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Senate panel backs night pay for gov’t workers

THE SENATE COMMITTEE on civil service, government reorganization and professional regulation is pushing for the passage of two bills that will provide night-shift differential pay and hazard pay to government workers.
“Our government workers have long suffered neglect and poor working conditions. This act is just a simple effort to repay them for their service and to recognize their role as the backbone of the government,” said Senator Antonio F. Trillanes IV, who chairs the committee, in a statement on Sunday.
“It is only fair that they should be given substantially the same benefits as those given to employees in the private sector,” he added.
Senate Bill No. 1562, written by Senators Leila M. de Lima and Loren B. Legarda, proposes a night differential pay for government employees “at a rate exceeding 20% of the hourly basic rate of the employee for each hour of work performed between ten o’clock in evening and six o’clock in the morning.”
The proposed night differential pay does not cover workers under the Republic Act No. 7305 or the Magna Carta of Public Health Workers and government employees whose services are required 24 hours a day, such as the uniformed personnel of the Armed Forces of the Philippines (AFP), Philippine National Police (PNP), Bureau of Jail and Management (BJMP), and the Bureau of Fire Protection (BFP).
Meanwhile, Senate Bill No. 1559, introduced by Senators Trillanes and Legarda, provides for hazard pay for government employees assigned in the following fields:

• hazardous areas as declared by the Defense Secretary

• hardship posts characterized by distance, inconvenience of travel

• clinics, laboratories and similar stations which offers health and safety risks due to exposure to radiation, contagious diseases and volcanic activity

• institutions that tend to patients with mental health problems

• places that are subject to depredation by criminal elements, such as prison reservations and penal colonies without adequate police protection

• plants and installations of the arsenal

• aircraft and watercraft crossing bodies of water

• other work conditions which the Department of Budget and Management (DBM) shall consider hazardous

Both bills state that the night differential pay and the hazard pay could be received by government employees “regardless of the nature of their employment, whether permanent, contractual, temporary or casual.”
Senate Bills 1562 and 1559 are pending for second reading approval. — Camille A. Aguinaldo

The proper allocation of costs and expenses for financial institutions

The Regional Trial Court (RTC) of Makati released its decision on the petition of banks seeking the invalidation of Bureau of Internal Revenue (BIR) Revenue Regulations (RR) No. 4-2011, which prescribed the rules for the proper allocation of costs and expenses for banks and financial institutions, for income tax reporting purposes. The RTC ruled that RR No. 4-2011 is unconstitutional, and ordered a permanent injunction on its implementation.
Section 27 of the National Internal Revenue Code (Tax Code) provides that an income tax of 30% is imposed on the taxable income earned by corporations, such as banks. Section 31 defines taxable income as gross income less any deductions authorized by the Tax Code. Meanwhile, Section 34 outlines the deductions allowed for corporations to include ordinary and necessary expenses paid or incurred during the taxable year that are directly attributable to the trade, business or exercise of a profession.
On the matter of the deductibility of expenses of banks, the BIR promulgated RR No. 4-2011 on March 15, 2011. The RR aimed to set the rules on the allocation of cost and expenses between two booking units of a bank: the Regular Banking Unit (RBU) and the Foreign Currency Deposit Unit (FCDU). The allocation was based on the assumption that each booking unit is governed by different income taxation regimes provided by the Tax Code. RR No. 4-2011 further required that subsequent to the allocation of the costs and expenses to the booking units, the costs and expenses should be allocated among income arising from active business operations which are subject to regular income tax, passive activities which are subject to final tax, and other activities producing income which are exempt from income taxes.
To allocate the costs and expenses, RR No. 4-2011 prescribed two methods: (1) By Specific Identification and (2) By Allocation. “By Specific Identification” is used if an expense can be specifically identified with a particular booking unit or taxation regime. “By Allocation” is used if the expense cannot be specifically identified with a particular unit or taxation regime, and allocation must then be based on the percentage share of gross income earned by the booking unit or taxation regime to the total gross income earned.
Considering that costs and expenses are usually allocated to different booking units and taxation regimes, the tax benefits by way of tax deductions enjoyed by the banks from these costs and expenses are significantly decreased. For example, with regard to expenses allocated to FCDU activities which are subject to 10% final tax, no benefit can be derived, as no deduction is allowed to be applied against such activities. For expenses which will be allocated to income subject to final tax, the taxpayer will receive no tax benefit as well, since deductions are not allowed against income subject to final tax. For expenses allocated to income exempt from income taxes, no benefit can be acquired, as income is already exempt from income taxes.
Due to the effect of RR No. 4-2011 on the banking industry, a number of banks filed a petition for Declaratory Relief before the Regional Trial Court on April 6, 2015. The RTC subsequently issued a Temporary Restraining Order (TRO), enjoining the enforcement of RR No. 4-2011, and any issuance of Preliminary Assessment Notice or Final Assessment Notices to enforce the said regulation.
On May 25, 2018, the RTC promulgated its decision declaring RR No. 4-2011 null and void, issued a permanent injunction on its implementation, holding that RR No. 4-2011 was unconstitutional since it was issued beyond the authority of the Secretary of Finance and the Commissioner of Internal Revenue.
The RTC noted that the Supreme Court has consistently ruled that delegation of legislative power to administrative agencies is strictly construed against the said agencies. Regulations issued by the administrative agencies should be in harmony with the provisions of the law, and thus cannot amend or modify any act of Congress. The RTC ruled that the BIR and the Secretary of Finance were not empowered by law to issue RR No. 4-2011, as there is no provision in the Tax Code that requires expenses be allocated. The RTC found that nowhere does Section 27 of the Tax Code provide any basis for the BIR to impose any particular accounting method to allocate expense. Additionally, Section 50 of the Tax Code, which requires that deductions be allocated between or among organizations, is not applicable considering that it only applies to corporations that have two or more separate and distinct organizations, trades or business.
The RTC also ruled that the method of allocation is neither fair nor equitable to similar classes of taxpayers. In effect, RR No. 4-2011 imposed a limitation on the deductibility of ordinary and necessary expenses, which is a taxpayer’s right. The Tax Code only requires that the expense be incurred or paid while carrying out the trade or business of the bank.
Finally, the RTC finds that RR No. 4-2011 violates the equal protection clause, since there is no substantial distinction between banks and other taxpayers, and the singling of banks is not germane to the purpose of the law.
While this is a win for banks, the final outcome is subject to the petition for review on certiorari that the BIR filed with the Supreme Court. Considering that the Supreme Court may reverse or modify the decision of the RTC, banks should take this petition into consideration before relying solely on the decision of the RTC.
This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinion expressed above are those of the author and do not necessarily represent the views of SGV & Co.
 
John Raymund Vincent A. Fullecido is an Associate Director at SGV — Financial Services Tax.

Analysts: Takeover at BoC testing waters on nationwide martial law

By Arjay L. Balinbin
Reporter
WITH his order for the Philippine military to take over the Bureau of Customs (BoC), President Rodrigo R. Duterte is “testing the waters” for the declaration of a nationwide military rule, analysts said.
“Right now, what’s happening in the BoC is just ‘testing the waters.’ I would look at it that way,” Polytechnic University of the Philippines (PUP) sociology professor Louie C. Montemar said in a phone interview last Saturday, Nov. 3.
For his part, University of the Philippines (UP) Law Professor Antonio G.M. La Viña said there is a big chance for the President to declare martial law nationwide given his “militarian” style of leadership.
“I always put that the chance of the President declaring martial law is at 75% because that’s his frame of mind. He solves things by depending on the military,” Mr. La Viña said in a phone interview on Oct. 30.
Mr. Montemar added that if the military’s supervision of the BoC “succeeds in a way or if they package it as if it is succeeding, then that can be the basis for the President to say that they will need to make militarization [in other agencies] happen.”
“The President can really do it [martial law], but he needs good timing for it…. He’s been trying to impress to people that there are threats to safety and security for instance, and he is again raising the issue of the communists’ [ouster plot]…. He is raising various conspiracy theories…. You can see the pattern,” Mr. Montemar also said.
He noted as well that the President is being “careful about presenting the idea” of a military rule in the country. “Probably, he is thinking also that why declare it when we can actually do what can be done without declaring it?” Mr. Montemar said.
For Mr. La Viña, other government agencies should be alarmed that they may get “militarized” too after the BoC. “Of course, because what’s next? If there are agencies that are not working, then you will let the military…take over? Actually it’s wrong because it doesn’t solve the problem. The military is not a band-aid [solution] for everything. The military is good at fighting wars. That’s what they are trained for,” he said.
“What’s very clear to me is that the President is more inclined on militarian solutions to things than anything else….I’d say we really have to watch out for the declaration of martial law and the declaration of military takeover of many [agencies] in the country,” he also said.
On placing the BoC under military rule, Mr. Montemar said: “I really don’t see the logic of the order. One, it is illegal; number two, historically, we have seen how the military itself can be very corrupt, coming from our experience with the past dictator; and number three, there is no really a written order….As I said, the President is not inclined to doing things in the legal way.”
For his part, Mr. La Viña said: “The problem with the President is that he has not appointed the right people….I’ll take a risk in saying that [former Customs commissioners Nicanor E.] Faeldon and [Isidro S.] Lapeña are good people and they are not corrupt, but they are not competent. They had no clue. They were clueless about what they had to do in the institution.”
The administration, according to Mr. Montemar, “needs to learn lessons from the past.”
“The military, with all due respect, is an institution that is very proud of its integrity. But actual experiences in the past showed that this integrity could have a price. Civilians are also like that, so there is no guarantee that either civilians or military men will not be involved in graft and corruption….It’s how you design the system in the agency. It’s how you set up the culture of that agency to better ensure the integrity of the institution. It’s not a matter of who will be there, but it is how the system works and how things are really managed,” he said further.
In his remarks in Davao City last Oct. 28, Mr. Duterte vowed that there will be no martial law declaration in the second half of his term, but stressed that he will use the “strongest tools” in dealing with crimes in the country.
Presidential Spokesperson Salvador S. Panelo was sought for comment as of press time.
For her part, Vice-President Maria Leonor G. Robredo said in her radio show on Sunday, “Hindi militarization iyong solusyon. Dapat tingnan bakit ba nagkakaganito iyong Customs?” (Militarization isn’t the solution. We need to look at why this is happening in Customs).
“Hindi naman bawal na mag-appoint ka ng mga dating militar, pero para sabihin mo na i-a-under na sa military iyong Bureau of Customs, mali iyon” she added. (Appointing former military men is not prohibited, but to say that you will place the Bureau of Customs under the military, that’s wrong). — with Charmaine A. Tadalan

Southeast Asian journalists flag culture of impunity

By Vince Angelo C. Ferreras
FIFTY-FIVE percent of journalists in Southeast Asia said the culture of impunity is a major concern in their countries, according to a report by international media groups.
Commemorating the International Day to End Impunity for Crimes Against Journalists last Nov. 2, the International Federation of Journalists (IFJ) and the South East Asia Journalist Unions (SEAJU) launched the preliminary findings of their joint study on the safety of journalists which surveyed 1,000 journalists from Southeast Asia.
The survey showed that one in two journalists believes their government’s response to impunity was deemed worsening or extremely bad. Meanwhile, 44% of journalists in Southeast Asia felt that media freedom declined in their respective countries in the past 12 months.
“The systematic failure of governments in South East Asia to act to ensure the safety and security of the media is evident from the survey findings. This research is an opportunity for action to tackle impunity and guarantee the safety of the media,” said IFJ in a statement.
The joint study also showed that the justice system (23%) is considered the top key influencer on impunity among journalists. It was followed by political leadership (19%), government (16%), and the police authority (11%).
Moreover, IFJ and SEAJU pointed out that working conditions, cyber attack, physical attack, and arrest and detention were the biggest threats to journalists in 2018.
“The findings of the survey unequivocally show that impunity for assaults on journalists and the repression of press freedom and free expression has been steadily worsening throughout the region. This means not only do we journalists need to further strengthen our ranks and cooperate across borders to protect ourselves and improve our welfare, we will also need to undertake more direct engagements with our audiences, the people we serve, and get them firmly on our side,” said SEAJU in a statement.
IFJ and SEAJU, however, also noted positive advancements in behalf of safety of journalists in some Southeast Asian countries. In Timor Leste, not a single journalist has been jailed in connection with their work. Meanwhile, the change of government in Malaysia early this year has opened an opportunity for media freedom to flourish.
However, the Philippines, the third deadliest country for journalists, is facing new threats and challenges such as online trolls and campaigns that make them feel unsafe online and offline.
United Nations Secretary General Antonio Guterres for his part said: “In just over a decade, more than a thousand journalists have been killed while carrying out their indispensable work. Nine out of ten cases are unresolved, with no one held accountable.”
He added, “I call on Governments and the international community to protect journalists and create the conditions they need to do their work…. Reporting is not a crime.”

Just joking, Malacañang again claims on Duterte tirade vs church

MALACAÑANG again came to the defense of President Rodrigo R. Duterte, asserting that his most recent statement about the Catholic Church was just a joke. In his remarks in Cauayan City, Isabela last Nov. 1, All Saints’ Day, Mr. Duterte questioned the celebration saying, “Bakit naman may (Why is there) All Souls’ Day (then), All Saints’ Day. Hindi nga natin alam kung sino ‘yang mga santong sino na mga g*** na ‘yun. Mga lasenggo (We don’t even know who those silly saints are. They are drunkards).” Mr. Duterte went on to say that people should just put their faith in him. “I’ll give you one patron…. Get hold of a picture of mine. ‘Yan ang ilagay niyo sa (Put that on your) altar — Santo Rodrigo.” Presidential Spokesperson Salvador S. Panelo, in a statement released on Saturday night, said, “Actions should be given more weight than the spoken words when one ascertains the true attributes of a person for certainly actions speak louder than words.” He added, “A joke is a joke and the same does not require an explanation. Nor should it be given as a religious slight.” He noted as well that the “strength and credibility of a religious faith that has been there for more than two thousand years and survived wars and internecine cannot be affected by what some deem as an assault by non-believers nor will its faithfuls be offended by any playful jab on its saints.” — Arjay L. Balinbin

World Tsunami Day: Giant waves rare in PHL, but could be devastating, says Phivolcs

TSUNAMIS ARE rare in the Philippines, but the country remains vulnerable to giant sea swells due to offshore faults and trenches, the Philippine Institute of Volcanology and Seismology (Phivolcs) cautions in observance of World Tsunami Day on Nov. 5. “We should be aware of all the earthquake hazards that could affect us, and prepare for it, not only the ground shaking caused by large earthquakes, but also other hazards like tsunami,” Undersecretary Renato U. Solidum, Jr., officer-in-charge of Phivolcs, said in a statement. The country is surrounded by offshore trenches such as those in Manila, Negros, Sulu, Cotabato, the Philippine Trench in the east, and the East Luzon Trough. Mr, Solidum said it is crucial to sustain community-level awareness about earthquakes and tsunamis, focusing on the recognition of natural signs, as well as setting up warning and evacuation procedures. One of the past tsunamis was in Mindoro on Nov.15, 1994, triggered by a magnitude 7.1 earthquake, where 38 people drowned. Mr. Solidum said, “It is important we learn from the past experiences so we know how we can prepare in case it happen again in the future.”

Cebu quarry ban lifted except in Naga, Carmen

THE BAN on small-scale quarry operations across Cebu has been lifted by the Provincial Environment and Natural Resources Office (PENRO), except for those in the town of Carmen, where cracks in a site have been found, and in Naga City, where there extensive landslides in September that killed more than 70 people. PENRO head Jayson P. Lozano said the technical opinion of a geologist and other mining experts will be sought, including necessary corrective measures, before deciding on these two areas. While the ban has been lifted in most parts of the province, PENRO said it continues to monitor the implementation of corrective measures to neutralize potential hazards. In Talisay City, PENRO suggested to QM Builders to implement a “benching method” on their quarry site to mitigate the risk of having a disastrous landslide. The firm is given 90 days to address the issue. Some families residing near the quarry site in Barangay Lagtang have been evacuated. — The Freeman

Davao MSMEs seen to benefit from Chinese consulate opening

MICRO, SMALL and medium enterprises (MSMEs) are expected to benefit from the increased tourism and trade that will be prompted by the opening of a Chinese consulate general in Davao City. “Chinese tourists have been taking over the world … and with the opening of the Chinese Consulate General in Davao City timed with the launching of the direct flight of (Cathay) Dragon from Davao to Hong Kong, we anticipate a remarkable impact on tourism and trade,” MSMEs Development Council (MSMEDC)-Mindanao Representative Mary Ann M. Montemayor said in an interview. “They are filling hotels, tourist buses, cruise ships and Davao/Mindanao will now be a test bed on how attractive we will be,” she said. Ms. Montemayor also said that the existing sisterhood agreement between Davao and Nanning in China will likewise ensure that trade, investment and tourism will be enhanced. “As they say, the ball is in our hands… it is now incumbent upon us to play our cards right,” she said. The consular office was inaugurated on Oct. 28 by Chinese State Councilor and Foreign Minister Wang Yi during a two-day visit for bilateral meetings. — Carmencita A. Carillo

Agribusiness, tourism to get boost from revived Manila-Davao shipping route

THE REVIVAL of the Manila-Davao shipping route, launched on Oct. 28, was welcomed by the business sector as a boost to tourism and agricultural trade. “This will have a great impact in the local economy, especially in the tourism side,” Mindanao Business Council Chair Vicente T. Lao said. The route is being covered by the 2GO Group Inc., using its main vessel St. Michael the Archangel, which can carry 1,900 passengers and as much as 100 TEU (twenty-foot equivalent unit) of containers. “This is really a welcome development. This will give an alternative to our travelers to take the shipping route in going to and from Manila,” Davao City Chamber of Commerce and Industry, Inc. President Arturo M. Milan said. Councilor Al Ryan S. Alejandre, chair of the committee on tourism, said the passenger terminal at the Sasa Port has also been renovated to provide better facilities. “We are also coordinating with 2GO since one of the owners is Davao’s Dennis Uy,” Mr. Alejandre said. — Carmencita A. Carillo

The Third Telco Project, Winner’s Curse and Sustainability

The government’s third telco project managed by the DICT seems on the verge of naming the lucky winner of the third player race based on the highest committed level of service (HCLoS) involving price and internet speed. The winner will operate within a narrow corridor of performance: it has to offer faster internet service at the same or at a lower price than currently on offer. The winner shall have posted a performance bond of P14 billion which will be forfeited if its performance falls below committed levels. It will then have to spend P40 billion in the first year and P240 billion in the succeeding five years. Among the committed indicators is the allocation of the capital spending: 40% for operating expenditure, 20% for broadband and 40% for national coverage. By Nov. 7 at 10 a.m., we will know the lucky winner. Or will the prize be a “winner’s curse”?
A “winner’s curse” usually applies to auction outcomes where the bidders overestimate the present value of the asset under auction, overbid and the eventual winner pays much more than what the asset is worth. This is common in spectrum auctions where the asset under auction is a share of the electromagnetic spectrum. The true value of the spectrum depends upon the size and growth of the cellphone market which has inherent uncertainty attached to them. The bidding of the 3G radio spectrum in 2000 using the Vickrey or second price sealed bid auction raised astronomical revenues for European governments (£22.5 billion in the UK, e.g.). The overpaying winner defaults on its bid and the final harvest is a loss for all. Dominant cable operator NTL (National Transcommunication, Ltd.) in the UK failed its bid and sought Chapter 11 bankruptcy protection in 2002.
The DICT rejected the open auction preferred by the Department of Finance in favor of HCLoS. But HCLoS remains a tournament with the bid parameter being the highest committed level of service instead of the giveback to the government, as was in the auction for CALAX. One recalls that the PNoy government realized P28 billion giveback from the CALAX rebid and some people wondered whether Metro-Pacific fell into a winner’s curse. The HCLoS bidders could also overestimate the present value of the extra spectrum on offer and the market demand and bid too low a service price for a given internet speed which can translate into future financial losses. This will also be effectively a winner’s curse and can lead to default, forfeiture of the bond and dislocation.
telco
One cannot tell in advance with any accuracy whether a winner’s curse has resulted because it is an uncertainty gamble. When Manila Water won the East Side concession for water service in Metro Manila at P2.31/m3, some people thought Manila Water stumbled into a winner’s curse. But Manila Water made it work, while Maynilad — which started with a P4.96/m3 for the West Side concession — stumbled and the concession was sold to another company.
I am not privy to the details of the contract that the winner and the government will eventually ink but there will be surefire differences with the water concession contract. The water concessionaires were, in their own franchise area, true monopolists and are regulated by MWSS. The third telco will form a triopoly with the incumbents. The capital spending of the incumbents will not be subject to a floor like that of the entrant. And their capital allocation will not be circumscribed like the entrant’s. The entrant cannot presumably raise capital in the stock market where stocks are anonymously traded; since it may that way end up owned by the incumbent telcos. It is expected to expand coverage, presumably where the incumbents are absent. The absence of incumbents means that the unserved markets are unprofitable and thus would mean financial loses for the entrant. These strictures make for costly rigidities for the entrant. It is expected to compete in the same footing in the market with the incumbents but it starts with a handicap.
The impact of the third telco on consumer welfare depends upon the extent of the collusive behavior in the extant duopoly market and on the new efficiencies the third telco introduces. A third telco parleying a newer lower cost technology will exert competitive pressure on the incumbents but how much no one knows. This much we know. First, we know that San Miguel Corp. sat on a franchise owned by a subsidiary Vega Telecoms of the 700 MHz spectrum for six years before it was sold to the incumbents. A potential third telco player, especially one already owning a franchise and one with the financial clout of San Miguel Corp., should have already exerted a competitive pressure on incumbents to improve services. This is a variant of the effect of an extant “competitive fringe.” Although the collapse of the partnership with Telstra may have prompted the sale, a better explanation may be that the risk-weighted returns did not justify the investment in a market that had plumbed the depths of tingi-tingi. Second, the Philippines already had a triopoly in the past when Sun Cellular entered in 2001 and introduced unlimited call and text services. That prompted the two incumbents to offer a similar suite of services. But Sun Cellular itself could not sustain its early momentum and sold out to PLDT Smart. Third, in the 1990s, there were even more telco companies but which consolidated into two today. One can view this consolidation as a sinister rent-seeking conspiracy but it could just be scale and network economies. What if the current duopoly is a “natural duopoly,” in which case more than two firms is unsustainable?
 
Raul V. Fabella is a retired professor of the UP School of Economics and a member of the National Academy of Science and Technology. He gets his dopamine fix from hitting tennis balls with wife Teena and bicycling.

Driving TRAIN: Angara’s legacy

It is unfortunate that some quarters have criticized Senator Sonny Angara for his role in shepherding the tax reform legislation, known as TRAIN, in the Senate. These critics have even called on voters to reject Senator Angara, who is seeking reelection in 2019.
Though I had sharply criticized Senator Angara in the past for allowing vested interests to be accommodated, he ultimately had the TRAIN passed. It’s good enough that as the Chair of the Ways and Means Committee, he facilitated the approval of this landmark reform.
The critics have misunderstood TRAIN, but I am confident that in the future it will be seen as a turning point in Philippine economic history — for correcting decades-old structural problems in our tax system and for generating sustained revenue to finance long-term development.
It was certainly a thankless task for the reelectionist senator to take up tax legislation, in which the primary but contentious feature is an increase in the fuel tax and other excise taxes. He did not avoid his responsibility of sponsoring the TRAIN bill, and he delivered despite the political backlash.
Senator Angara no doubt is aware of the sad experience of Senator Recto who authored the unpopular E-VAT law during Arroyo’s presidency. Recto’s loss in the Senate was wrongly attributed to his championing the E-VAT. But then Gloria Arroyo was unpopular and her presidency had an asterisk. (Remember the crisis brought about by “Hello Garci”?)
Had Senator Angara derailed the TRAIN (and he was in a position to do so as Chair of the powerful Ways and Means Committee), we would have had trouble funding investments in education, health care, infrastructure, and other economic and social services. We would have risked downgrading our creditworthiness. We would have abandoned AmBisyon 2040.
Senator Angara may be many things, but his sponsorship of TRAIN suggests that he can have nerves of steel when he chooses to fight. Sponsorship of difficult but necessary reforms is not for the faint-hearted. One who can steer a critical measure despite its being controversial shows strength of character. That is admirable in a leader; some might even say such leader is presidential.
While TRAIN could have been better without the compromises, all in all, it is a good reform. One that will benefit not just the present but also future generations as Senator Angara said himself in his TRAIN sponsorship speech in September last year:
“As directly elected servants of the public, the Senate has and is continuously listening to our people. We have heard them cry out for many things… All of this is possible with [the] right mix of policy decisions. Decisions that will open up opportunities for our young population. A population which will stay young, well into the middle of this century. This is an advantage we have over our regional neighbors. If we invest heavily in our young people today, a generation from now, we will see more Filipino families leading comfortable and healthy and prosperous lives with better opportunities for their children, and their children’s children. The TRAIN is one of the crucial policy decisions we can make to move our country and our people forward.”
Now, I hope he can pass two other pending (and equally challenging) proposals in his Committee, namely the tobacco tax hike bills of Senators Manny Pacquiao and JV Ejercito (which will provide the funding for the Universal Health Care law and the TRABAHO bill (which will modernize fiscal incentives and expand investment opportunities).
Such will cement his legacy. He will distinguish himself from those who grandstand, those who are myopic, and those who have no guts. As the saying goes, no guts, no glory.
If there is a Sonny Angara legacy that we must remember, it should be Tax Reform. And this I will remember when I vote in the 2019 elections.
 
Karla Michelle Yu is a coalition builder and campaigner for Action for Economic Reforms.

An exceptional Filipina

On the shoulders of people with exceptional talent is the burden of exceptional responsibility. Those who step up to the plate and live up to this responsibility become exceptional people.
They are a rare breed whose work ignites meaningful change that transcends generations.
I recently met one such individual in the person of Evelin Weber. A Filipina born to an Ilocano mother and German father, Evelin spent her formative yeas in the Philippines until she moved to the US when she was 14. She studied at Syracuse University and went on to advanced studies at INSEAD.
She built a career as an investment banker working for the Citigroup, Solomon Smith Barney and then for the MAN Group. She was at the top of her game counting New York City, Los Angeles, Miami, London and Madrid as her base at one time or another.
Success in the investment banking world proved too diminutive for the Filipina with an incredible lust for life. She continued to pursue her passions despite the workload of her banking career. She became a certified sommelier, earned her license as an aeronautic pilot and became a published author having written the critically acclaimed novel, The Black & The White.” Eventually, she spent time at the Lawrence Anthony Foundation in South Africa contributing to its humanitarian and environmental preservation agenda. Her body of work is as diverse as it is impressive.
Evelin has since channeled her passion towards community and social work in the Philippines. The devastation wrought by Super Typhoon Yolanda was a turning point for her. The magnitude of loss to life and property and the sheer amount of displaced families were too compelling for her not to help.
She established The Philippines Foundation (TPF), an entity that focuses on community building programs. Its thrust is to educate women and children and empower them towards self sufficiency.
Among TPF’s project is one called “ The Learning Boats of Leyte.” The foundation donated 5,000 boats to fishing communities augmenting the pitiful 80 boats that government provided. The boats serves the dual purpose of providing a means of livelihood for the father while keeping the children in school.
The donation of boats to fishermen came with the precondition that they cannot be sold, leased or given to a third party. More importantly, fishermen are made to sign a contract which stipulates that the boats will only remain in their keeping for as long as their children continue to attend school. If the terms of the contract are broken, TPF reserves the right to re-assign the boat to another fisher family in need.
The foundation has a parallel program called “Portraits of Love” where it supports a hundred or so children from the Philippine Children’s Medical Center afflicted with terminal cancer. The foundation supports the kids not only financially but by facilitating art therapy. Its aim is to alleviate the grim reality of pain and death that these kids face.
The 5,000 boats assigned to the fisher folk are decorated with the artworks done by the terminally ill children, most of whom have passed on. Their names and works of art on the boats serve as a commemoration of their lives. In a way, it makes them part of the honorable livelihood of the fisher folk.
The boats also serve as pseudo classrooms for kids who otherwise spend their days playing by the seashore. Basic instructions on reading and writing are provided by volunteers with the boats serving as the desks and chairs.
Empowerment through education is at the heart of TPF’s work and Evelin is passionate about it.. She once said, “Look, you want to prevent global climate change? Educate people. You want to decrease the maternal mortality rate? Educate somebody. You want to get out of poverty? Well, educate somebody. You want to increase the lifespan of a child with cancer? Well, get yourself educated so you can help the kid. Education is so fundamental in making a difference”.
I COULD NOT AGREE MORE
TPF’s latest project is called “For the Love of Leyte,” a project designed to support the weavers, potters, painters and other artisans of Leyte, most of whom are stay-at-home mothers.
While local artisans are capable of producing well-crafted products that can easily be sold in the global marketplace, their lack of a bank account, access to financing and access to markets prevents them from selling their goods beyond the confines of their barrios. They earn less than P100 for a whole day’s work while producing beautiful handicrafts that can otherwise command top dollar in retail shops abroad.
TPF aims to fill impediments to trade, thereby providing local artisans with access to the global market.
Artisans who have signed up with TPF’s program are given a digital personality and digital wallet in TPF’s own website that also serves as its trading platform. TPF sells the handicrafts to global wholesalers who specialize in natural, handmade goods like the Bottletop Foundation in London and Nipa Hut in New York, among others. A fair price is charged for the products and 100% of the proceeds are remitted to the artisan through their digital wallet. Said proceeds can be monetized.
When orders come in, TPF provides the artisans with funds to buy their raw materials. It also takes care of the logistical aspects of the transaction such as documentation and shipping. It’s all about establishing the systems and infrastructure that enable the unbanked to transact beyond borders, says Evelin.
There are a few hundred weavers signed up for the project at the moment but Evelin hopes to expand this to 8,000 artisans by the year 2020. Not only will this make a tremendous impact in alleviating poverty, it will also ensure that the artful craft of weaving, pottery, etc. will not die with the artist. After all, cultural art is the thread that ties any indigenous society, one that has been honed and perfected through generations. This program is a way of preserving this legacy.
The program is now operational in Leyte and will soon be launched in Zamboanga and Ilocos, regions known for their indigenous crafts.
For now, 100% of the funding comes from Evelin. But now that proof of concept has been established, she hopes to attract people of like minds to join the effort and help in whatever way they can, whether financially or through the contributions of their time and fields of expertise. Evelin can be contacted through her e-mail, evelin@thephilippinesfoundation.org.
On Nov. 30 to Dec. 1, Evelin has organized an event called “For the love of Leyte Music and Arts Festival” which will be held at The Farm at Ginsiyaman, 30 minutes outside Tacloban. The festival will feature workshops on leather crafts, jewelry making, pottery, banig weaving, and tuba painting. There will also be a wholesale and retail trade fair and musical concert headlined by 20 foreign and local artists. Its going to be a two day party that celebrates Tacloban’s resilience, talent and bright future. Those coming from outside Leyte can camp within the farm grounds as well. Tickets can be purchased through www.mynila.com.
Meeting Evelin and getting to know her life’s work was inspiring to me. See, my wife and I have a 19-year-old daughter who we sent abroad to study. It’s never easy to be separated from family and many times, the sting of separation could get painfully acerbic. Still, we continue to support her foray abroad as we know this will give her the advantage to do good in life and career.
Her studies abroad comes with one condition — that at some point in her life, when she is well established, she must return to the Philippines and contribute to nation-building. This is her duty and our solemn pact.
Evelin’s story is still being written but even now, she shows us how to extract the last drop of nectar from the fruit of life and how to make it all matter. She is a contributor to nation-building by instigating positive change through her faculties and resources. She is truly an exceptional Filipina, the kind I would like my daughter to be.
 
Andrew J. Masigan is an economist.

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