, Sr.’s placing the entire country under martial rule in 1972. He also tried to make it appear that the arbitrary detention, the torture, the rapes, the enforced disappearances, the extrajudicial killings and the other human rights violations that so characterized that dark period were aberrations — exceptions, rather than the rule.
Interviewed over Cignal TV’s One News The Chiefs program last Oct. 24, Enrile said “I’m sorry — if I have to apologize (emphasis mine). But it was not our intention to harm anyone but to protect society.”
What “they” (meaning Marcos, himself and their civilian and military accomplices) were trying to do, Enrile further claimed, was to “unleash (sic) a system of government control that had to be firmly established to prevent violence.”
The signs of the violence Enrile said Marcos and company supposedly wanted to prevent apparently included the demonstrations, marches, strikes and other protests against the Marcos regime that were so common in the first two years of the 1970s as well as the bombings in Metro Manila and the “ambush” on Enrile’s car that he himself admitted in 1986 they staged to justify the declaration of martial law.
Juan Ponce Enrile
The violence that in many cases followed protest actions was also not so much the doing of protesters as it was that of the police, the military, and their agents. But leave it to Enrile to make it appear that the victims of state violence were responsible for their own suffering, and that the regime he served from 1966 (he was acting Secretary of Finance in the first Marcos administration) to 1986, when he joined then Armed Forces Vice-Chief of Staff Fidel Ramos at EDSA, was moved by the best of intentions.
From earlier denying, during his now infamous online chat with Marcos, Jr. last September, that anyone was arrested or killed during the Marcos regime of terror, Enrile admitted last Oct. 24 that some people were indeed arrested and even killed.
But he described such incidents as the work of “aberrant” individuals who, he admitted, abused their power but over whom, he claimed, he had no control. Echoing the Marcos siblings, he was, he said, “only human,” and just one man who was trying to prevent others from being harmed. He also said that the regime did kill, but for a reason.
“We never killed people needlessly or without any reason — needlessly, with impunity,” a statement that suggests that rather than mean exemption from punishment, “impunity” to Enrile refers to killing “without reason.”
But even more seriously does that statement raise the question of what exactly those reasons could be. Rebellion? Sedition? Inciting to either, whether “wittingly or unwittingly” as the arrest orders Enrile signed by the thousands said? Those offenses were then punishable with prison terms, not execution. That people were killed for no other reason than on the suspicion that they committed these offenses only demonstrates that the killings were matters of policy.
The numbers in fact say that the killings, the torture, the abductions and the disappearances were far from being mere aberrations. A hundred thousand men and women, not just several, or a few dozen, or even a hundred, were arrested and detained during Enrile’s watch as the Marcos Mafia’s chief enforcer and consigliere. Over 3,000 were summarily executed (“salvaged”). Hundreds were forcibly disappeared. Thousands were tortured and abused in military camps and safe houses, about which Enrile, as the Number Two man of the dictatorship, was certainly aware.
All are clear indicators of a policy of repression, intimidation, abduction, torture and extrajudicial murder at work. The “aberrant” creatures in the then Philippine Constabulary, police, and military responsible for this attack on labor, peasant, student and opposition leaders, on journalists, academics, artists, poets and writers — on anyone the regime thought could, as Enrile himself admitted, be the rallying point of protest — cost Philippine society dearly. To simply dismiss these atrocities and the damage they inflicted on the present and future of this country as solely the work of moral deviants rather than the results intended by the policy of using State violence against its own people is the aberration.
But even if we grant his claim that only a few moral deviants were responsible for the outrage that was martial rule, more than an apology should be demanded of Enrile as he once again runs for Senator of the very Republic that he once helped destroy.
A declaration from him that precisely because an authoritarian regime inevitably empowers monsters — that it awakens the worst not only in the already criminally-inclined, and that absolute power leads not only to absolute corruption but also to total moral and intellectual bankruptcy — never should this country and its people abide despotism by whatever name. Neither should they return to power those who so loudly excuse and support it.
Such a declaration now, when the country is once again in the same grave danger as during his former boss of bosses’ rise to power, could help better history’s final verdict on Juan Ponce Enrile. But the possibility of his making such a declaration seems as unlikely as the political dynasties’ transformation into true servants of the people rather than their masters.
 
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

There is no right to immigration

If to migrate means leaving one’s country, then one is entitled to do so. Our own Constitution provides that the right to choose one’s abode or to travel cannot be impaired except by court order or by law in the interest of national security, public safety, or public health, respectively.
However, if to migrate means being able to demand entry and then reside in another country, then no such right exists. Entry into State borders is not for international law to say but of individual national laws.
For the Philippines, foreigners can enter the country subject to legal requirements and even then their rights are limited. To get the full rights of a citizen, Philippine laws require the foreigner applicant to reside in the country for at least 10 years, is at least 21 years old, have a business or trade, can speak and write in English or Filipino, and possess a modicum of civics knowledge.
Before continuing, a note as to terminology:
Migrants — are those who voluntarily leave their country for better work or living.
Refugees — are people who involuntarily left their country due to dangers brought about by armed conflict or political or religious persecution.
Asylum seeker — is one who claims to be a refugee but whose status as such is yet to be verified by the proper authorities.
Of course, one main difference between migrants and refugees is that the latter generally cannot return safely to his or her country of origin.
The Convention Relating to the Status of Refugees (otherwise known as the 1951 Refugee Convention, which the Philippines acceded to — along with the Protocol — in 1981), provides that people who committed a crime against peace, a war crime, or a crime against humanity, or has committed a serious nonpolitical crime outside the country of refuge prior to his admission to that country are not considered as refugees.
Is there a right to claim asylum? Britannica puts it this way: “It is the right of a state to grant asylum to an individual, but it is not the right of an individual to be granted asylum by a state. This perspective is reflected in the Universal Declaration of Human Rights (UDHR), which, though recognizing (article 14) the right ‘to seek and to enjoy in other countries asylum from persecution,’ does not explicitly provide a right of asylum.”
“The original draft of that article, which referred to the individual’s right ‘to seek and to be granted asylum from persecution,’ would have afforded more protection to asylum seekers. Similarly recognizing that ‘the grant of asylum may place unduly heavy burdens on certain countries,’ the Convention Relating to the Status of Refugees, which was adopted by the United Nations (UN) Conference of Plenipotentiaries on the Status of Refugees and Stateless Persons in 1951, did not create a right of asylum for those seeking it, and the impressive array of rights it enumerates pertains only to those refugees ‘lawfully in’ or ‘lawfully staying in’ the sheltering state.”
“Subsequent unsuccessful efforts to articulate an individual’s right of asylum included: (1) the UN General Assembly Declaration on Territorial Asylum (1967), which contained substantive exceptions to its non-refoulement (non-return) provision (pertaining to national security and to the safeguarding of its national population), and (2) a proposed Convention on Territorial Asylum, which never materialized.”
Now this is important: international law requires that asylum seekers claim asylum in the first country they enter upon leaving their own country. If they enter such second country and then not stay but move on to another country (e.g., leaving Guatemala to enter Mexico and then traveling towards the US) then they are no longer considered asylum seekers but migrants. And as mentioned above, there is no right to migration, in the sense that no one can demand entry into another country.
Essentially it’s a matter of respecting sovereignty.
For those who retain the status of asylum seekers, International Policy Digest’s Bruce Newsome (“Immigration is a national choice not an international law,” February 2018) points out that since they are not immigrants under international law, then “they have no ‘right to remain’ under international law. The original system aims for them to receive protection in a neighbouring country until they can safely return home.”
Those are the facts. And yet in today’s politically correct, inclusive mindset, “exclusivity” has become a bad word, akin to “sovereignty.”
But as The Federalist’s Mark Earley argues, “exclusivity is necessary for meaning, identity, and accountability.”
Thus, “why would a nation need to be based, as least in part, on a principle of exclusivity? It is because nations, not unlike families, need to have some sense of identity, even purpose. When a group of people is defined as everyone and anyone, that actually means that it is no one. If everyone comes and goes as he pleases, there is a void of identity, collective belonging, commitment, responsibility, and accountability. Citizenship is a commitment.”
 
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

Freedom for greater freedom

Moving on with our attempt to understand the proposed federal Constitution, a glimpse of one very cherished provision of the Bill of Rights deserves a prominent place in the national discourse — The Freedom to speak, express and assemble.
While the 1987 Constitution mandates that “no law shall be passed abridging the freedom of speech, of expression, or of the press, or the right of the people to peaceably assemble and petition the government for redress of grievances,” the Consultative Committee’s version goes further and stipulates that the local government units shall, among other things, establish appropriate freedom parks for the peaceful assembly of the people.
We all know that a freedom park is an accessible public space where sociopolitical rallies and meetings may be done where no prior permit or license is needed from the government. The justification for this is the people’s inherent right to express their sentiments against the authorities. These activities can be validly regulated in the name of public interest and order. The right to gather in a freedom park finds basis in BP 880 or the Public Assembly Act. Nothing new here but re-emphasizing this in the basic law of the land sends a strong signal to local government units to take this seriously and designate an area where citizens can air their grievances without going through the bureaucracy of getting a mayor’s permit or being under the threat of harassment or physical harm by law enforcers.
However, we should go beyond just freedom parks. It goes without saying that this section of the Bill of Rights must be tackled, in connection with the International Convention on Civil and Political Rights where freedom of expression is considered not only a fundamental freedom in itself but its respect is also essential for the enjoyment of other rights, including freedom of ideas, right to privacy and the right to participate in political discourse or public affairs. It provides inertia for achieving accountability and transparency which are central to human rights. Essential to this is the Constitution as an enabler for those who want to know, seek, obtain, receive and hold information relating to these basic freedoms.
There is no denying that those who use the power of the pen and grassroots organizing in the name of legitimate dissent are the ones who have been denied the exercise of these rights. Many activists and journalists have either been publicly persecuted, arrested or even killed under separate laws like the Revised Penal Code or special legislation which needs to be revisited, particularly in the areas of libelous expression and national security violations. I remember the raids and closure of major dailies during martial law or even the seemingly innocuous persecution of publications which are critical of government abuses. Many unsung heroes have fallen as martyrs in their pursuit of greater freedom through their curtailed right of expression — Ninoy Aquino, Voltaire Garcia, Col. Jose Reyes, Lean Alejandro, and many more from different political spectrum.
Yes, the state can impose limitations on freedom of expression in the name of national security or peace and order, but these should ideally apply only to those actions which are actually intended to incite or really result to violence. There must be a showing of a real, not perceived, connection between the expression of a view or belief and the case of violence. In fact, international law principles have now recognized that any obstacle, statutory or in any other form, to the right to freedom of speech must be considered as an exception rather than a standard. This follows the concept that the human being is primordial rather than the interest of the state.
The promotion of free and robust exchange of ideas, beliefs or even biases in the social, political, religious or philosophical spheres is indispensable to a truly democratic nation. Unnecessary or unreasonable restraints or any prohibition, even in subtle form, against the aforementioned rights, are dangerous steps towards the establishment of authoritarian regimes. We certainly do not want to look back to that darkest part of our history as a nation.
“You must first enable the government to control the governed; and in the next place, oblige it to control itself. Knowledge will forever govern ignorance, and a people who mean to be their own governors, must arm themselves with the power knowledge gives.” — James Madison on the Constitution of the United States of America.
 
Ariel F. Nepomuceno is a management consultant on strategy and investment.

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