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Prayer

A Muslim prays at the Salam Mosque in Culiat, Quezon City on June 14, the last day of the Ramadan and the eve of the Eid al-Fitr celebration. — PHILSTAR/MICHAEL VARCAS

Yolanda-hit town opens office-cum-evacuation center

JICA PHOTO RELEASE

THE REHABILITATED municipal office of Marabut. a fifth-class town in Samar, was recently inaugurated, with the building designed to double as an evacuation center during typhoons and other calamities. The project is part of the 4.6 billion yen (P2.2 billion) comprehensive aid package of the Japan International Cooperation Agency (JICA) for areas hit by super typhoon Yolanda (international name: Haiyan) in 2013. “This municipality hall we handed over Friday, June 15, was built based on Japanese standards that emphasize quality and safety using the concept of Build Back Better,” JICA Chief Representative Yoshio Wada said in a statement released June 14. The JICA Grant Aid Assistance for Typhoon Yolanda Rehabilitation and Recovery also includes rebuilding of schools, rural health unit, and providing training and equipment on disaster resilience for various government agencies and other institutions.

Duterte son to file charges vs Trillanes

PRESIDENTIAL SON Paolo Z. Duterte is set to file criminal and civil charges against Senator Antonio F. Trillanes IV for implicating him in the smuggling of about P6.4 million worth of the illegal drug shabu last year. In a statement released Thursday, Mr. Duterte said he is filing the cases against Mr. Trillanes for “viciously destroying my name, maligning my reputation and integrity, and for deliberately manufacturing lies and spreading black propaganda against me.” Mr. Duterte resigned as Davao City mayor last Dec. after appearing before the Senate to deny the accusations against him. The President’s eldest son said Mr. Trillanes was apparently emboldened by his false reliance on and abuse of his parliamentary immunity. “But this immunity does not apply to libelous remarks made during media interviews, clearly as these attacks were done outside the halls of the Senate — and definitely not when these were discharged with the pure intention of destroying me,” he said. — Carmelito Q. Francisco and Carmencita A. Carillo

Cagayan de Oro gets Japanese grant for better flood warning system

A 1.278 billion yen (P608 million) grant for improving the flood forecasting and warning system in Cagayan de Oro City was signed June 13 by the Japanese and Philippine governments. In a statement released Thursday, June 14, the Japanese Embassy in Manila said the project “will strengthen the ability of CDO against future risks of flash floods, mud slides and other negative impacts, thus contributing to sustainable development in the region.” Cagayan is as the regional center of Northern Mindanao. The project covers support for the operational system for flood forecasting and disaster prevention.

Nation at a Glance — (06/15/18)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Auto sales fall 13.7% in May amid ride-sharing industry consolidation

AUTO SALES fell 13.7% year-on-year in May, including a 19.6% decline in the sales of cars, according to the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI).
CAMPI released only a table of sales numbers showing volume of 30,620 autos shipped to buyers in May. It did not accompany the table with a statement discussing the reasons for the sales decline, though car dealers have said that they expect higher auto excise taxes in force at the start of 2018 to dampen sales.
The May report comes amid consolidation in the ride-sharing industry, which is a leading buyer of cars, after Uber Technologies Inc. announced its withdrawal from Southeast Asia in March.
The Bangko Sentral ng Pilipinas (BSP) also raised interest rates on May 10, possibly clouding the outlook for future car transactions financed with loans.
CAMPI, one of two automotive associations that supplies statistics about auto sales, counts among its members the car companies that assemble locally, and its sales figures reflect the state of the market for mass-market cars, as opposed to higher-end cars which tend to be imported.
In the five months to May, auto sales fell 10.3% to 142,240 units, CAMPI said.
In May the single biggest year-on-year decline was posted by the Asian Utility Vehicle (AUV) segment at 4,606 units, though the total rose 33.9% from April.
Sales of commercial vehicles, which are a proxy for durable-goods investment and broader economic activity, fell 10.8% year-on-year in May to 21,219 units. In the five months to May sales fell 10.5% year-on-year to 94,022 units.
Car Sales in PH

Electronics industry expects to hit $50-B export level by 2030

By Janina C. Lim
Reporter
THE Semiconductor and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) said its industry road map sets a 6% annual export growth target which will help it achieve its $50 billion target for export sales by 2030.
The plan, known as the Products and Technology Holistic Strategy (PATHS), copies of which were provided to reporters, identified products and technologies to focus on to ensure the industry’s competitiveness in the coming years.
SEIPI said it is pinning its hopes on “sunrise” products in the semiconductor, consumer electronics, office equipment, instrumentation and control, automotive electronics, telecommunication, medical, electronic data processing, and solar and renewable segments.
In semiconductors, SEIPI will be focusing on smart sensors with photonic and navigation applications, as well as memory chips for use in the so-called Internet of things (IoT).
In the telecommunications sector, the industry will emphasize gateways and enabling technologies like IoT hardware, specifically devices for smart agriculture.
SEIPI also noted that the medical sector is investing more in clinical care and remote health monitoring systems and cancer-detecting lasers.
In the consumer electronics segment, SEIPI will be banking on expected massive demand for wearable devices, smartphones and smart home devices.
In office equipment, the group will look into opportunities in the manufacture of 3D printers.
SEIPI’s road map also took note of a global shift towards robotics and increased automation, manifested in the auto sector’s increasing adoption of visual sensors and smart battery sensors. The auto industry is also expected to generate strong growth in the use of lithium batteries.
In renewables, the industry is counting on growth from smart inverters and high-density storage batteries.
SEIPI is projecting annual investment in the sector to rise to $1.5 billion by 2020; $3 billion by 2025; and $5 billion by 2030. By 2020, the industry is also expected to employ a total of 5.5 million directly and indirectly, up from estimated current levels of 3.2 million.
Electronics exports in 2017 rose 11% to $32.7 billion.

PSE’s terms for PDS sale keep changing, Finance dep’t complains

THE GOVERNMENT said the Philippine Stock Exchange (PSE) is imposing constantly changing conditions for signing the agreement to sell its 20% stake in the Philippine Dealing System (PDS), a fixed-income exchange, thereby slowing the deal’s completion.
Finance Secretary Carlos G. Dominguez III said that Land Bank of the Philippines (LANDBANK) reported to him that the PSE has expressed its intent to sell its stake in the Philippine Dealing System Holdings Corp. (PDSHC), but has asked to include the Bankers Association of the Philippines (BAP) in the share purchase agreement.
“They keep on changing. They were supposed to sign, now PSE wants to sign together with BAP,” Mr. Dominguez told reporters late Wednesday at the Finance department headquarters.
“So why are you putting so many conditions when in fact, it’s just a goddamn share purchase agreement. Why are you saying now that we will sign with those other guys?” he said.
Mr. Dominguez, who is ex-officio chairman of LANDBANK, said only the PSE, not the BAP, signed the non-disclosure agreement (NDA) with LANDBANK in connection with the negotiations for the sale.
“I said I want an NDA with all shareholders. If you don’t want to sell, I will not give you an NDA, what for? I have absolutely no idea what they are doing,” added Mr. Dominguez.
“So why should I expose myself like that? Why don’t I just deal with him, why do you have to get involved? I’m really at a loss… this is just a simple share (transaction). Now I understand why it took them five years to get this thing going,” he said.
The reason for PSE’s condition is still unclear, and it has yet to respond to queries at deadline time.
However, Mr. Dominguez said that he is “willing” to undertake separate negotiations with the BAP, but wants to proceed with the purchase of PSE’s 20% stake as quickly as possible.
He said that the BAP itself only has a 0.66% share in the PDS, not counting the stakes held by its member-banks.
“Only 0.66%, it’s nothing. I’m not going to sign for 0.66%… why are you putting these conditions? We can buy BAP’s shares but… you’re going to hold me up for 0.66%? Come on,” he said.
“Why so complicated? And it’s simple, do you want to sell or not? That’s the only question, don’t give me other conditions,” Mr. Dominguez said.
He noted that the offer, so far, remains at P360 per share.
However, he said that he as no target date to have the share sale agreement signed. “It’s useless because when you reach (the point of signing), they say no we want this condition. They cannot seem to get their act together.”
The government wants to take at least a majority stake in the fixed-income bourse through LANDBANK, after PSE failed to proceed with its merger with the PDS, in a bid to expedite the development of the capital markets.
The PSE failed to secure exemptive relief from the Securities and Exchange Commission on the 20% single-industry ownership limit, after failing to dilute broker ownership in the equities exchange to less than 20% — event as it had already secured about 69.03% of PDS in various share sale agreements that lapsed in end-March.
LANDBANK President and Chief Executive Officer Alex V. Buenaventura said earlier that other PDS shareholders may be gauging PSE’s moves before they also agree to the government’s offer. — Elijah Joseph C. Tubayan

No legal basis for foreign ownership cap in contracting industry, gov’t think tank says

THE LIMITS on foreign participation in the contracting industry have no legal basis, according to state think tank Philippine Institute for Development Studies (PIDS).
The imposition of foreign ownership limitations for contractors failed to follow established legal practice, PIDS said in a policy note authored by Lai-Lynn A.B. Barcenas.
She was referring to the implementing rules and regulations (IRR) of Republic Act 4566, or the Contractors’ License Law, as well as Board Resolution No. 605 issued by the Philippine Contractors Accreditation Board (PCAB) in 2011.
The IRR imposes a cap on foreign ownership of 30% while the resolution prescribes 40%. PIDS said these limits are “hampering the entry of potentially efficient players in the Philippine market.”
Ms. Barcenas described that the provision limiting the issuance of regular contractor licenses for foreign participation as “unjustifiable” and “problematic,” as it was not mandated in the original law.
“There is no statutory basis for any regulatory issuance to limit foreign ownership in these businesses, pursuant to the rule on subordinate legislation,” she said.
“Clearly, the IRR of RA 4566 and the PCAB Board Resolution No. 605-2011 were issued beyond the authority granted by law and the Constitution to PCAB. This amounts to administrative legislation, which is unconstitutional and invalid,” she added.
Had these administrative issuances not been issued, the contractors’ industry would only be subject to the general provisions of the Foreign Investments Act which allows full foreign ownership in the contracting industry.
“As long as the 60-40 ownership requirement remains in the regulations despite the absence of justification under existing laws, it creates an environment of unpredictability in the interpretation of Philippine laws,” PIDS said.
Ms. Barcenas urged government to revisit the administrative measures as it is currently reviewing the upcoming 11th Regular Foreign Investment Negative List (FINL).
The National Economic and Development Authority said earlier that the negative list would be liberalized “as aggressively as possible,” but would not solely depend on administrative reforms, with legal amendments being contemplated.
The 11th FINL is currently under legal review under the Office of the Executive Secretary before it is endorsed to President Rodrigo R. Duterte for final signature.
Mr. Duterte has ordered government agencies to “exert utmost efforts” in easing or lifting foreign restrictions on various industries in a bid to increase incoming investment, after the 10th FINL was left generally unchanged from the previous one.
Sectors included in Mr. Duterte’s order include: private recruitment, whether for local or foreign employment; the practice of particular professions, where allowing foreign participation will redound to the public benefit; contracts for the construction and repair of domestically funded public works; public services, except activities and systems that are recognized as public utilities such as transmission and distribution of electricity, water pipeline distribution systems, and sewerage pipeline systems; culture, production, milling, processing, and trading except retailing, of rice and corn and acquiring by barter, purchase, or otherwise, rice and corn and the by-products thereof; teaching at higher education levels; retail trade enterprises; and domestic market enterprises. — Elijah Joseph C. Tubayan

DICT orders NTC to review fees for mobile spectrum held by Globe, Smart

THE Department of Information and Communications Technology (DICT) has ordered the National Telecommunications Commission (NTC) to review spectrum user fees for specific frequency bands to determine whether the rights holders are making efficient use of them.
In a June 13 order, the DICT ordered the NTC to “review and make appropriate adjustments” to the spectrum user fees for the 610-790 megahertz (MHz), 790-960 MHz, and 1710-2025 MHz International Mobile Telecommunications (IMT) bands.
“…Due to the rapid growth of [third generation] 3G and [fourth generation] 4G mobile as well as the global trend towards 5G, it has become necessary for the DICT to encourage and promote the use of currently allocated frequencies such that spectrum user fees shall be applied uniformly and without discrimination to all users under the same classification or category,” according to the order, signed by acting Secretary Eliseo M. Rio, Jr.
Mr. Rio said that the NTC will have to determine if the spectrum is being used efficiently by the holders, which he identified as PLDT, Inc.,’s Smart Communications, Inc, Globe Telecom, Inc. and others.
“If they determine that they are not being used efficiently, they will have to increase spectrum user fees,” Mr. Rio said in a phone interview.
Mr. Rio said these were mostly awarded during the 1990s, and the fees will need updating at any rate.
He said that the fees range from about P5 million, while 3G fees are about P50 million. He said that the NTC will have to determine the appropriate increase.
“But if the NTC determines that these are being used efficiently, then maybe they will not increase,” he said.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo

MRTC: Sumitomo made valid MRT-3 rehab proposal

THE Metro Rail Transit Corp. (MRTC) asserted that it has a valid proposal to rehabilitate the Metro Rail Transit Line 3 (MRT-3) from Sumitomo Corp., after the Transportation department cast doubt on the proposal.
“Our proposal was actually made by Sumitomo as our contractor. I still maintain that the MRTC proposal with Sumitomo is the most beneficial, most cost-effective and the proposal that can be implemented fastest for the immediate convenience and safety of the riding public,” MRTC Chairman Robert John L. Sobrepeña said in a statement on Thursday.
MRTC said it wants Sumitomo Corp. to rehabilitate and maintain the train system, as indicated in its rejected proposal to the Department of Transportation (DoTr).
“Sumitomo is the right company to rehabilitate and maintain the MRT. They built the train and maintained it for 12 years. They have the correct expertise,” Mr. Sobrepeña added.
The DoTr said on Wednesday that the MRTC proposal to rehabilitate the MRT-3 is not an offer from Sumitomo Corp., and that the proposal “does not appear to have been prepared by any railway expert.”
It added, the MRTC submission is only a five-page proposal and a series of one- to three-page letters.
“Mr. Sobrepeña’s and MRTC’s proposal does not appear to have been based on any system inspection of MRT-3. It is a mystery how a proposal to rehabilitate a complex railway system could have been developed without a comprehensive system inspection,” DoTr said.
The department also said that the Japanese government remains the source of funding for the rehabilitation project, through the Japan International Cooperation Agency (JICA). After a two-month review of the train system, it said in May that the rehabilitation will cost P16.985 billion and will take 43 months.
Last year, Metro Pacific Investments Corp. (MPIC) and Ayala Corp. proposed to the DoTr to rehabilitate and take over operation of MRT-3.
As an unsolicited proposal, it must first secure original proponent status from the agency in charge, and then seek the approval of the National Economic and Development Authority (NEDA) board. It will then be subject to a Swiss challenge where other companies may submit their counter-proposals, which the original proponent may match.
Last week, Transportation Secretary Arthur P. Tugade said the department may decide by the end of the year on the OPS for the MRT-3 project.
Transportation Undersectary for Railways Timothy John R. Batan recently said the consortium is currently aligning the terms of its proposal to the scope of the JICA rehabilitation to avoid “two different people doing the same things.” — Denise A. Valdez

Dependence Day

With no sense of irony, it seems, did the United States “grant” Philippine independence on the same date as its own independence day, nearly half a century after Emilio Aguinaldo proclaimed independence in Kawit, Cavite on June 12, 1898, and the First Republic was established in Malolos, Bulacan on Jan. 23, 1899.
A succession of administrations from 1946 onwards saw nothing wrong with the presumption in the US’ July 4 “grant” that independence is a gift from the American government rather than a reality that had already been won from Spain through the sacrifices of an entire generation of patriots when the US occupied the country at the turn of the 20th century.
It took four Presidents — Manuel Roxas, Elpidio Quirino, Ramon Magsaysay, and Carlos P. Garcia — before the Philippine government, through then President Diosdado Macapagal, corrected that travesty by declaring June 12th as the country’s true Independence Day.
Despite that significant change, no other Philippine President, with the exception of Garcia, whose promise to adopt a “Filipino First” policy earned him the threat of a coup d’etat, ever saw the need to depart from Roxas’ pledge in 1946 to follow in the “glistening wake of America” and to “place our trust in (its) good intentions.”
It was during Quirino’s term that the 1951 Mutual Defense Treaty between the US and the Philippines was signed.
But the unpopular Quirino didn’t quite suit US interests, particularly its need to keep the country in its orbit by, among other means, defeating the Huk rebellion. Thus its support for the presidential ambitions of the pliable Magsaysay, during whose watch the Huks were indeed crushed with CIA help, and the web of military and other engagements he entered into with the US bound the Philippines even closer to its former colonizer.
After Macapagal, Ferdinand Marcos sent the Philippine Civic Action Group (Philcag) to Vietnam in support of the US war of aggression there, and cleared with the US his declaration of martial law in 1972. Among his justifications for one-man rule was that it would enable him to reverse the decisions of the Supreme Court that tended to foster economic nationalism.
Corazon Aquino was confident that she would get US support when she ran against Marcos in 1986, and depended on her US links to help keep her in power.
It was during the term of Fidel Ramos, Aquino’s successor, that the first Philippine-US Visiting Forces Agreement (VFA) was signed, and a law passed further liberalizing the climate for foreign investments.
Supposedly a nationalist, Joseph Estrada’s watch was short-lived, but was significantly characterized by the signing of the second Visiting Forces Agreement, and the passage of a law providing more incentives to multinational firms.
Estrada’s successor Gloria Macapagal-Arroyo repeatedly visited the US, pledged unconditional Philippine support for any and all US responses to the Sept. 11, 2001 terrorist attacks, and signed the Mutual Logistics Support Agreement (MLSA) that even further strengthened the Visiting Forces Agreement. The VFA provisions contrary to Philippine interests demanded renegotiation, but Arroyo yielded to US pressure to keep the Agreement as it was — and as it still is.
During the term of Benigno S. C. Aquino, III, the Enhanced Defense Cooperation Agreement (EDCA) was signed, which further expanded US troop access to Philippine military bases. His administration also solicited US help in putting a halt to Chinese incursions in the West Philippine Sea.
What all of these demonstrate is how the dynasties that have been in control of the Philippine government since 1946 have been, and still are, dependent on, and beholden to, US approval, patronage, and support.
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Rodrigo Duterte seemed determined to chart a new course.
He recalled the cost in Filipino lives and the brutality of US intervention in the Philippines, and pledged to pursue an independent foreign policy, which can only mean departing from every administration’s policies supportive of US economic and military interests no matter the damage to the Philippines’ own.
He also promised to put an end to the Balikatan (shoulder to shoulder) war games by the end of 2016, declared that the country would no longer participate in US military exercises and that it has “separated” from its imperial patron, and harshly criticized the US human rights record during the Philippine-American War and the US occupation of the Philippines.
These promises have been exactly that — promises.
Mr. Duterte’s control over both Houses of Congress could have enabled him to amend or outrightly abrogate the multitude of treaties and agreements that bind the Philippines to the US. But the 1951 Mutual Defense Treaty is still in force, and so is the VFA, the MLSA, and EDCA.
In violation of the Constitutional ban on foreign military bases, the US now has access to at least five Philippine military bases all over the archipelago, and is constructing storage and personnel facilities in which to house its troops and their equipment.
Despite Mr. Duterte’s description of the September 2016 war games as “the last,” the US-Philippine Balikatan war games were still held last May in affirmation of the regime’s continuing commitment to preserving US influence in the training and indoctrination of the Philippine military.
Of equal significance is the Duterte regime’s focus on amending the Constitution not only to weaken its Bill of Rights provisions but also to remove from it the prohibitions on foreign ownership of land, public utilities, and mass media as well as to provide even more incentives to foreign companies.
As if the country’s continuing to be a US dependency were not bad enough, Mr. Duterte has further compromised and damaged Philippine sovereignty by surrendering to Chinese military and economic interests.
Not only has he turned a blind eye to Chinese militarization of the area and even its forces’ harassment of fisher folk in the Philippines’ Exclusive Economic Zone.
He has also encouraged the further enhancement of the dependency mindset so rampant among many Filipinos by declaring that the Philippines, rather than relying on its own resources, needs China’s support, and that it will protect the country. He has at the same time opened the country to Chinese corporations, allowed the entry of over a hundred thousand Chinese businessmen and gaming company staff, and in at least one instance, welcomed a Chinese warplane’s refueling in Davao City.
Chinese interests are deeply involved in the “rehabilitation” of Boracay, where tourists have been barred for six months in apparent preparation for turning that island into a gambling resort controlled by a Macau-based company. Chinese contractors including two blacklisted by the World Bank for corruption are also part of the multibillion reconstruction of Marawi City, which the regime bombed into rubble last year.
Instead of a country firmly committed to an independent foreign policy, the defense of its sovereignty, and the pursuit of true independence, what the Philippines is turning into during the two years since Mr. Duterte came to power is a client state that’s even more dependent on the imperialist powers, and in mortal danger of being the doormat not only of one foreign overlord, but of two.
June 12 should remind the Filipino people of those aspirations for social change and authentic independence that drove the Philippine Revolution and that have been at the heart of their shared history and common purpose for over a hundred years.
But the realization of those aspirations — the transformation of Philippine independence from illusion to reality and the making of a just and prosperous society — will never happen as long as the country is ruled by the descendants of the principalia that collaborated with Spanish colonial rule, and whom the US trained for “self government” during its formal occupation of the Philippines to assure the country’s transformation into a neo-colony once its “independence” is “granted.”
 
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

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