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All-Star Game tweak

As a long-time fan of the National Basketball Association (NBA), the mid-season classic All-Star Game has always been a highlight of every NBA year for me.

While admittedly there were editions that rendered themselves as lopsided, still the thrill of seeing 24 of the best players in the world on the same court was not lost on me and took delight from them nonetheless.

This year, the Association had decided to make a tweak on how the All-Star Game (ASG) will be presented.

It had done away with the traditional East versus West format and instead will have two teams composed of players regardless of the conference they play in and selected, playground-style, by the top two vote-getters from the NBA’s two conferences.

The reason primarily for the change in format, league officials said, is to make the game more exciting and competitive.

To be honest, initially I did not really see the need for the tweak, because, as I said at the top, I am into the ASG regardless. It is the best from the East against those from the West, and I am fine with it.

But having the chance to follow how the NBA came up with the roster for the All-Star Game and how the selection panned out, I am going to say it made me excited more than I expected and actually is looking forward to it all the more.

As things stand, the teams have been divided between Team LeBron James and Team Stephen Curry, the players who got the most votes from both conferences.

The two captains selected their players last Friday with very interesting mixes. It is just unfortunate that the process was not televised for one could only imagine the dynamics and “drama” that went in the selection — something we fans could have gotten a kick from.

When the selection smoke cleared, Team LeBron wound up with Kevin Durant (Golden State), Anthony Davis and DeMarcus Cousins (New Orleans) and Kyrie Irving (Boston) as the starters with Russell Westbrook (Oklahoma City), John Wall and Bradley Beal (Washington), Kristaps Porzingis (New York), Victor Oladipo (Indiana), LaMarcus Aldridge (San Antonio) and Kevin Love (Cleveland) coming off the bench.

The team will be coached by Toronto’s Dwane Casey. Because of the season-ending Achilles injury he suffered recently, Cousins will miss the All-Star Game and has since been replaced by Paul George of the Oklahoma City Thunder.

Team Stephen, meanwhile, has as part of the starters James Harden (Houston), DeMar DeRozan (Toronto), Giannis Antetokounmpo (Milwaukee) and Joel Embiid (Philadelphia). Reserves are Klay Thompson and Draymond Green (Golden State), Kyle Lowry (Toronto), Al Horford (Boston), Damian Lillard (Portland) and Jimmy Butler and Karl-Anthony Towns (Minnesota).

Its coach is Mike D’Antoni of the Houston Rockets.

On paper, it is easy to side with Team LeBron for it is loaded as loaded can get. James said he wanted a team that is competitive and I think he got it and more.

At every position it has it covered and can be a handful.

On the other end, Team Stephen maybe surrendering some talent here and there but mind you in a team setting and play it could have the advantage.

Made up mostly of teammates in their mother teams and players who have no trouble “complementing,” the team may render itself more fluid come game time.

With what is at hand in the All-Star Game on Feb. 19 (Manila time), an exciting and competitive match between the protagonists should be expected.

Aimed at attracting fans and stoking their interest, the latest NBA All-Star Game tweak does give a fresh dimension to it all, and count me in as among those watching it.

 

Michael Angelo S. Murillo has been a columnist since 2003. He is a BusinessWorld reporter covering the Sports beat.

msmurillo@www.bworldonline.com

Mitsubishi starts accepting orders for new Xpander MPV

MITSUBISHI Motors Philippines Corp. (MMPC) announced it has started accepting reservations for the new Mitsubishi Xpander MPV, a model that made its global debut in Jakarta, Indonesia, in August 2017. The Xpander, built at a new Mitsubishi factory in West Java, Indonesia, has since turned into a “game-changer” in that country, according to MMPC.

The company said it would be taking reservations until the end of April this year, indicating the new model will arrive in showrooms starting in May.

Four variants of the Xpander will be introduced: GLX M/T, GLX Plus A/T, GLS A/T and GLS Sport A/T. Prices are set — MMPC referred to these as “indicative” — at P900,000 for GLX M/T; P990,000 GLX Plus A/T; P1.050 million for the GLS A/T; and P1.1 million for GLS Sport A/T. Colors available are Red Metallic, Titanium Gray Metallic, Sterling Silver Metallic, Quartz White Pearl and Diamond Black Mica, depending on which variant is chosen.

MMPC said the Philippines is the second country to get the Xpander, which is also expected to land in Thailand, Vietnam, Sri Lanka, Bolivia and Egypt. In a presentation held on the sidelines of the Tokyo Motor Show in October 2017, Mitsubishi Motors Corp. officials said total annual production of the Xpander for 2018 is pegged at 80,000 units, with Indonesia accounting for around 70% of the output. Forecast to take the next sizable chunk of deliveries is the Philippines, with an estimated 20% share. Thailand is seen as the Xpander’s third-biggest destination.

Mitsubishi Xpander 2
Mitsubishi offered the Xpander for test-drives at its proving ground in Nagoya during the sidelines of the 2017 Tokyo Motor Show. — BRIAN M. AFUANG

During the same presentation, Mitsubishi said the Xpander’s mix of MPV utility and SUV toughness and style is the key to the model’s commercial success. The company said the vehicle — configured in the Philippines to seat seven people — has the roomiest cabin in its class, and even out-sizes the cabin height of a competitor’s larger MPV because of a lower floor. This, Mitsubishi said, is the result of the Xpander’s monocoque structure that does not require its body to be mounted atop a ladder frame (unlike the larger truck-based MPV). A long wheelbase helps in stretching cabin space, too, although some Mitsubishi officials admitted the abovementioned MPV trumps the Xpander in cabin width (the Xpander remains widest among its ilk though, according to them).

The Xpander is powered by Mitsubishi’s MIVEC 1.5-liter, 103 hp gasoline engine that can be mated to a five-speed manual or a four-speed automatic transmission, either of which sends power to the front wheels. In Indonesia, the model is positioned to compete against the Daihatsu Xenia (sold as the Toyota Avanza in the Philippines) and the Honda Mobilio.

MMPC said other notable features of the Xpander include hill-start assist, active stability control, emergency stop signal, and a unique fascia that’s marked by Mitsubishi’s proprietary Dynamic Shield Concept styling.

To place their reservations, MMPC said customers can log on to www.xpander.mmpc.ph. A reservation fee of P10,000 is required, which must be paid in a Mitsubishi Motors dealership.

RLC opens office spaces in Ilocos Norte mall

ROBINSONS LAND Corp. (RLC) has opened new office spaces in the newly expanded Robinsons Place Ilocos Norte, looking to take advantage of the growing number of business process outsourcing (BPO) firms expanding into the provinces. 

In a statement issued Tuesday, the Gokongwei-led property developer said it has unveiled office spaces spanning a gross leasable area (GLA) of 7,829.24 square meters (sq.m.).

Accredited by the Philippine Economic Zone Authority (PEZA), the offices cover three out of four floors in Robinsons Place Ilocos in San Nicolas, Ilocos Norte.

“The site of Robinsons Place Ilocos makes it ideal for BPO offices since it is within close proximity to several universities — five minutes away from Laoag City and 20 minutes from the airport, and is easily accessible from the national highway,” RLC Office Buildings Division and General Manager Faraday D. Go was quoted as saying in a statement.

The company completed the expansion of Robinsons Place Ilocos in 2016, bringing its gross leasable area to 53,600 sq.m., against the previous 20,500 sq.m. RLC said this was the first premier lifestyle mall in Ilocos Norte. 

RLC also described San Nicolas as the center of business in the province, with the presence of local businesses in the retail, services, manufacturing, real estate leasing, printing and advertising, and distribution sectors. 

The Gokongwei-led property firm also has office spaces in Robinsons Luisita in Tarlac City, Robinsons Cybergate Cebu and Robinsons Galleria Cebu in Cebu City, Cybergate Delta in Davao City, and Cybergate Naga in Naga City. 

“BPO companies locate in the provinces to take advantage of less competition for talent, lower office rental rates, and lower cost of talent,” Mr. Go said. 

Property consultancy firms have been recommending that real estate developers build office developments outside Metro Manila, in a bid to decongest the metro and tap the talent pool in the provinces. The Oxford Business Group, for instance, cited Ilocos Norte as one of the up-and-coming areas outside Metro Manila in 2017 due to commercial and tourism growth. 

“The location can also serve as a back-up site for BCP (business continuity planning) and there is a significantly lower entry-level salary base as compared to Metro Manila. There are also sufficient telecommunications infrastructure in these provinces as well,” Mr. Go added. 

RLC’s net income attributable to the parent was flat at P4.56 billion in the first nine months of 2017, with revenues also almost the same as year-ago levels at P16.64 billion. 

The company will be conducting a P20-billion stock rights offering from Feb. 2 to 8, with each of the 1.1 billion common shares priced at P18.20. 

Shares in RLC were up 40 centavos or 1.94% to close at P21 apiece at the Philippine Stock Exchange. — Arra B. Francia

Muzzling the media

The shutdown of online media outfit, Rappler, reminds me of a sequence in the film, Walking Tall, the biopic about Tennessee Sheriff Buford Pusser. Stymied by an uncooperative judge, Pusser invoked a little-known provision in the city statutes, giving him authority to determine where to place the judge’s office. Pusser assigned the judge to the men’s room. Not surprisingly, the latter became very cooperative.

The lesson here is obvious: Don’t fight city hall. You can’t win — at least, that’s what conventional wisdom says.

In the case of Rappler — as well as other media organizations — the lesson is, don’t fight Malacañang. The Securities and Exchange Commission will get you — unless elements of the Philippine National Police knock on your door first (I understand tokhang is back).

The bleeding hearts protesting the use by the SEC of a “technicality” in shutting down Rappler’s operation may have forgotten the oft-used warning, “Those who throw stones should not live in technically vulnerable glass houses.”

The folks putting out Rappler probably knew from the outset that they were taking risks with their kind of investigative reporting. But they took their risks, nonetheless. Now, they must take their hits.

But while their Web site may have been ordered closed, that doesn’t mean it’s time for them to ride off into the sunset. Aside from recourse to the courts, they still have their best assets — themselves.

Unlike the hapless judge in the Walking Tall tale, committed and crusading journalists don’t need an office or the official sanction of government authorities to pursue their mission. They only need their head, heart and hand.

If Maria Ressa and her team haven’t lost their fighting spirit yet, they don’t need the SEC to give them the go-signal to proceed with their mission. In fact, they don’t need a Web site or investors.

They can continue writing their investigative pieces and posting their output on social media till Presidential spokesman Harry Roque turns blue in the face from calling their work fake news.

But that is where, with due respect, they should draw line.

Indeed, there is a thin line between sensationalism and objective but hard-hitting journalism. Without meaning to refer to Rappler, I have seen too many instances when ostensibly reputable media have crossed the line into sensationalism and even outright masturbation of the news.

While I sympathize with Ressa and the writers of Rappler, as well as with the media organizations that are loudly condemning the threat to press freedom, I think they should have watched the movie, Walking Tall, before they mounted their laudable but audacious venture. They were bound to be consigned to a virtual restroom, sooner or later, or be deposited in the trash bin.

Crusading journalists cannot expect any quarters from those whose lucrative lives they jeopardize.

According to a CNN report, the Philippines is one of the most hazardous countries for journalists, next only to Syria and Iraq, both of which happen to be war zones.

My nephew, Conrad de Quiros, used to tell me (when he was still actively writing his newspaper column, before he had a stroke) that Manila-based journalists were not usually the targets of hit squads, just members of the provincial press. Nonetheless, I advised him not to push his luck.

I’ve been told as much by relatives and friends who fear that I may be too critical of sensitive individuals who are in power. But that is an occupational hazard that one must be prepared to face — otherwise, flipping burgers would be a much safer trade.

During the repressive years of the Marcos dictatorship, the late Joe Burgos published the courageously anti-government paper, We Forum and Malaya. Only by the Grace of God was Burgos spared from being salvaged, although the same cannot be said about his son, Jonas.

Jonas Burgos, an activist, was reportedly abducted by the military and was never heard from.

That may say something about the unlamented Marcos government. It probably had the fear of God in some cases, such as that of Joe Burgos. Jonas Burgos disappeared during the tenure of President Gloria Macapagal-Arroyo.

Long before the advent of social media, the banner of the “mosquito press” (called thus for the relentlessness and fearlessness of their sting) was also held high by college publications, like the Philippine Collegian of the University of the Philippines.

Underground journalists also passed on mimeographed newsletters from hand to hand, to the consternation of the martial law censors. The Marcos-controlled TV and radio networks, as well as the broadsheets and tabloids in the Philippines and in the United States, were often scooped by the guerrilla media.

In the US, the late Alex Esclamado had to borrow from every available wallet in sight to keep his anti-Marcos Philippine News in print, having been deprived of advertising revenues by Malacañang fiat. In desperation, the Marcos minions offered Esclamado $12 million to sell his paper. He refused and fought on.

Alex Esclamado never missed a single issue of his weekly paper, although that left him very deep in debt. For his efforts, he was conferred the Philippine Legion of Honor by President Cory Aquino.

In Spain, in 1895, a hardy group of young Filipinos, Los Indios Bravos, published, La Solidaridad, a weekly newspaper, as the spearhead of the propaganda movement, dedicated to pushing for reforms by the Spanish colonial government in the Philippines. They risked the ire of the Spanish government but they proceeded, nonetheless. For their courage, their names have been enshrined in the pantheon of the nation’s heroes.

The first editor of the Soli, as it was referred to for short, was Graciano Lopez Jaena. He was subsequently replaced by Marcelo H. del Pilar. Unfortunately, the publication had to close down due to lack of funds.

Earlier, Jose P. Rizal pursued the crusade for reforms with his two novels, Mi Ultimo Adios and El Filibusterismo. Rizal published his books with borrowed funds.

Of course, we all know what happened to Rizal. Worse than what the SEC has done to Rappler. Much worse.

Let’s all pray that the Rappler team will only have to deal with the SEC and not with tokhang.

 

Greg B. Macabenta is an advertising and communications man shuttling between San Francisco and Manila and providing unique insights on issues from both perspectives.

gregmacabenta@hotmail.com

5,000 hectares of CARP land in Davao Region ‘problematic’

THE DEPARTMENT of Agrarian Reform-Davao Region office (DAR-11) said 5,000 hectares (ha) of land, which accounts for 50% of the remaining lots up for distribution under the Comprehensive Agrarian Reform Program (CARP), are “problematic,” DAR Regional Director Joseph H. Orilla told media that the problem mainly involves pending court cases arising from disputes raised by private land owners. “Majority of these areas are haciendas in Davao Oriental,” Mr. Orilla said, noting that several of the cases are pending before the Supreme Court. The 10,000 ha in Davao are part of the remaining 584,000 ha of land nationwide that have yet to be distributed to farmers. The distribution process has been taking so long, Mr. Orilla said, because “privately owned lands, like hacienda landowners, will have to be compensated by the government.” CARP, contained in Republic Act 6657, was passed in June 1988. — Maya M. Padillo

Time to make our driver’s license expensive

I don’t know about you, but I got my driver’s license fairly easily. No, I did not pay a fixer to expedite the process, but the whole examination that was supposed to determine whether I knew how to drive or not was a complete travesty of our motoring regulations.

First of all, the written test consisted of trivia questions that were far more suited to a TV game show than a reliable screening system that would expose unqualified license applicants and prevent them from becoming risks to road safety. I have no idea if there was any sound logic or well-grounded psychology to that test.

And then there was no practical exam at all. They simply asked me if I could drive, and I (of course) said yes. They took my word for it and gave me that precious plastic card — without bothering to check if I even knew where the turn-signal stalk was.

And that’s only the story for those who “legitimately” go through the process. Imagine the many more who forgo the formalities altogether and just grease an insider’s palm. They who believe driving is easy because they see a motoring jungle like Metro Manila and think it can’t possibly require formal driving skills — not realizing that the very reason our roads are chaotic is that motorists don’t submit themselves to proper training.

Little wonder we don’t respect our driver’s license. It has no value whatsoever. It’s a joke. In fact, you can get a real-looking fake one in Quiapo for P500, the argument of those who buy them being: “They’re one and the same, a card you can acquire for practically nothing.”

Thankfully, we could see all of this farce coming to a long-overdue end. As you read this, the Land Transportation Office (LTO) has just wrapped up its first initial meetings with a group of reputable driving schools in the country. The agency is quickly moving to follow the mandate of Republic Act 10930, otherwise known as “An Act Rationalizing and Strengthening the Policy Regarding Driver’s License.” Issued in July 2016, this is the decree that extended the validity of our driver’s license from three to five years.

Now that our license is good for half a decade, the government wants applicants to earn it and not just pay for it. In its ongoing consultations with the driving schools, the LTO wants applicants to take a mandatory training course to be administered by an accredited driving school. Which means the agency will no longer conduct the useless test. Instead, professional driving schools will be tasked to train and then evaluate the license applicants, hopefully eliminating fixers and answer keys. There will be specific modules designed for different vehicles: basic, motorcycle, light and heavy.

The proposed course includes 15 hours of lecture complemented by 15 hours of hands-on training. According to my source who’s familiar with the discussions, license applicants will be made to pick from a list of LTO-accredited driving schools and undergo their training there. All driving schools in the Philippines may apply for accreditation if they wish to be included in the program.

The tricky part here — as is always the case in this budget-conscious republic — is the fixed fee to be paid to the driving schools. Since the parties involved are still discussing the details of the program, nothing is final yet. But one suggestion being thrown around is to charge applicants P500 per hour of training, which would make the whole course worth at least P7,500. For average Filipinos, that amount isn’t cheap — almost like applying for a US visa.

I can already see the rants on social media if this gets approved: “prohibitive,” “corrupt,” “anti-poor,” “elitist,” “onerous.”

But then, the privilege of driving should have always been costly to begin with. It’s the only way we will cherish it dearly. Price it high and threaten to take it away if a driver accumulates a certain number of demerits. Let’s see if everyone doesn’t drive far more responsibly. Our driver’s license is so affordable Maria Isabel Lopez couldn’t care less if she lost it.

One way of making the driving school fee more acceptable is to make applicants see the benefits of the training course. Let’s tell them, for instance, that P7,500 is nothing compared to the damages they will avoid in the future if they’re better equipped to handle a steering wheel, or even relative to the traffic violation fines they will dodge if they’re properly educated.

I’m not lobbying on behalf of the LTO or the driving schools. The fee isn’t even final yet. Everything is still in the negotiation stage. All I’m saying is that the driver’s license should come with a hefty price tag. Let’s not give it away. Those who receive it could either safely rush a patient to the hospital or recklessly send another person to the grave. It’s a daunting task and so should cost a lot.

Time to take our motoring licensure seriously. Enough of the Mickey Mouse test.

Tillerson to rally Americas, amid Venezuela crisis

WASHINGTON — US Secretary of State Rex W. Tillerson is to embark on his first major tour of Central and South America this week as a worried region watches Venezuela’s slide into crisis.

On Thursday, Washington’s top envoy will lay out his vision for relations with the United States’ southern neighbors in a speech in Texas before jetting on a five-nation voyage.

The political and economic turmoil in Venezuela will top the agenda as Mr. Tillerson rallies support for Washington’s tough stance against President Nicolas Maduro’s regime.

But Mr. Tillerson will also tackle crime and immigration in US neighbor Mexico, after President Donald J. Trump threatened to tear up a North American trade pact and build a border wall.

And, in his talks with senior officials, he will help prepare four major diplomatic events, starting with April’s Summit of the Americas in Peru and June’s G7 meet in Canada.

Then, later this year on Nov. 30 to Dec. 1, Latin America will for the first time host the G20 Leaders’ Summit of the world’s great powers in Buenos Aires, Argentina.

“We’re going to have a year of high profile events,” a senior State Department official told Washington reporters at a background briefing on the trip ahead.

“The secretary’s speech will, I think, set the stage for all of that,” he said, explaining Mr. Tillerson’s stop over at the University of Austin, in Texas on his southward leg.

In addition to the international timetable, several major Latin American economies hold elections this year, including Venezuela, which plans to vote before the end of April.

Washington has vowed not to recognize the result of that vote, which it says was set up in violation of Venezuela’s own constitution simply to entrench Mr. Maduro’s beleaguered regime.

Less controversially, but still critically for the democratic health of the continent, other players will also go the polls.

Mexico votes in July, perhaps delaying high-wire negotiations between Washington and President Peña Nieto’s government to save the NAFTA trade deal and fight organized crimes.

There will also be a Colombian election in May and a Brazilian election in October.

Venezuela will be top of the agenda at each of the stops: Mexico, Argentina, Peru, Colombia and then a few hours in Jamaica on the homeward leg.

All the stops but Jamaica are members of the Lima Group set up to coordinate a joint Americas response to the Venezuela crisis, and Jamaica has joined meetings and played a role.

The Lima Group has urged Mr. Maduro’s government to carry out democratic reforms, release political prisoners and allow foreign organizations to supply aid to Venezuelans.

Regional heavyweights Brazil and Argentina have been reluctant to follow Washington’s lead and impose sanctions on Mr. Maduro’s regime, fearing poor Venezuelans will suffer most.

But they agree with the political message, and Argentina’s President Mauricio Macri confirmed to AFP on Saturday that his government would not recognize Venezuela’s upcoming election.

Venezuela — hit by low oil prices, corruption and instability — is enduring one of the worst crises in its history under Mr. Maduro, late leader Hugo Chavez’ hand-picked successor.

Inflation for this year is forecast to hit 13,000%, and from April to July last year angry Venezuelans clashed with security forces in the street, leaving 125 dead.

Mr. Tillerson will be in Texas for his speech on Thursday, Feb. 1 before flying to Mexico City for two days of talks, including with Mr. Nieto and Foreign Minister Luis Videgaray.

On Saturday he arrives in Argentina’s Andes’ resort of Bariloche, and on Sunday he heads on to Buenos Aires, for talks with senior officials.

As he turns back and heads north, he has talks in Lima, Peru on Monday and Tuesday, when he also arrives later in Bogota, Colombia before flying home via Kingston on Wednesday. — AFP

Stocks decline to track sell-off in other markets

By Arra B. Francia, Reporter

STOCKS bled on Tuesday, tracking the sell-off seen in other regional markets after hitting consecutive record highs in previous weeks.

The 30-company Philippine Stock Exchange index (PSEi) dropped 1.63% or 148.14 points to settle at 8,910.48 yesterday, while the broader all-shares index lost 1.48% or 78.36 points to 5,194.64.

“I believe this is a correction, after we have been up from the start of the year within a span of less than a month. And the one that triggered this was the global market which was down today,” Diversified Securities, Inc. equity trader Aniceto K. Pangan said in a phone interview on Tuesday.

International markets were mostly down on Monday, with the Dow Jones Industrial Average shedding 0.67% or 177.23 points to 26,439.48. The Nasdaq Composite Index was down 0.52% or 39.27 points to 7,466.50, while the S&P 500 index dipped 0.67% or 19.34 points to 2,853.53.

Southeast Asian stock markets fell on Tuesday tracking Wall Street.

“Asian markets are tracking US equity markets, which finished broadly lower with tech and energy stocks accounting for much of the decline,” said Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore.

The dollar traded above a recent three-year low against a basket of major currencies on Tuesday, having drawn some support from a rise in US bond yields as traders awaited a Federal Reserve policy meeting for fresh catalysts.   

BDO Capital and Investment Corp. President Eduardo V. Francisco also said the market’s decline was due to profit taking.

“There was just profit taking but fundamentals remain unchanged,” Mr. Francisco said.

Diversified Securities’ Mr. Pangan noted that yields in the United States had hit an all-time high on Monday at 2.7%, prompting investors to take profits.

“With the increase in rates, definitely this will reduce liquidity in the system…with that, it gave a signal to the investors to take profits,” he said.

All sectoral indices shed points on Tuesday. Holding firms slipped 1.85% or 173.18 points to 9,189.77; property was down 1.85% or 76.09 points to 4,028.38; mining and oil gave up 1.81% or 222.53 points to 12,011.52; services moved down 1.7% or 29.62 points to 1,706.68; industrials dropped 1.39% or 167.50 points to 11,849.03; while financials closed lower by 0.62% or 14.12 points to 2,244.03.

The market was valued at P10.05 billion yesterday after some 2.39 billion issues switched hands, higher than Monday’s P8.87 billion.

Decliners outpaced advancers, 151 to 58, as 55 issues remained unchanged.

Net foreign outflows widened to P2.02 billion on Tuesday from the P86.04 million recorded on Monday.

Mr. Pangan said the market could fall to as low as the 8,800 mark this week as it continues to correct. — with Reuters

Calata says SEC has no jurisdiction over ICO

DESPITE a cease-and-desist order (CDO) issued by the Securities and Exchange Commission (SEC) on his company’s initial coin offering (ICO), businessman Joseph H. Calata insisted this does not prohibit online agribusiness venture Krops from selling digital coins to foreign investors.

In a letter addressed to participants of the ICO, Mr. Calata said it will stop the sale of tokens to Filipinos as per the SEC’s orders, but will continue with the offering for prospective foreign buyers.

“To be clear, we understand that the CDO was just an order to stop the selling of KropCoins only to Filipino nationals. The Philippine SEC cannot prohibit selling to other nationalities because this is not under their jurisdiction. The CDO is also not to stop the operation of the Krops application which serves as the daily virtual agricultural market place of all buyers and sellers of agricultural products,” he said.

Mr. Calata insisted the Philippine SEC has no jurisdiction over Krops’ ICO, “simply because this is a global offering and not a public offering limited to the Philippines.”

The company’s coin offering continues to be held online, with a total of 4.81 million tokens already sold out of the 6.4 million pre-sale tokens as of Jan. 30. The tokens are being sold in exchange for the digital currency called etherium, at a price of 0.0015 ETH apiece.

While Krops will no longer be selling tokens to Filipinos, Mr. Calata clarified that those sold prior to SEC’s CDO will remain a part of the ICO.

The SEC last Jan. 26 had stopped the ICO of Krops, involving three other Calata-led firms: Black Cell Technology, Inc., Black Sands Capital, Inc., and Black Cell Technology, Inc. The country’s corporate regulator said that the companies failed to register the securities being offered in the ICO, making the issuance illegal.

Krops describes itself as an online marketplace for agricultural products with an inventory of P15 billion, making it the “biggest farm in the Philippines and most diverse without owning a single farm.”

Mr. Calata noted that given the absence of regulations pertaining to ICOs, Black Cell Technology sought the SEC’s audience through a letter dated Jan. 18 to iron out regulatory concerns regarding the offering.

“The letter which clearly had the intention of productively threshing out any issues with SEC was simply ignored. It is quite puzzling why the SEC was very arrogantly dismissive, to say the least,” according to Mr. Calata.

The businessman said they are now seeking another dialogue with the SEC to clarify matters regarding the ICO. For one, Mr. Calata said that the SEC has the “erroneous impression and belief that the KropCoin ICO is somehow related to Calata or CalCoins.”

To recall, CalCoins were Mr. Calata’s proposed alternative to shareholders of now delisted agribusiness firm Calata Corp. Mr. Calata, who served as the company’s chairman, gave shareholders the option to exchange their shares for digital tokens that can then be traded in international cryptocurrency exchanges.

With these assumptions, Mr. Calata claimed that the SEC’s CDO has been “nothing but a harassment against me.”

Following the CDO against Calata’s businesses, the SEC said it will be investigating other companies that have launched ICOs in the past without their knowledge. The commission will also be releasing guidelines for ICOs within the year. — Arra B. Francia

Art & Culture (01/31/18)

Arts Management lecture

PROF. Sun Man Tseng will be giving a lecture called “Why Artists Should Bother with Arts Management” on Monday, Feb. 5, 10 a.m. to noon, at the 6F Blackbox, School of Design and Arts, De La Salle — College of Saint Benilde, 950. P. Ocampo Street, Manila. For inquiries or reservations, e-mail evangeline.binarao@benilde.edu.ph, jazmin.tugas@benilde.edu.ph or rachiel.villarosa@benilde.edu.ph.

Concert, exhibit for a cause

ON Feb. 3, 5:30 p.m., the Center for Possibilities Foundation, Inc., will open a one-man exhibit called Not About the Dog, featuring a series of paintings by 17-year-old painter, Juno Santos, a child with special needs. This will open for a special benefit concert Love & Luck: Bach Vs Beatles, a fund-raising effort for the many endeavors of the Center for Possibilities, an organization dedicated to uplifting the lives of children with special needs, most especially those from the poorest families, who live in far-flung rural areas. The Center currently operates a Special Education (SPED) facility in Sagada, Mountain Province. The concert will feature the Manila Symphony Orchestra under the baton of Arturo Molina. It will be held at the Carlos P. Romulo Auditorium, RCBC Plaza, Ayala Ave., Makati City. For details, contact Marica Diokno at 0918-888-1759 or 723-1242.

Salvatus at 1335Mabini

1335MABINI presents Mark Salvatus’ solo exhibition Mark Salvatus: Salvage Projects. For the current solo show, Salvatus will look both back and forward to continue the project he started back in 2006: Salvage Projects. The exhibit runs until Feb. 10. Meanwhile, final installment of MABINI Projects’ one-year long exhibition series Cumulus Blimp: A Transnational Platform of Discourse features works by New York-based Federico Solmi and Manila-based Dexter Sy. Solmi creates installations of different media, such as video, drawings, mechanical sculptures and paintings, and uses bright colors, satirical aesthetics and absurd narratives to portray a dystopian vision of our present-day society. Sy creates carefully arranged paintings which emphasizes cultural patchwork. Mabini Projects is at Casa Tesoro, Mabini Ave. Ermita, Manila while 1335Mabini is at 1335 Mabini Ave., Ermita, Manila.

Pobadora at Altro Mondo

A LITTLE SLOWER by Nile Pobadora, acrylic on paper, 2016

ALTRO MONDO Arte Cotemporanea presents Murmur of the wind, a solo exhibit by Nile Pobadora at Altro Mondo at The Picasso (Picasso Boutique Servied Residences, 119 L.P. Leviste St., Salcedo Village, Makati. Pobadora does acrylic paintings on paper which explor the realms of the subconscious and man’s perceived realities. The exhibit runs until March 18.

Group shows at Blanc

ENTITLED by Vladimir Grutas, wood, plywood and carpet, 2018

INTENSION: Capturing Tension and Making It Visible at Blanc features the latest works of artists Arturo Sanchez, Jr., Isidro “Manong Jon” Santos, Michael de Guzman, Siefred Guilaran, Hamilton Sulit, Gretel Balajadia, Severino Baring III, Mark Francisco, Leonardo Oria Jr. and Lyndon Maglalang. Three things are common in Intension works and the participating artists. One, the works are done by Angono and KUTA artists belonging to the third generation of painters in Angono, the Art Capital of the Philippines. Two, most of them were participants in the historic Cultural Center of the Philippines exhibit in 2016 which highlighted the contemporary and modern art-making process in this town. And three, the younger participating artists have looked upon the elders as their teacher in a mentor-apprentice relationship. Also on view is We Do Everything We Can to Avoid Trying, organized by Allan Balisi and featuring the works of Rolf Campos, Gab Ferrer, Vladimir Grutas, and Bryan Pollero. Blanc is at 145 Katipunan Ave., St. Ignatius Village, Quezon City. For details, visit www.blanc.ph.

Cristobal at Gateway

Gateway Gallery presents Vestigium, Scriptorium, the fourth solo exhibit of Geronimo Cristobal. The artist presents eight paintings and 12 drawings in his style of “unprogrammed free abstraction.” The exhibit is on view until Feb. 2 at the Gateway Gallery, 5F of Gateway Tower, Araneta Center, Quezon City.

DoF appoints head of internal audit service

THE Department of Finance (DoF) said it appointed Director Ma. Luisa M. Notario of the Central Financial Management Office to head the new Internal Audit Service (IAS).

In a statement, the DoF said it became the first government agency to set up an IAS, in compliance with a more than 50-year-old law as well as international standards of governance.

The appointment follows the adoption of a charter for the IAS, approved through Department Order No. 02-2018.

In 2016, the Commission on Audit adopted the Philippine Internal Auditing Framework for the Public Sector, which “provides authoritative guidance essential for the professional practice of internal auditing,” and is “aligned with the prevailing international principles and standards.”

An IAS in all government agencies was first required under Republic Act No. 3456, or the Internal Auditing Act of 1962, as amended by Republic Act 4177. 

“The DoF-IAS is mandated to provide an independent objective assurance and advisory services designed to add value and improve DoF operations, including its bureaus and attached agencies,” Ms. Notario was quoted in the statement as saying.

The IAS Charter empowers the office, which is independent, to undertake “the  objective examination of evidence for the purpose of providing independent assessments to the DoF Secretary on adequacy and effectiveness of governance, risk management and control processes of DoF.” — Elijah Joseph C. Tubayan

The World Bank is searching for meaning

By Noah Smith

PAUL ROMER’S departure last week as chief economist of the World Bank isn’t an event about just one man and his former job. His exit was undoubtedly influenced by individual factors, but it also illustrates broad challenges for the Bank as an institution.

Romer is, to put it bluntly, a contentious man. A celebrated researcher of economic growth, he has spent years vigorously attacking the ideas of his doctoral adviser, macroeconomist Robert Lucas, and the very field of macroeconomics itself. At the World Bank, his tenure has been marked by heated disputes, including one over how many times the word “and” should be used in official communications.

That sort of approach can be very useful in an academic setting. Indeed, many of Romer’s criticisms of macroeconomics were truths that others in the field had been afraid to speak (though I’m not so sure about his grammatical advice).

But when it comes to navigating the complex bureaucracy of an institution like the World Bank, perfectionism, bluntness, and prickly precision are not necessarily the most endearing traits.

But the bigger question concerns the Bank itself.

The immediate cause of Romer’s departure probably had to do with a public clash over the widely cited Ease of Doing Business rankings. This index, which the World Bank updates frequently, is intended to measure how easy it is to start a business in a particular country.

An accommodating business environment is assumed — both by the Bank and by many economists — to be a good thing. It’s believed to result in more creative destruction — the constant churning of industries and businesses that improves the economy through competition that eliminates inefficient producers. It also reduces monopoly power, by making it easier for new companies to enter a market and compete.

That’s the abstract theory, anyway. In reality, the ease of doing business is hard to measure — the Bank’s criteria might not capture the factors that are most important in encouraging business dynamism, or the rankings might weight the factors incorrectly. Rich countries tend to be ranked higher, but this might just be because countries make it easier to do business once they get rich.

Romer made headlines earlier this month when, speaking to reporters from the Wall Street Journal, he accused the Bank of changing its rankings unfairly. Romer noticed that changes in the factors used to construct the index had the effect of raising Chile’s ranking under conservative governments and lowering it under socialist ones. Romer later clarified that he didn’t mean to assert that politics was a factor in the Bank’s decisions, but nevertheless the damage to the reputation of the rankings, and of the Bank itself, could be long-lasting. Though Romer’s tenure as chief economist had been marked by many clashes, this battle was probably the last straw.

Political motivations or no, however, the overall usefulness of the Ease of Doing Business rankings is highly questionable. Many free-market enthusiasts, such as John Cochrane of the Hoover Institution, believe that if countries up their position in the World Bank’s rankings, growth will follow as a matter of course. But the evidence says otherwise.

In 2016, economics student and blogger Evan Soltas measured whether large increases in a country’s position in the rankings were followed by growth. He found no measurable effect, even in the long term, and that taking the World Bank’s advice on structural issues seems to do very little if anything for economic growth.

If Soltas’s result holds — and given the poor performance of other rankings of business conditions, it seems likely it will — it means that the World Bank has been recommending policies based more on faith and assumptions than on real hard evidence.

Since countries often work hard to improve their position in the rankings, this means that the Bank has probably been squandering its policy clout. And if reforms intended to climb up the rankings end up making societies less equal, the Bank could even have been having a negative impact on the world’s poor. That would be a mistake along the same lines as the one made by the Bank’s sister organization, the International Monetary Fund, which recommended fiscal austerity policies that it later admitted had hurt the countries they were designed to help.

If true, this would be bad for the World Bank, which has been suffering an identity crisis in recent years. Global growth means that few countries need or want the Bank’s development loans, leaving it searching for a reason to continue existing. Many had envisioned the Bank, which employs a large number of academically trained economists, functioning as a think tank to advise countries on how to boost growth. No one needs or wants a think tank that is known for giving bad advice.

So although Romer’s exit will take the World Bank out of the headlines for a while, the deeper questions about its future remain. Its problems are much bigger than one contentious chief economist.

BLOOMBERG