#LetsStayTrue in advertising

August 8, 2018 | 9:38 pm

Who has not seen and heard advertisements of crispy, juicy, fried chicken that is soggy or as dry as a bone IRL (“in real life”)? Or pictures on the box of a product that looks different from the actual product?
What about advertisements that contain phrases using the weasel verb “help” – “helps fight,” “helps prevent,” “helps stop,” “helps you feel,” “helps overcome,” “helps you look”?
And then we have advertisements that exaggerate claims about a product’s or service’s benefits that are unsupported by evidence: a pain reliever that provides “extra pain relief” or is “50% stronger than aspirin” or that “upsets the stomach less frequently” or is “superior to any other nonprescription painkiller on the market.”
Perhaps worst are advertisements that use psychological appeal (for example, appeal to power, prestige, personal enjoyment, masculinity, femininity, curiosity, acceptance, approval, self-esteem, and self-preservation) to stimulate emotional needs. The most pervasive is the use of sexual pitches, often at the expense of one gender. These advertisements present a serious moral concern because they influence the emotions and the subconscious of the viewers.
Corporations cannot hold on to the traditional view of increasing value solely of shareholders. Consumers and corporations need to partner with each other to combat the ill-effects of unethical advertising. After all, corporations are expected to optimize profit. Optimized profit is the result when workers receive just wages and incentives; stockholders receive reasonable dividends; management receives remuneration and profit participation; consumers receive fair deals and prices; government receives correct taxes; the environment receives proper care to ensure that future generations will also benefit from it; and the community benefits tangibly from hosting the organization. Whatever is left as net profit is realized optimum profit.
Filipinos are generally reluctant to report incidents of being victimized by unethical advertising. We tend to avoid the hassle of reporting, showing proof, and fighting for our consumer rights. But we need to change our attitude and air our grievances conveniently and effectively. We need to go beyond the Milton Friedman mind-set of expecting corporations solely to act responsibly.
During my recent four-day vacation in Singapore, the MRT trains helped me get around the city-state easily. While taking the escalator toward the lower platforms of a train station, I stumbled upon an advertisement on the wall regarding Stay True, which caught my attention.
Stay True is an initiative of OCBC Bank, Singapore’s oldest established local bank. It is an online venue for Singapore-based consumers who have been lied to, duped by unclear communication, cheated by false claims, fooled by misleading promotions, and/or shocked by hidden restrictions to air their grievances and to post evidence of such malpractices. By using Stay True, a consumer can report an unethical advertisement from a particular industry, select a type of misleading advertisement, and state how he or she feels about it. Stay True encourages consumers in Singapore to join the conversation to make advertising truthful again.
Since its inception in January 2018, this platform has recorded 904 digital conversations, which are tracked using keywords.
These are some of the things consumers are saying: “Bought a slimming package to ‘lose 10kg in 3 months.’ Only my wallet got lighter.” “Got attracted by an IT Fair promotion, went down and found out it was for display units only.” “Saw an ad stating airfares from just $1. Went online to check, no such thing.” “Signed up for a credit card with attractive rebates, got ugly restrictions instead.”
Based on the same digital conversations, companies in Singapore with the least misleading ads include nongovernment organizations, hotels and restaurants, and retailers. On the other hand, industries with the most misleading ads include financial services, home services, and beauty products and services.
As of July 2018, those who reacted had the following sentiments about the advertisements: 159 of them were annoyed, 75 were angry, 40 were confused, 25 were sad, and 14 were speechless. The message of Stay True is clear: misleading advertising should not be the norm.
Even without government support, corporations should take the initiative to partner with consumers and the greater community they serve. They should continuously promote ethical advertising and practice self-regulation.
We consumers, on the other hand, should actively and objectively report through the appropriate social medium our views on the acceptability of various advertisements. We should voice our support of acceptable standards that advertisers need to meet or even exceed. Enough is enough. We cannot allow the proliferation of unethical advertising to dupe us into parting with our hard-earned money.
With such a consumer-corporation partnership, we consumers can avail ourselves of the best products and services we truly deserve. Corporations, on the other hand, can realize sustainable profits.
Unethical advertisements come from false prophets who have fooled followers. Ethical advertisements rake in true profits from loyal followers.

Alexander C. Trajano is a Lecturer at the Management and Organization Department of the Ramon V. Del Rosario College of Business of De La Salle University. He teaches Corporate Social Responsibility and Corporate Governance.
alexander.trajano@dlsu.edu.ph

Burning garbage

August 8, 2018 | 9:35 pm

I recently chanced upon an Aug. 2 commentary in The World Post about an emerging Dutch technology that aimed to address the negative effects of incineration. Written by Rachel Nuwer, a freelance journalist based in Brooklyn, New York, the commentary discussed how incineration could now be a “clean” alternative to solid waste management.
Incidentally, The World Post is a partnership of the Berggruen Institute and The Washington Post. The Berggruen Institute was founded in 2010 backed by a $500-million endowment. It is a Los Angeles, California-based, independent, nonpartisan think tank that is devoted to proposing and implementing new ideas of governance.
Reading the commentary, I began to wonder if we could still change public opinion, as well as public policy, opposed to or against incineration particularly of solid waste. To date, the Philippines bans incineration under the Clean Air Act of 1999 as well as the Solid Waste Management Act of 2000.
While I note that some quarters allege the existence of an ongoing lobby effort particularly in media in favor of incineration, let me assure you that this column is not part of it. I do not personally know any company or lobbyist directly or indirectly related to incineration. I would not have written this if not for what I believe to be relatively new information regarding cleaner technologies.
As Ms. Nuwer noted in her Aug. 2 commentary, the Energy Research Center of the Netherlands (ECN) has been working on “how to turn waste into electricity without producing more waste.” Referring to their system as “The MILENA-OLGA,” ECN has been looking into “a revolutionary carbon-neutral energy plant that turns waste into electricity with little or no harmful by-products.”
“We wanted to develop a technology to make the transition from fossil fuels to renewable energy possible in a realistic way,” Ms. Nuwer quoted Mark Overwijk, the director of the ECN’s biomass and energy efficiency unit, as saying. The goal, he added, was to make gasification “the centerpiece of a new circular economy…one based not on fossil fuels, but on biomass.”
Describing the process, Nuwer wrote: “The MILENA-OLGA process, which heats garbage to over 1,300 degrees Fahrenheit [705 degrees Celsius], is 11% more efficient than most existing energy-from-waste plants and over 50% more efficient than incinerators of a comparable scale. It’s also more environmentally friendly.”
“While the conversion from solid to gas does generate carbon dioxide, because it offsets fossil fuel energy and does away with landfills that would eventually produce methane, it is ultimately carbon neutral or environmentally beneficial. The process also emits zero wastewater and produces no particulates or other pollutants. Just four percent of the original material is left over as inert white ash, which can be used to make cement,” she added.
The MILENA-OLGA system is said to be capable of powering turbines similar to those used for generating electricity with natural gas. Studies are also being made to determine if the gas the system produces can be directly used by gas utilities, and whether the product can be “synthesized to make jet or diesel fuel or virtually any of the thousands of things traditionally made with fossil fuels, including plastics, clothing, cosmetics and computers.”
One “success” story, Ms. Nuwer noted, involved a Palestinian refugee who risked investing in the new “clean” technology. Ibrahim Al-Husseini wanted ways to deal with the global garbage problem, noting that landfills release hundreds of millions of tons of methane into the atmosphere, while burning trash also releases toxic chemicals.
The garbage problem, Ms. Nuwer wrote, pushed Al-Husseini to establish in 2013 the FullCycle Energy Fund, an investment firm dedicated to turning trash into clean energy. She quoted Al-Husseini as saying, “Garbage has value, so why are we throwing it away?” Through his investments, the MILENA-OLGA system has had help taking off.
To date, several plants have been built, including a 3.5-megawatt plant in Portugal and a 4.8-megawatt plant in India. Plants are being considered in Costa Rica and California, and opening next year is a 30-megawatt project outside Bangkok. Also said to be in the pipeline are “mini-units” for “on-site, locally generated energy for people on islands, off-grid locales or disaster sites.” Last year, additional investments into the new technology came in from Caterpillar Ventures.
Obviously, it will take a lot more than these recent developments to change our people’s and policy makers’ minds regarding incineration. Those zealously opposed to any form of waste incineration, much like those fiercely opposed to any form of coal-generated electricity, also deserve the opportunity to present their case against these supposedly “clean” technologies.
There will always be at least two sides to any argument or debate. It is important that we are open to listening to all sides. At the same time, greater effort should be made to make credible information readily accessible to those who wish to make an informed decision regarding the matter. And, people should be given the chance to voice their support or concern.
I believe that the government’s mandate is clear: Priority should always be economics over politics; environment over business profit; and, saving the planet first, then saving the republic after. In this line, since technology is dynamic and ever-changing, so should public policy be. We should be open to revising laws to make them serve us in better ways.
We have had legislation in place for almost 20 years that banned incineration. Overall, perhaps the ban has done us — and the environment — a lot of good. But, with what is now emerging, and whatever else that can come after, we should remain open to reconsidering or lifting that ban in the future, if doing so will promote the greatest good – both for the planet and people.

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippines Press Council
matort@yahoo.com

The subtleties of authentic influence

August 8, 2018 | 9:34 pm

By Raju Mandhyan
TODAY, I complete and count nearly twenty-one years since I entered the world of public and then professional speaking. Within the first year of being part of a very elite group of professionals at the Executive Toastmasters Club of Makati, the club appointed me president.
Surely I’d had some experience in leading teams, building business and even being the chief honcho of other business-oriented organizations but I’d never had the experience of being at the helm of a team made of people coming from different walks of life, from diverse backgrounds, and with no material stakes and agenda in the organization except the fact that it was a self-learning volunteer group.
For groups such as this, the leader really has very little assigned power at his disposal and is needed to still drive, succeed, and make the organization flourish.
Towards this end, I thankfully, consider myself to have been blessed to have an amazing mentor and coach in the form of the group’s former president, one Mr. Horacio S. Sese also nicknamed, as many people in the Philippines are, as Rexy. People generally used to hail him “Sexy Rexy.”
Rexy used to have this amazing way of making me think, visualize, verbalize, and then act and follow through with what was needed, what was productive, and everything that moved forward a team that was loosely gelled, tender, and haphazard stakes in doing so. I must also add to this that whatever Rexy guided me into doing was also always ethical and in service of others, something bigger than myself.
Though it has been over twenty years since then, here are a few subtleties about Rexy and his styles which influenced me to perform and grow:
Reputation. In my first few interactions with him, I picked up cues that Rexy knew what he was talking about and doing. Much more important than my own assessment of him almost everyone spoke well of him and looked up at him. This kind of presence and reputation isn’t and wasn’t downloadable from any source but it had been built over the years brick by brick and inch by inch. It was rock solid, dependable, and reached you before the person behind it did.
Respect. I was and still am twenty years younger than him. I was and still might be twenty years greener than him in many areas of life and in a world where power is wielded hierarchically; Rexy never let these differences show. For him, in reality, they did not exist and he treated me and all with others with massive courtesy and respect with every little word and every little micro-gesture. He never spoke at me. He did not highlight my lack of experience and know-how. He never disturbed my time without first seeking my permission.
Rapport. You can already guess by the fact that he allowed young and old to address him as “Sexy Rexy,” that he was also a fun and easy-going guy. There was barely any hot air in his hairy head. He had this uncanny ability to meet people in their own way, at their own level and use lightness and respect to win their trust and rapport rapidly. Regardless of how unique, urgent or ambiguous the tasks at hand were, Rexy made it a point to acknowledge and care for the person behind the task, namely me.
Research. This probably is not the precise word for the point I am trying to make but it fits into the theme and the scheme of things. Every time there was work to be done or little tasks that were probably behind time, Rexy’s conversations would start with exploring the background of the tasks at hand. After that he’d explore my thoughts and feelings about the work at hand. Gently, then he used to check if I had the resources and the support. Towards closing the conversation he’d get confirmations in such a way that would make me feel as if I were the lead and as if all the ideas were of my generation and which, in fact, was usually true. In our conversations, his open-minded, exploring way of guidance had me bursting with ideas and intentions to flourish. He never ever delegated. I owned all that I put out.
Request. Now just in case, wherever he had a need and not that I remember him having any, his mode, his demeanor was, always, as if he were making a request. I didn’t know how he did that. I don’t know where and how he acquired such a skill set but it was and still is mind-blowing. Over the years I have tried to imbibe that behavior and that demeanor and I am not sure if I have it but is a powerful and shall always remain on my wish list of things I want to be. I want to be like Rexy the Sexy.
In a world, today, that has exploded into the virtual domain where people live half their lives stuck to their smartphones and laptops; where social and business interactions thrive in the digital space these five subtleties can and will always rule all forms of dealings and interactions.
Your abilities to authentically influence the marketplace and your stakeholders will depend on your reputation, your respect for who they are, your abilities to acquire rapport, your abilities to research their needs and desires and your abilities to turn your needs from claims to request will not just make you social and business leaders but leaders who innovate and influence authentically.

Raju Mandhyan is an author, coach, and trainer.
www.mandhyan.com

Peso drops further vs dollar

August 8, 2018 | 9:00 pm

THE PESO declined ahead of the central bank’s policy decision. — *AFP*

THE PESO weakened against the dollar on Wednesday due to a wider trade deficit and as market players await for the central bank’s monetary policy decision.
The local unit closed at P53.07 on Wednesday, seven centavos weaker than its P53-per-dollar finish on Tuesday.
The peso opened the session stronger at P52.93 versus the dollar, which was also its best showing for the day. Meanwhile, it slid to an intraday low of P53.08 against the greenback.
Dollars traded climbed to $721.15 million from the $681.5 million that switched hands the previous day.
In an e-mail, a foreign exchange trader said the peso weakened “on account of expectation of softer trade data.”
The country’s trade deficit stood at $3.35 billion in June, narrower than the $3.7 billion deficit in May but more than double the $1.59-billion shortfall in the same period last year.
“Although the trade deficit tightened a bit month-on-month, it’s still grew wider year-on-year,” another trader said in a phone interview yesterday. “Although it is widely expected for the figure to come out like that, the peso is still on the defensive side on the back of weak exports and higher imports.”
The trader added that the market is still awaiting the monetary policy decision of the Bangko Sentral ng Pilipinas (BSP) at its meeting today. The monetary authority is widely expected to raise its benchmark rates anew this week, with some economists looking at a 50-basis-point (bp) increase to ease price pressures.
BSP Governor Nestor A. Espenilla, Jr. told reporters in a text message on Tuesday that the central bank will consider all the latest data updates in determining the “strength” of its follow-through response in its meting.
“The market is already expecting for a 50-bp hike. But what if the BSP only raised by 25-bp? How will the market react to it? We’ll have to wait for that and we’ll take the clue after the release,” the trader said.
The trader noted that market players will also watch out for the second-quarter gross domestic product (GDP) growth data due for release today, although the focus remains on the possible rate hike.
“Unless we see something that’s significantly higher or lower than expected, I don’t think we will see a big move following the GDP growth release.”
Meanwhile, the first trader said the peso weakened as demand for the dollar propelled following the fresh bond offerings by the US Treasury.
For Thursday, the first trader expects the peso to move between P52.90 and P53.10 versus the dollar, while the other gave a P52.95-P53.20 range. — Karl Angelo N. Vidal

Shares rebound ahead of BSP policy review, GDP

August 8, 2018 | 9:00 pm

POSITIVE first-half corporate results buoyed local equities on Wednesday, with some investors also optimistic about second-quarter economic growth data and the central bank’s policy meeting today.
The bellwether Philippine Stock Exchange index (PSEi) rose 1.62% or 125.61 points to close at 7,851.46 Wednesday, August 8. The broader all-shares index also climbed 1.57% or 73.02 points to finish at 4,708.61.
“Philippine stocks closed higher on the release of corporate earnings, with some already placing bets ahead of the BSP (Bangko Sentral ng Pilipinas) meeting and GDP (gross domestic product) release,” Regina Capital Development Corp. Managing Director Luis A. Limlingan said in a mobile phone message.
He said heavyweights like SM Prime Holdings, Inc. and Ayala Land, Inc. boosted the index as the former reported a double-digit income growth for the first semester of the year while the latter expressed plans to offer bonds before yearend to finance its capital expenditure.
“We can also assume that investors are anticipating for the release of the 2Q GDP reports [today] which, according to consensus, may hit 6.8%,” Jervin S. de Celis, trader at Timson Securities, Inc., said in a mobile message yesterday.
Should the actual figure match expectations, the country’s economic performance from April to June would log a faster pace compared with the first quarter’s print, which was revised down to 6.6% from 6.8%.
Investors focused on these local developments and brushed aside recent developments in the trade tensions between the China and the United States, according to Mr. Limlingan, who noted regional markets’ performance likewise pushed up buying sentiment at home.
All sectoral counters finished with gains on Wednesday.
Services led the rally, soaring 3.18% or 47.55 points to close at 1,540.51. Industrials jumped 2.06% or 225.53 points to 11,125.09; property climbed 1.89% or 72.3 points to 3,888.59; holding firms went up 1.29% or 99.66 points to 7,776.12; mining and oil increased 0.7% or 71.91 points to 10,290.33; and financials ended higher by 0.5% or 9.35 points to 1,862.68.
Value turnover increased to P8.64 billion from Tuesday’s P5.22 billion as 1.25 billion issues changed hands.
Advancers outnumbered losers, 116 to 75, while 52 issues were unchanged.
Foreigners turned buyers, with net purchases logged at P325.87 million, a reversal of Tuesday’s net sales worth P112.43 million.
Most other Southeast Asian markets gained in line with broader Asian peers, supported by upbeat Wall Street earnings.
Asia shares ex-Japan rose modestly in the middle of a strong second-quarter US earnings season and on expectations that Beijing will ramp up fiscal stimulus to cushion the impact of its trade dispute with Washington.
The benchmark S&P 500 was within striking distance of a record high on Tuesday, powered by gains in technology stocks. — Janina C. Lim with Reuters

Economic managers flag costs of federal charter

August 8, 2018 | 8:54 pm

By Camille A. Aguinaldo, Reporter
FINANCE Secretary Carlos G. Dominguez III on Wednesday said he was left “confused” with the proposed federal charter following a meeting with members of the Consultative Committee (ConCom) to review the 1987 Constitution.
During the second day of the national budget briefing of the Development Budget Coordination Committee (DBCC) to the Senate on Wednesday, Mr. Dominguez said the draft charter did not clearly provide a road map on how to deal with the national debt, among others.
“The draft, as it is right now, does not lend itself for financial analysis. I’ll give you an example: I sat with members of the Commission and my first question was how will they see that the national debt will be paid, the military, the foreign affairs, central bank will be paid? They said, ‘Don’t worry about that, the split will be after the national — those expenses,’” he said, reiterating what he said Tuesday on the first day of the budget briefing.
“But I said it’s not in the draft. It’s not there. So I said, what are you telling me? How can we compute? We don’t know what the final road map is going to look like. So I had a long discussion with them. And quite frankly, I was more confused than when I started,” he added.
Asked by Senate Minority Leader Franklin M. Drilon if Mr. Dominguez will vote against the ratification of the draft Charter, the Finance Secretary gave a resounding reply: “Absolutely! Yes. But it is good that it is being discussed by the wise legislators. You have to bring out those points.”
At the briefing, senators quizzed the economic managers on the possible cost and impact of the shift to a federal form of government. Senator Francis G. Escudero questioned the funding of the information campaign on federalism when the proposed Charter remained a draft, being still subject to changes.
Socioeconomic Planning Secretary Ernesto M. Pernia said the cost of federalism may be P120 billion, based on their estimates.
“But this is just a direct cost. Remember there will (be) indirect cost like disruption in the projects and other things, maybe our growth momentum will be disrupted also,” he said.
Senator Loren B. Legarda, chair of the Senate committee on finance, turned cautious upon hearing Mr. Pernia’s remarks and requested the economic team to provide a comprehensive report on the direct and indirect costs, as well as the impacts of the draft Federal Constitution’s implementation.
“That will affect everything if projects will be delayed because of the change of the form of government. And we’re not even sure if we’re changing from the present to what?” she said.
Senate President Pro Tempore Ralph G. Recto also asked Mr. Dominguez about the possible effects of the draft Charter if applied to the 2019 budget, especially the provisions giving federated regions 50% share of collected taxes.
Mr. Dominguez said the government will incur a very large deficit that would affect the country’s credit rating.
“What would happen to our credit rating?” Mr. Recto asked.
“Oh, it will go to hell,” Mr. Dominguez replied.
“When the credit rating goes to hell, what happens to the Philippines?” Mr. Recto pressed.
“Everybody pays higher interest rates,” the Finance Secretary said.
Asked about the impact of federalism to the government’s Build, Build, Build infrastructure program, Mr. Dominguez also said, “Well I guess it will be, maybe it’s not Build-three, it’s minus three, derailed.”
CONCOM RESPONSE
In a statement responding to the remarks at the Senate by Mr. Duterte’s economic managers, ConCom Senior Technical and Media Officer Conrado I. Generoso said, “Fiscal administration is quite clear in the draft Constitution. The Federal (national) government basically retains the taxation power, except for selected taxes and fees the collection of which will be transferred to the regional governments. Using 2017 data, these amount to about P60-70 billion.”
Mr. Generoso added: “The sharing of the collections from top-four sources of revenues shall be 50% for the federal government and 50 percent for the regional governments. In 2017, these amounted to over P2 trillion. This means the regional governments shall receive at least P1 trillion divided equally among them or P57 billion per regional government—it is money that will be released to them automatically.”
“Internal revenue allotment will no longer be a concern of the federal government. The power to distribute the shares of the LGUs will belong to the regional government. The corresponding amount is part of the one trillion pesos that correspond to the 50 percent share of the regions in the top four revenue sources.”
“Who will pay for the national debt, military, DFA, Bangko Sentral? By definition of exclusive powers that belong to the federal government, these will all be concerns of the federal government. The budgets allotted for debt service, national defense, foreign affairs are untouched and remain intact with the federal government under the draft charter. Congress continues to have the power to appropriate the budgets for these concerns—which are all federal. The BSP is the single agency responsible for monetary policies, which is an exclusive power of the federal government, thus if it ever needs additional capital, the federal government will provide for it.”
“In all, the federal/national government has more than P3 trillion cash each year (based on 2017 data), including borrowings. A little over P1 trillion will go to the federated regions — the taxes and fees that they will collect and the equal share in the top four revenue sources. The federal government will have more than P2 trillion left in its coffers, which will cover for the cost of its operations, including the budgets for national defense, foreign affairs and debt service. Much of the functions and duties of the regional offices of the different departments will be transferred to the regional governments, thus there will be a corresponding reduction in the regional budgets of the different departments,” Mr. Generoso said.

BoC cites shipment bust as ‘one of biggest drug hauls’

August 8, 2018 | 8:53 pm

A JOINT operation by the Bureau of Customs (BoC) and Philippine Drug Enforcement Agency (PDEA) has busted “one of the biggest drug shipments in the country’s history,” the BoC said in a statement on Wednesday.
Seized at the Manila International Container Port on Tuesday were about 500 kilos of methamphetamine hydrochloride or shabu estimated at P3.4 billion. The bureau said the drugs were hidden in two magnetic scrap lifters stored in a 20-foot container.
“The port operator of the MICP has sent a notice of abandonment on July 30 to the MICP district collector, 30 days after the consignee failed to file an entry for the shipment which arrived on June 28,” Commissioner Isidro Lapeña said.
While waiting for the examination, the BoC received information from PDEA about a shipment to MICP allegedly containing illegal drugs.
Upon inspection of the abandoned shipment from Malaysia, BoC and PDEA authorities found two magnetic scrap lifters inside which were concealed the shabu.
MICP District Collector Vener Baquiran has issued a hold order to prevent shipment’s release from BoC’s custody.
Preliminary investigation showed that the shipment belongs to Vecaba Trading of No. 712 Galicia St., Sampaloc, Manila. Records show that the company is owned by a certain Vedasto Cabral Baraquel and is not accredited with the BoC, the agency said in its statement.
“This is the biggest shipment seized since I assumed as the BoC chief in August 2017,” Mr. Lapeña was quoted in the statement as saying.
“The fact that we prevented the shipment to go to the market is an indication that some BoC employees do not want to cooperate with them. I would like to warn them if they still have dealings with drug syndicates because we will eventually catch up with them,” the bureau chief said.

Caution urged on ban of single-passenger cars along EDSA

August 8, 2018 | 8:53 pm

SENATOR Grace S. Poe-Llamanzares on Wednesday urged the Metro Manila Development Authority (MMDA) not to rush the implementation of the proposal banning single-passenger cars along EDSA.
In interview with reporters, Ms. Llamanzares, who chairs the Senate committee on public services, said the MMDA must ensure the inner roads around EDSA should be cleared first before enforcing the proposal to ensure smoother traffic flow.
She also asked the metro traffic agency to conduct a dry run on the proposal, study carefully the matter, and publish a clear set of guidelines.
“What I can say is that they should not be careless… This can be done in other countries and it’s successful because they have many alternate routes In our country, EDSA is our main thoroughfare. Other roads are congested,” she said.
“Unless you can guarantee the illegally parked vehicles in Mabuhay Lanes are removed and cleaned in coordination with local governments, do not just ban vehicles from plying EDSA,” she added.
The MMDA earlier said the Metro Manila Council composed of metro mayors has already approved the so-called high occupancy vehicle scheme which will be implemented on EDSA during rush hours. This meant single-rider cars or those without passengers will not be allowed along the major thoroughfare.
For his part, Grab Philippines country head Brian P. Cu said the company will dialogue with authorities and regulators to seek clarity on the proposal, given that its ride-sharing vehicles may be affected. He also said similar systems existed in other countries as well to which Grab had adjusted accordingly.
“Rest assured we will do our best to also make it work here. We have always advocated ways to improve mobility. We already have Grab Share here, and Grab Hitch in Singapore, supporting the same principle in ride-sharing. Grab has improved mobility in five years and we will continue to do so,” Mr. Cu said in his Facebook post. — Camille A. Aguinaldo

SWS poll shows ‘extremely strong’net approval for National ID system

August 8, 2018 | 8:53 pm

A SURVEY by the Social Weather Stations released Tuesday night showed 73% of respondents approving a National ID system.
Net approval for the recently enacted identification system was an “extremely strong” +55, according to the polling group’s 2^nd quarter survey, conducted June 27-30.
The survey showed three out of five respondents saying the National ID system will be a big help to them.
On whether the government can be trusted to protect private information contained in the National ID,” 61% agreed, and 8% disagreed, leading to a net agreement score of “extremely strong” +53.
The survey also found that 49% have much trust, 39% are undecided, and 13% have little trust that the government will not use the National ID against those who oppose them. This gives a net trust score of “good” +36.
The non-commissioned survey was conducted among 1,200 respondents: 300 each in Metro Manila, Balance Luzon, Visayas, and Mindanao, with sampling error margins of ±3% for national percentages, and ±6% each for Metro Manila, Balance Luzon, Visayas, and Mindanao.
In a related development, the Philippine Statistics Authority (PSA) on Wednesday said it is considering a privacy impact assessment of the Philippine Identification System (PhilSys) to identify and minimize privacy risks in the newly-enacted system.
“With the advice of the National Privacy Commission (NPC), we plan to have a Privacy Impact Assessment of our National ID System, which should be done by a third party. This is just to assure everyone that PSA has already instituted proper rules, guidelines, both technical and processes to ensure privacy of our citizens and those that are in the database,” National Statistician Lisa Grace S. Bersales said in a press briefing at Malacañang on Wednesday morning, Aug. 8.
She added that PhilSys “will only answer who you are and who you really say you are…”
“So, its primary objective is to provide identity to citizens and resident aliens in the Philippines; and for those that they will transact with, to be able to authenticate their identities,” Ms. Bersales also said.
There will be 11 demographic details that will be put in the ID, according to Mr. Bersales, “[three] of which are optional. Then, we will have the biometrics. These information are the only ones that will be in the PhilSys data base.”
The information will include full name, birthday, birth place, sex, blood type, address, nationality. The biometrics will include facial image, iris image, and ten-finger capture. The optional details are marital status, e-mail address, and mobile number.
The PSA, according to Ms. Bersales, continues to seek inputs and feedback from the public and other stakeholders as it develops its implementation plan.
As for the budget, the PSA has P2 billion in the General Appropriations Act (GAA) for fiscal year 2018. “I would like to say that we have not utilized it, because we were waiting for the President to sign the bill into law just so we have the legal basis for utilizing the budget,” she said.
The official also said non-holders of the National ID will encounter “difficulty” in doing business with the government and the private sector.
“The requirement for doing business will be the National ID. It’s really more about accessing benefits. But if they don’t want to access benefits from government, then they will not really need to have an ID,” Ms. Bersales said. — with a report by Arjay L. Balinbin

DoJ ordered to look into Nayong Pilipino lease contract

August 8, 2018 | 8:53 pm

By Arjay L. Balinbin, Reporter
Malacañang on Wednesday said President Rodrigo R. Duterte has ordered the Department of Justice (DoJ) to review the contract lease entered into by Nayong Pilipino Foundation, Inc. (NPFI) with Landing Resorts Philippines Development Corp. (LRPDC).
“Sinabi po ni Presidente na pina-review niya po iyong kontratang iyan kay Secretary Menardo I. Guevarra ng DoJ,” Presidential Spokesperson Harry L. Roque, Jr. said in an interview with DZMM on Wednesday morning, Aug. 8. (The President said he asked Secretary Menardo I. Guevarra of the DoJ to review the contract.)
“Naniniwala siya na talagang grossly disadvantageous to government po itong kontratang ito at hindi talagang pupuwedeng hindi ma-sanction legally, dahil nga sa kawalan ng bidding,” Mr. Roque also said. (The President believes the contract was grossly disadvantageous to the government and should be sanctioned legally because there was no public bidding.)
On Tuesday, Mr. Durterte fired the entire board of the NPFI.
Sought for comment, Mr. Guevarra said in a text message to Palace reporters that he has already instructed the Office of the Government Corporate Counsel (OGCC) to look into the contract.
“The DoJ exercises supervision over the Office of the Government Corporate Counsel. I have instructed the OGCC to review very carefully the previous legal opinion rendered by the agency to Nayong Pilipino Foundation, Inc., which apparently paved the way for the execution of the controversial lease contract with Landing Resorts Corporation,” he said.
The Justice Secretary also said that “this review of all antecedent facts and relevant documents will guide the government in determining the proper course of action with respect to the lease contract.”
For its part, the Public-Private Partnership Center issued a statement on Wednesday clarifying the background of the New Nayong Pilipino Entertainment City project.
“As a PPP project, the New Nayong Pilipino Entertainment City project undertook a market sounding activity (on) February 9, 2017, to gauge the investors’ appetite for the project,” the statement said. “However, (on) October 26, 2017, the former Nayong Pilipino Foundation chairperson Patricia Yvette M. Ocampo wrote a letter to Socioeconomic Planning Secretary Ernesto Pernia informing him that the Board of Trustees of the NPF has approved the withdrawal of the NPF for assistance from the PPP Center for…(the) project.”
“Given that advice from the NPF Board, the PPP Center delisted the project. It is not officially part of the PPP pipeline since October 2017. To date, the NPF has not communicated to the PPP Center any updates since its withdrawal.”

Senator to block tax reform provisions seen to spike up tuition fees

August 8, 2018 | 8:53 pm

By Camille A. Aguinaldo, Reporter
SENATOR Paolo Benigno A. Aquino IV said he will block the removal of the 10% preferential tax rate for private non-profit schools under the second package of the tax reform program filed in the Senate.
In a statement issued on Wednesday, the senator said the removal of such provisions will lead to increase in tuition and other fees. He said these institutions may be taxed up to 25%, more than double their current rate.
“In the end, the families sending children to school will be bear the burden so the tuition fee will increase,” a statement from the senator’s office quoted him as saying in Filipino.
Under the present system, non-profit proprietary educational institutions receive a preferential 10% income tax rate, together with non-profit hospitals, offshore banking units, and regional operating headquarters.
The Senate version of the bill removed the 10% preferential income tax rate provision in the National Internal Revenue Code (NIRC) for proprietary educational institutions and hospitals.
Meanwhile the House version of the bill retained the said 10% income tax rate, but provided a condition that the institutions’ performance must comply with the criteria provided by the Commission on Higher Education (CHEd), Department of Education (DepEd), and Department of Health (DoH).
Institutions which fail to meet the standards will have to pay 10% income tax which will eventually increase to 15% and later to 20% at a specified period if the performance remains below standards, the House bill stated.
Sought for comment, Finance Undersecretary Karl Kendrick T. Chua, citing the House version of the bill said: “Schools do not need to be scared if their performance is good….If they are performing, nothing will change.”
For his part, Senate President Vicente C. Sotto III, author of the Senate version, said, “Those are unclear provisions. That has yet to be debated.”
Senate Bill No. 1906 or the proposed Corporate Income Tax and Incentives Reform Act seeks to gradually cut corporate income tax to 25% from 30% and rationalize the existing investment tax incentives. The said bills remain pending in the committee level.

Nationwide round-up

August 8, 2018 | 8:52 pm

Ocampo, 3 others declared ‘non-parties’ in case tagging CPP-NPA as terrorist group

A REGIONAL court in Manila has declared former leftist Bayan Muna representative Saturnino “Satur” C. Ocampo, United Nations Special Rapporteur Victoria Tauli-Corpuz, and two others as “non-parties” in a petition filed by the Justice department tagging the communist groups in the country as terrorists.
In a resolution dated July 27, the Manila Trial Court ruled that Mr. Ocampo and Ms. Corpuz, along with National Democratic Front of the Philippines consultant Rafael Baylosis and former Baguio politician Jose Melencio Molintas, should not be included in the case as the Department of Justice (DoJ) failed to clearly establish their ties with the Communist Party of the Philippines (CPP) and its armed wing, the New People’s Army (NPA).
The resolution, signed by Judge Marlo Magdoza-Malagar, stated that Mr. Ocampo and Mr. Baylosis are considered non-parties because the DoJ did not indicate their association to the CPP-NPA clearly and “any personal account in evidence thereof must be up-to-date.”
For Ms. Corpuz and Mr. Molintas, the court said “there is nothing in the Petition or its attachments” that points to their being officers or representatives of the CPP-NPA.
Atty. Rachel F. Pastores, legal counsel to Mr. Ocampo and Mr. Baylosis, said in a statement that the DoJ should just drop its petition.
“In the absence of any evidence against them, the DoJ should just withdraw the petition for proscription,” Ms. Pastores said.
“The court order is proof that the case, where allegations have been recycled countless times, reeks with ill-motive and red-tagging,” she added.— Gillian M. Cortez

Justice chief wants DoJ hold order power

THE JUSTICE secretary is hoping that Congress will pass a law granting the Department of Justice (DoJ) the authority to stop people under preliminary investigation from leaving the country.
DoJ Secretary Menardo I. Guevarra, in a text message to reporters on Wednesday, said while they welcome the Supreme Court’s (SC) recent approval of the Precautionary Hold Departure Order (PHDO), he hopes that “(C)ongress will enact a law that will directly empower the SOJ (secretary of justice) to restrict the right to travel of persons under preliminary investigation for very serious offenses, subject to constitutional limitations.”
The SC on Tuesday approved the PHDO, to be issued by courts, which will prevent persons in cases involving crimes where the minimum penalty is at least six years and one day from departing the Philippines even before they are formally charged.
The PHDO should be filed by a prosecutor with a regional trial court.
SC spokesperson Theordore O. Te said on Tuesday that the prosecutor must prove upon application of the PHDO that “There is a high probability that the subject will depart from the Philippines to evade arrest and prosecution of crime against him or her.”
The PHDO would be valid until the court decides to recall it or upon paying a bond, to be determined by the court.
Last April, the high court declared that the Justice secretary has no right to issue hold departure orders or watch list orders by ruling that DoJ Circular No. 41 is unconstitutional. — Gillian M. Cortez

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